Severfield plc, the market-leading structural steel group, announces its results for the six-month period ended 30 September 2019
H1 / full year profit split and full year guidance in line with expectations, UK and Europe order book of £323m, post period-end acquisition of Harry Peers
Revenue of £131.7m (H1 2018: £149.1m)
Underlying* profit before tax of £8.2m (H1 2018: £13.1m) in line with expectations, current trading remains good with a number of large ongoing contracts expected to deliver stronger profits in H2
Interim dividend increased by 10% to 1.1p per share (H1 2018: 1.0p per share)
Good cash generation, resulting in period-end net funds of £22.5m (excluding IFRS 16 lease liabilities of £11.9m**) (31 March 2019: net funds of £25.1m)
Over 80 projects undertaken during the period in the UK, Ireland and continental Europe in diverse market sectors including commercial offices (both in London and the UK regions), industrial and distribution, data centres and transport infrastructure
UK and Europe order book of £323m at 1 November 2019 (1 June 2019: £295m), including £20m for Harry Peers
Share of profit from Indian joint venture (‘JSSL’) more than trebled at £1.3m (H1 2018: £0.4m), reflecting expanding Indian market position
India order book of £134m at 1 November 2019 (1 June 2019: £134m), expansion of the Bellary facility on course for completion by the end of the current financial year
Post period-end acquisition of Harry Peers, a leading structural steelwork business, for net initial consideration of £18m, with contingent consideration of up to £7m potentially payable in the 2021 financial year
* Underlying results are stated before non-underlying items. There were no non-underlying items in the periods ended 30 September 2018 and 2019 and, accordingly, there is no difference between the underlying profit measures and their statutory equivalents.
** The Group excludes IFRS 16 lease liabilities from its measure of net funds / debt as they are excluded from the definition of net debt as set out in the Group’s borrowing facilities.
Alan Dunsmore, Chief Executive Officer commented:
‘We have made strategic and operational progress in the first half of the year. We were pleased to complete the acquisition of Harry Peers, which brings in new clients, sectors and opportunities as well as continuing organic growth across all our geographies. We are pleased to confirm that full year guidance is in line with expectations and with our strong order book, cash generative business and clear growth plans, we remain confident in our future ability to deliver returns for our shareholders.’