Severfield announces increased profit and highest order book for six years

Steelwork contractor Severfield has increased pre-tax profit in the six months ending in September to £7.4M from £3.1M in the same period in 2015.

Increased profitability was reflected in the company’s highest order book for more than six years.

Severfield said it has undertaken more than 90 projects during the six month period in key market sectors including commercial office developments, industrial and distribution facilities, stadia and transport.

Severfield Chief Executive Ian Lawson (pictured) said: “I am delighted with our strong performance in the first half, which has continued since the period end.

“Margins are significantly up, our order book has continued to rise to a six year high whilst our pipeline remains steady. In combination with the strong cash generation in the first half, this has given us the confidence to increase the interim dividend by 40% and we expect profit growth for the full year to be comfortably ahead of expectations.

“We have a strong platform from which to implement our strategy, which targets to double our underlying profit before tax over the next four years, and continue to create value for our shareholders.”

Looking ahead Mr Lawson said the company will continue to develop its bridge infrastructure business in the first half of the year and capital investment plans include a further £2M to enhance its bridge fabrication capabilities.