Severfield plc, the market-leading structural steel group, is pleased to announce its interim results for the period ended 30 September 2018.
Continued operational and strategic progress, UK order book of £230m, India expansion underway, full year results in line with expectations
- Revenue up 9% to £149.1m (H1 2017: £137.1m)
- Underlying* profit before tax up 2% to £13.1m against a particularly strong H1 2017 profit of £12.9m which included higher than normal profits from certain project completions
- Interim dividend increased by 11% to 1.0p per share (H1 2017: 0.9p per share)
- Continued cash generation, resulting in period-end net funds of £25.3m (31 March 2018: £33.0m) after the payment of 2018 final and special dividends (£10.3m)
- Over 70 projects undertaken during the period in key market sectors including the new stadium for Tottenham Hotspur FC, the retractable roof for Wimbledon No. 1 Court and a new commercial tower in London at 22 Bishopsgate
- UK order book of £230m at 1 November 2018 (1 June 2018: £237m) comprising more small, lower risk projects
- Continued good performance from Indian joint venture – share of profit of £0.4m (H1 2017: £0.1m)
- Improving Indian market position reflected in order book of £124m at 1 November 2018 (1 June 2018: £106m), expansion of Bellary facility now underway
* Underlying results are stated before non-underlying items of £nil (H1 2017: £1.3m):
Amortisation of acquired intangible assets – £nil (H1 2017: £1.3m)
The associated tax impact of the above – £nil (H1 2017: £0.3m)
Alan Dunsmore, chief executive officer commented:
“Our continued operational and strategic progress has resulted in another period of growth for the Group. In addition to a high quality and stable UK order book, we continue to see good progress in India and have established exciting new organic opportunities for growth.
With our market-leading position, we are well placed to deliver on our strategic objectives and generate enhanced value for our shareholders.”