Resilient performance despite COVID-19, good cash generation and strong balance sheet, UK and Europe order book of £301m, India order book of £140m
Highlights
- Revenue up 11% to £363.3m (2020: £327.4m)
- Underlying* profit before tax of £24.3m (2020: £28.6m), demonstrates resilience of the Group against COVID-19 backdrop
- Underlying* basic earnings per share of 6.4p (2020: 7.7p)
- Total dividend of 2.9p per share (2020: 2.9p per share), includes proposed final dividend of 1.8p per share (2020: 1.8p per share)
- Acquisition of DAM Structures, an innovative steel fabrication company, giving the Group immediate access to attractive, complementary market sectors with strong growth potential including the propping, railway and steel piling markets
- Good cash generation resulting in year-end cash balances of £25.0m. Net funds (pre-IFRS 16 basis**) were £4.4m (2020: £16.4m), including acquisition loans of £20.7m (2020: £13.1m)
- No claims made under COVID-related government schemes, all tax deferrals now fully up to date
- Over 100 projects undertaken during the year in the UK, Ireland and continental Europe in diverse market sectors including industrial and distribution, data centres, nuclear and commercial offices
- UK and Europe order book of £301m at 1 June 2021 (1 November 2020: £287m), including £18m for DAM Structures, of which £241m is for delivery over the next twelve months
- Share of loss from Indian joint venture (‘JSSL’) of £0.7m (2020: profit of £2.2m), reflecting the COVID-19 impacted loss in H1 and break-even profit position in H2
- India order book of £140m at 1 June 2021 (1 November 2020: £98m), a record high for the company, reflects strong underlying demand for structural steel in India
FY22 and outlook
- High quality UK and Europe order book supports continued growth throughout the 2022 financial year and beyond
- Tendering and pipeline activity in the UK and Europe remains very encouraging, albeit at tighter prices given current market conditions
- Steel price increases and supply chain pressures continue to be effectively managed
- India – output currently being disrupted by ongoing second wave of COVID-19, step up in order book, strong pipeline and existing client relationships leave JSSL very well positioned once current COVID-19 issues subside
- New Group sustainability strategy with target to be operationally carbon neutral in the 2021 calendar year, the Group signed up to the SteelZero initiative in April 2021
- Strategy remains unchanged, based on growth, both organic and through selective acquisitions, operational improvements and creating further value in India
- Positive momentum is evident across the Group which, in combination with our cash generative nature and market sector, geographical and client diversity, provides the platform for further operational and strategic progress in the 2022 financial year
Alan Dunsmore, Chief Executive Officer commented:
‘The Group’s strategy to build a balanced business, with geographic, sector and client diversity, has facilitated not only revenue growth of around 30 per cent over the last three years but has also provided us with resilience during the pandemic. Our strong balance sheet and ability to generate cash has enabled us to continue to invest in our operations and in strategic acquisitions, such as DAM Structures. We have an established platform for further operational and strategic progress in the year ahead and with the current order book levels and pipeline activity, have the capacity to deliver enhanced shareholder returns in the future.’
See the full press release on our RNS feed: Results For The Year Ended 31 March 2021
