Severfield has delivered strong financial results despite facing challenging market conditions, marking another successful year.
- The company’s turnover fell slightly to £463.5m, yet it maintained a strong order book with significant contracts in the UK and India.
- Severfield’s underlying operating profit increased by 13%, attributed to strategic acquisitions and effective management.
- The joint venture in India, JSSL, recorded high levels of output, contributing to the company’s profitability.
- The firm’s diversification and expertise in engineering and construction underscore its resilience and robust market presence.
Despite a slight decline in turnover to £463.5m from the previous year’s £491.8m, Severfield’s financial results for the year ending March 2024 reflect resilience amid softening market conditions. The company’s strategic focus on major projects, such as the new Everton FC stadium and the Hinkley Point C nuclear power station, continues to bolster its performance. Chief Executive Alan Dunsmore highlighted the strength of Severfield’s order book, boasting £478m worth of contracts in the UK and an additional £181m in India through its joint venture with JSW Steel.
Alan Dunsmore has pointed out the essential role played by the company’s vast market sector, geographical, and client diversification in achieving a 13% rise in underlying operating profit to £36.5m from the previous year’s £32.5m. This growth can be partly attributed to the acquisition of the Dutch steelwork firm VSCH, which has expanded Severfield’s access to European markets.
In India, the joint venture JSSL has shown exemplary productivity with an output exceeding 100,000 tonnes for the second consecutive year, including subcontracted work. This success has led to an increase in the group’s share of after-tax profit to £1.9m, reflecting a record EBITDA of £13.2m. Future expansion plans are in place with JSSL acquiring a new site in Gujarat, slated for factory development later this year.
Severfield’s adaptability and sustained success in challenging conditions are underpinned by its strong operations and management teams, expert capabilities in engineering and construction, and solid financial positioning. This strategic approach has ensured its competitive edge and longevity in the market.
Severfield’s proactive strategies and diversification efforts have enabled it to thrive despite market adversities.
