Severfield secures a record UK and European order book
STRUCTURAL steel group Severfield has revealed that it made good progress in the second half of the 2024 financial year and expects to deliver a full-year result which is slightly above its previous expectations
Severfield has issued a trading update for the year ended March 30, and announced its intention to start a share buyback programme to return £10m to shareholders.
In the statement, Severfield said the financial position of the group remained strong and its year-end net debt was also ahead of its previous expectations, “reflecting an improvement in underlying working capital and an increase in advance payments”.
The statement added: “In the second half of the year, we have continued to secure a significant value of new work, resulting in a record UK and Europe order book of £511m at April 1, 2024, of which £397m is for delivery over the next 12 months.”
The order book remains well-diversified and contains a good mix of projects across the group’s key market sectors, the statement said.
“The growth in the order book reflects the continued strengthening of our market position in Europe, supported by the acquisition of Voortman, and 32 per cent of the order book now represents projects in continental Europe and Ireland.
“We continue to see large project opportunities in both our Commercial and Industrial division and Nuclear and Infrastructure division, in the UK, continental Europe and Ireland.”
These include projects in support of a low-carbon economy such as battery plants, energy efficient buildings, manufacturing facilities for renewable energy and offshore wind projects.
The statement added: “Furthermore, the group remains wellplaced to meet an ongoing demand for infrastructure investment, including a growing focus on major projects which can mitigate the impacts of climate change and deliver energy security.
“This includes nuclear (such as Sizewell C and small nuclear reactors), carbon capture and hydrogen production, together with HS2 and Northern Powerhouse Rail.”
In the statement, Severfield added: “The group’s capital allocation priorities are to support its ongoing operational requirements and profitable organic growth opportunities, to pay sustainable core dividends to shareholders, to fund strategic growth opportunities, and to make further returns of capital to shareholders as appropriate, whilst maintaining a strong balance sheet.
“Consistent with this policy and given the highly cash generative nature of the business, the group today announces that it intends to commence a £10m share buyback programme, subject to market conditions.”