Update on Leadenhall Building and Current Trading

Severfield plc, the market-leading structural steel group, announces an update on developments at the Leadenhall Building and its overall trading performance.

Leadenhall Building

The Group has incurred almost £1m of costs to date relating to a programme of bolt replacement works at the Leadenhall Building, a contract that was completed by the Group in 2013. This programme is being undertaken in conjunction with British Land, Laing O’Rourke and Arup and is likely to continue until the end of the calendar year. Whilst these works progress, all parties continue discussions to agree where the liability for the costs of the programme should rest. The Group’s costs are being regarded as exceptional and will not impact our underlying operating profit for the current year.

Current trading

The Group’s overall trading performance continues to be in line with management expectations. Its financial position remains satisfactory and net funds are expected to remain positive at the year end. UK The Group’s current year focus has been on both operational and margin improvements, rather than revenue, and continues to deliver in line with expectations. The UK order book of £194m has strengthened further in recent months and provides a solid platform for a return to revenue growth in the next financial year.

JSW Severfield Structures Ltd (India)

The Indian business has continued to perform well in the second half of the year and volume throughput in the factory coupled with better operational performance is enabling it to operate around break-even level. The order book of £39m remains solid although the short term pipeline of potential new orders has softened recently, reflecting more caution in the immediate economic outlook in India.

Severfield recruits a significant number of staff from the infrastructure division of Mabey Bridge

Severfield, the UK’s market-leading structural steel company has announced the recruitment of a significant number of staff from the infrastructure division of Mabey Bridge in Chepstow. The move underlines Severfield’s ongoing strategy to grow and diversify in expanding markets such as infrastructure.

Mabey Bridge announced last year that it was winding down its infrastructure division.

The new Severfield ‘bridge team’ continues to be based in Chepstow, in Severfield office premises.

All manufacturing for the Severfield bridge team will be carried out at Severfield’s Lostock factory.

Commenting on the news, Ian Lawson, Chief Executive Officer of Severfield said:

“We are delighted to recruit a large number of employees from the Mabey Bridge business. It provides us with a fantastic opportunity to enhance and expand our current bridge capabilities which is excellent news for clients.”

Severfield inspires the next generation by opening its doors

On the 6th March 2015 Severfield opened the doors at its Lostock and Dalton sites to provide local colleges and school children with the opportunity to gain an insight into what a career in construction really looks like.

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Thirsk High School and Sixth Form College students at Dalton with Janet Watson – Mayor of Thirsk

The Open Doors initiative (www.opendoorsweekend.co.uk) is organised by the UK Contractors Group (UKCG), the Scottish Contractors Group (SCG), the Industry Training Board and Sector Skills Council, CITB, the Chartered Institute of Building (CIOB) and the Considerate Constructors Scheme.

Severfield was the first organisation to open its factory doors as typically the event involves construction sites around the UK.

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Visitors at Lostock on their tour of the factory

Over 100 visitors from 5 education establishments attended. These included:

2 colleges,York College and Bolton College
3 schools, St James’s Church of England School – Bolton, St Michael’s Church of England High School – Chorley and Thirsk High School & Six Form College

Other attendees included:

Julie Hilling MP – Bolton West
Janet Watson – Mayor of Thirsk
Councillor Derek Adamson
Lecturers, Teachers and a Careers Advisor

Potential candidates for apprenticeships also attended.

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Thirsk High School and Sixth Form College students on their tour at Dalton

The feedback Severfield has received following the event has been astounding and it’s very heartening that we have managed to inspire young people to consider a career within construction and engineering.

All educational organisations who attended the day have expressed a wish to continue to work closely with Severfield and have asked to be made aware of any work placement opportunities.

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Visitors within the factory at our 55 acre site at Dalton

Staff at both sites were outstanding both prior to and during the event. Severfield could not have achieved the event without such a cohesive team effort.

Carillion is hosting a meet the Buyer event on Thursday 26th February

The event is being held at the Champions Lounge, Centenary Stand at Liverpool Football Club, where members of the Carillion project team and supply chain will be available to talk about potential opportunities for both projects.

In December 2014 Severfield announced its appointment as the steelwork contractor for the expansion of Liverpool Football Club’s Main Stand and associated improvements.

Work on the project, which will add c. 8,500 seats to the Main Stand and increase the overall capacity of Anfield Stadium to c. 54,000 is scheduled for completion in Q3 2016.

The new Royal hospital, will be the largest hospital in the UK to provide all single en-suite bedrooms on each patient ward.

There will be 23 wards and a large clinical research facility alongside a 40-bedded critical care unit and 18 state-of-the-art operating theatres.

Nigel Worboys, head of supply chain for Carillion said: “The Anfield Main Stand expansion and Royal Hospital will be two of the biggest construction projects in the city and offer huge opportunities for local people, suppliers and subcontractors.

“They will generate genuine opportunities for the Liverpool regional economy.”

Severfield partners with WS Transportation for safe and efficient deliveries

Severfield, the UK’s market leading structural steel company has announced an exclusive 5 year contract with WS Transportation. The contract covers all Severfield sites in the UK and Ireland for finished goods and other raw material supplies.

