For the six months ended 23rd September 2023, Severfield’s interim results show revenue down 8% at £215.3m (2023 H1: £234.9m) but profit before tax up 8% at £11.0m (2023 H1: £10.2m). Underlying operating profit was up 22% at £14.8m (2023 H1: £12.1m).
The half-year results include the acquisition of Voortman Steel Construction (VSCH), a Dutch steel fabrication company, which added £27.8m in revenues for the period.
Revenue from Severfield core construction operations was down by £47m.
Chief executive Alan Dunsmore said that the business had performed well “despite the continuation of the challenging market conditions”.
Severfield had £50m wiped from its order book back in July when Sunset Studios decided to pause construction on its planned new film production base in Hertfordshire. Despite this, other work is coming in.
“The current market conditions remain a challenge for the business,” Alan Dunsmore said, “with some ongoing delays in the conversion of our existing pipeline of opportunities, as clients wait for economic stability, and some lower tendering activity and competitive pricing, particularly in the distribution sector. Despite this, we continue to see some large project opportunities in the UK and continental Europe and we have a prominent position in market sectors with strong growth potential and are well-positioned to win projects in support of a low-carbon economy.”
Severfield’s order book stands at £482m, compared to £510m five months ago