Severfield’s show of steel with robust orders
STRUCTURAL STEEL firm Severfield, which has worked on the retractable roof for Wimbledon No 1 Court, the new stadium for Tottenham Hotspur FC and the Shard, reported a solid order book and said its overall trading performance is in line with upwardly revised expectations.
In a trading update for the year to March 31, the Thirsk-based group said its financial position remains strong and year-end net funds were approximately £33m.
The UK order book stood at £242m on April 1, which Severfield described as solid, including work across a wide range of market sectors and project sizes.
The order book remains in line with the group’s normal order book levels, which typically equate to eight to ten months of annualised revenue.
“Our pipeline of potential future orders has remained stable with a good balance of work across all key market sectors,” the group said.
It added that both the UK order book and pipeline performance are consistent with its progress towards strategic targets, including the 2020 strategic profit target of £26m.
Severfield said its Indian business performed well in the second half of the year, reflecting good operational performance coupled with lower financing costs following the repayment of the joint venture’s term debt in June 2017.
It said the Indian order book of £65m remains strong and contains an appropriate mix of commercial work and lower margin industrial work.
“We remain confident in the long term development of the business and believe it continues to have a solid foundation from which to deliver future profitable growth,” the group said.
Severfield will announce its financial results for the year to March 31 on June 20.
COURT IN THE ACT: Severfield has provided work for the retractable roof at Wimbledon’s No 1 Court among other notable projects.