Severfield plc, the market-leading structural steel group, is pleased to announce its annual results for the 12 month period ended 31 March 2018.
Another year of improved performance with a 19% increase in underlying profit before tax, a 13% increase in core dividend and a special dividend of 1.7p per share
- Revenue up 5% to £274.2m (2017: £262.2m)
- Underlying* profit before tax up 19% to £23.5m (2017: £19.8m)
- Underlying basic earnings per share up 15% at 6.4p per share (2017: 5.5p per share)
- Continued strong cash performance resulting in year-end net funds of £33.0m (2017: £32.6m) after equity investment of £5.5m in Indian joint venture to repay term debt
- Total dividend increased by 13% to 2.6p per share (2017: 2.3p per share), includes proposed final dividend of 1.7p per share (2017: 1.6p per share)
- Proposed special dividend of 1.7p per share to deliver a total cash return to shareholders of 4.3p per share
- Return on capital employed (‘ROCE’) of 16.5% (2017: 14.6%)
- Over 100 projects undertaken during the year 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 at 22 Bishopsgate
- UK order book of £237m at 1 June 2018 (1 November 2017: £245m), including landmark contract for the new Google Headquarters at Kings Cross for 2019
- Reorganisation of our factory operations in North Yorkshire now completed
- Continued profitability from Indian joint venture of £0.5m (2017: £0.2m), improving market position now reflected in India order book of £106m at 1 June 2018 (1 November 2017: £79m)
Alan Dunsmore, chief executive officer commented:
‘The strong performance that we are reporting today pays tribute to the hard work of all our staff and continues to reflect our well-established market-leading position and our focus on operational performance and efficiencies.
With a high quality and stable UK order book of £237m and a strong pipeline of opportunities which provides us with good visibility of earnings, together with an encouragingly improving outlook for our Indian joint venture, we remain confident that 2019 will be another year of progress for the Group.’