“With every Severfield load being time-critical, our deliveries must be made safely and efficiently, commented Ian Cochrane, Chief Operating Officer at Severfield.

“WS Transportation worked together with trailer manufacturer SDC and Severfield to specify a new trailer which met with our high safety standards. The result of this collaboration is that our operations are now integrated in a close partnership, with WS Transportation forming a vital link in Severfield’s supply chain.”

WS Transportation is a new entrant into the flat trailer market; however with close links to Eddie Stobart Limited they have significant logistics experience. By partnering with Severfield, WS Transportation has quickly achieved a major presence in the industry, clearly demonstrating commitment and the capability to drive improvements in safety.

The new trailer includes a reinforced 1.8m headboard, a bespoke fall-arrest system, an exclusion zone, multiple positions for pins and enhanced cycle safety equipment. Training programmes, in-house planning and operating software systems have produced a haulage solution that highlights a step change in safety. The HGV’s are Euro 6, FORS and CLOCS compliant with side view cameras.

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“This contract is a direct result of the close relationship between Severfield and WS Transportation, said David Cox, Managing Director at WS Transportation.

“Together we have designed a trailer and safety system which during operations maximises safety for drivers, site operators, cyclists and other road users. It is clear that Severfield and WS Transportation both share the same philosophy and culture on safety being a priority.”

Severfield is opening its doors!

Severfield is taking part in the Open Doors Weekend on the 6th March 2015.

Organised by the UK Contractors Group (UKCG), the Scottish Contractors Group (SCG), the Industry Training Board and Sector Skills Council, CITB, the Chartered Institute of Building (CIOB) and the Considerate Constructors Scheme, Open Doors provides young people with a safe, exciting and unique look at construction.

Severfield is opening the doors of its manufacturing facilities at Dalton in North Yorkshire and Lostock in the North West. Teachers can book their classes online.

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Severfield secures contract wins worth £43 million, including Anfield stadium development

Severfield plc, the market leading structural steel group, announces that its operational momentum continues by winning six new contracts, worth £43 million.

Contract highlights:

Appointment as the steelwork contractor for the expansion of Liverpool Football Club’s Main Stand and associated improvements, supporting Carillion Plc;

[Work on the project, which will add c. 8,500 seats to the Main Stand and increase the overall capacity of Anfield Stadium to c. 54,000, and is scheduled for completion in Q3 2016]

Five other contracts including:
o 3 commercial office developments in London;
o A major distribution centre in the Midlands; and
o A waste-to-energy plant in Dublin

Ian Lawson, CEO, Severfield, commented:
“We are delighted to announce these multiple contract wins. It continues the momentum we’ve established in recent months, and all of these new contracts are in sectors where we have a strong market share or are seeing positive future trends. We are thrilled to be working for Carillion on such a high profile project as Anfield, especially as stadia is a sector where we have a demonstrable track record.”

Severfield announces Interim Results for the period ended 30 September 2014

Interim Results

Severfield plc, the market leading structural steel group, today announces its interim results for the six month period ended 30 September 2014.

– UK margin progression in line with expectations

– Strengthening order book

– Improved performance from Indian joint venture

Ian Lawson, chief executive officer commented: “The first half of the year has seen further good progress across the whole Group. Stability within our UK operations has supported continued margin improvement in line with expectations and sustained production levels have underpinned much improved performance in India. The combination of a strong first half cash performance and the successful refinancing provides further balance sheet strength and a solid foundation for the Group as it continues to improve its profitability and develop its wider strategy. Overall, the Group’s strengthening operations and performance continues to leave it well placed to benefit from an improving market in the UK and we are encouraged by the improvement in our order intake, reflecting the higher levels of market activity. Accordingly, the Group remains on course to deliver earnings for the full year in line with the board’s expectations.”

Severfield promotes careers at Scarborough Engineering Week

Severfield staff and apprentices have been promoting careers in structural steelwork at Scarborough Engineering Week.

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Aimed at young people between the ages of 4-19 years, Scarborough Engineering Week welcomes approximately 2,000 students and places a firm focus on young people taking control of their future and promotes careers available in Science, Technology, Engineering and Maths.

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Taking full advantage of the opportunity to engage with youngsters, Severfield demonstrated just how exciting working within the UK’s market-leading structural steel company can be.

Apprentices from Severfield at Sherburn assisted with manning the Severfield stand, providing valuable guidance and advice to students in relation to how apprenticeships work, on the job training (learning whilst earning) and the benefits of starting their careers at Severfield.

Exhibitor stands were interactive; Severfield in conjunction with Lincoln Electric, provided a Virtual Welder for the event. This proved highly popular, along with touch screen monitors with BAM Models of recent projects.

The below feedback was received from Scalby School:

‘The students thoroughly enjoyed learning about the different aspects and careers for engineering with either taking part or interacting with staff from the various companies, colleges and universities involved. This was an excellent opportunity for students to discover different career paths available to them and the vast diversity that is encompassed by engineering.’

For further information on what careers are available at Severfield, please visit our Careers page.