Sign up United Kingdom
Proactive Investors - Run By Investors For Investors

Severfield sees “stable market” for UK steel despite Brexit uncertainty

A pipeline of private orders for commercial, industrial and data centre projects is expected to be supported by upcoming major UK government projects
building site steel construction
Severfield expanded its shareholder payout thanks to a “strong cash performance”

Steel group Severfield Plc (LON:SFR) said it continues to see a stable market in the UK despite the uncertainties of Brexit, forecasting modest economic growth and a ‘good’ pipeline of potential future orders.

Severfield, in its full year financial results statement, highlighted a number of significant projects in the coming months for key business areas such as commercial offices, industrial, data centres and infrastructure.

READ: Wednesday’s FTSE 100 market report

It noted the strength of the market for data centres and industrial orders particularly. In this area, it noted the December award of a £50mln project for Google which will see it supply 15,000 tonnes of structural steelwork for a new eleven storey head office building.

In the twelve months ended March 31, the group participated in over 100 projects including Tottenham Hotspur FC’s new stadium, the installation of the retractable roof for Wimbledon No.1 Court and a new commercial tower at 22 Bishopsgate.

Severfield said it has a UK order book of £237mln, as at 1 June 2018.

The company also looked further ahead, to UK Government projects in the transport sector, where it sees a pipeline of major projects – including HS2 stations and bridges, a potential expansion of Heathrow airport and ongoing investment into Network Rail and Highways England. Severfield believes it is well positioned to win contracts tied to such projects, which have significant steel content.

In terms of its financial results, the company reported a 5% increase in revenue to £274.2mln for the year. Underlying profit increased 19% to £23.5mln, while the reported profit before tax was stated at £22.2mln, up from £18.1mln in the preceding year.

Severfield highlighted a “strong cash performance” resulting in year-end net funds of £33mln, after a £5.5mln equity investment in an Indian joint venture.

It has increased its total dividend for the year by 13%, with a proposed final dividend of 1.7p per share taking the annual dividend to 2.6p, and an additional special 1.7p dividend is propsed which will deliver an overall payout to 4.3p per share.

View full SFR profile View Profile

Severfield-Rowen plc Timeline

Related Articles

July 17 2018
Last week, the Toronto-listed firm said it was buying buying Satellite Truss Ltd for C$1.2mln taking it into the eastern Ontario market

No investment advice

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person. You further understand that none of the information providers or their affiliates will advise you personally concerning the nature, potential, advisability, value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter.

You understand that the Site may contain opinions from time to time with regard to securities mentioned in other products, including company related products, and that those opinions may be different from those obtained by using another product related to the Company. You understand and agree that contributors may write about securities in which they or their firms have a position, and that they may trade such securities for their own account. In cases where the position is held at the time of publication and such position is known to the Company, appropriate disclosure is made. However, you understand and agree that at the time of any transaction that you make, one or more contributors may have a position in the securities written about. You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate.

From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

© Proactive Investors 2018

Proactive Investors Limited, trading as “Proactiveinvestors United Kingdom”, is Authorised and regulated by the Financial Conduct Authority.
Registered in England with Company Registration number 05639690. Group VAT registration number 872070825 FCA Registration number 559082. You can contact us here.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use