Severfield warns steelwork tender margins tightening

Aaron Morby 6 months ago
Share

Britain’s biggest constructional steelwork contractor has warned that tender margins are tightening at its UK business.

Orders up as Republic of Ireland and Europe help offset weakening UK demand

The firm said that softer market conditions had created some spare fabrication capacity, although the firm said it had begun to see stirrings of more bidding activity in the London commercial market.

Reporting an 11% rise in pre-tax profit to £25m, Alan Dunsmore, chief executive officer, said that the impact of these UK market conditions was being eased by the re-emergence of the market in the Republic of Ireland and opportunities in continental Europe, where the firm has a fledgling Dutch business.

He added that Severfield was also pursuing infrastructure work opportunities for HS2 and the expansion of Heathrow airport.

“We also see good opportunities from the government’s ongoing Network Rail and Highways England investment programmes,” he added.

Revenue in the year to April was broadly flat year-on-year at £275m, mainly as a result of the softer UK market conditions and some project delays, to both contracts within the order book and in the conversion of our pipeline of opportunities.

This predominantly impacted volumes in 2019.

Dunsmore said that growth in operating margin to 8.5% (2018: 8.3%) reflected better risk and contract management processes at the firm.

The order book of £295m was up £65m on the half-year and contained a high proportion of lower risk, regional projects with shorter lead times.

It includes a £50m order for the new Google Headquarters, which will require over 15,000 tonnes of structural steelwork for the 11 storey head office building at Kings Cross.

Dunsmore added: “We remain on track to deliver on our strategic targets, including the doubling of underlying profit before tax to £26m by 2020 and we look forward to another positive year ahead.”

Latest news

Multiplex set for massive Elephant & Castle win

Contractor tipped to beat off competition from Mace for one of year's biggest building awards
3 hours ago

Opinion: Now time for Boris to prove his worth

Prime Minister must stick to promises as Labour needs a radical rethink
1 hour ago

132 jobs saved as collapsed scaffolder Acorn pre-packed

Former directors of Acorn Scaffolding (Yorkshire) buy assets for £110,000
12 mins ago

Balfour Beatty creates new technology chief role

Chris Johnson promoted to new strategic role reporting directly to Leo Quinn
2 hours ago

Eutopia Homes advances debut £105m Salford scheme

Former Essential Living boss lodges plans for first of three schemes worth £365m
2 hours ago

Costain profits slashed after road row ruling

Profit forecasts halved following legal U-turn over Welsh road dispute
24 hours ago

Balfour Beatty to exceed 2019 profit forecast

US probe into falsification of maintenance records extended to all 21 US air force bases
1 day ago

40 jobs axed as Leeds firm RDF Building collapses

Third east coast contractor sinks in less than 10 days
1 day ago

Dramatic crane collapse video shows site damage

Footage reveals aftermath of Kingston crane failure
1 day ago

Plans submitted for London ‘hanging gardens’ tower

36-storey 50 Fenchurch Street tower will feature huge green wall
1 day ago

Balfour gets go-ahead to restart Midland Met hospital

£267m contract award to restart job hit by Carillion collapse and funding wrangles
2 days ago

Vinci clinches Staffordshire Uni £40m skills hub

Work will start this spring on the Catalyst building in Stoke on Trent
1 day ago

McAlpine wins November contracts league race

BAM stakes claim as new favourite to be crowned 2019's greatest work winner
2 days ago

Tower crane in London collapses in high winds

Jib snaps on residential site in Kingston
2 days ago

Costain offloads Spanish golf courses for a loss

Costain to book £8.9m loss from sale of golf course and marina
2 days ago

Yorkshire Water names final AMP7 framework winners

Nine firms to share £650m clean and waste pipe spend
2 days ago

Balfour Beatty extolled as Britain’s most admired contractor

Business chiefs judge major contractors to find most admired firms
2 days ago

Amey chief executive Andy Milner exits

Amanda Fisher, MD of FM business, takes role of acting CEO
3 days ago

London council starts £520m housing upkeep contest

Lambeth to overhaul housing maintenance with new contractor line-up
2 days ago

£340m northern new-build framework winners

Six firms secure affordable housing major project lot in Yorkshire and Humberside region
3 days ago

Bad weather bogs down construction output

Construction suffers biggest monthly output fall for nearly two years
3 days ago

Boost your online presence – join the Enquirer Directory

Site for suppliers and buyers showcases products, services and latest stories
2 years ago

86 jobs cut as North East civils firm goes under

Joyce Construction & Civils is latest casualty of tightening market
4 days ago

Sewer breach sweeps away three workers on Tideway site

Court fines Thames Water Utilities £300,000 after Greenwich accident
3 days ago

Plans lodged for £30m Teesside indoor ski centre

Three-storey complex to be built at Middlesbrough Dock in Middlehaven
3 days ago

Willmott Dixon wins £18m historic London school rebuild

Historic St Dunstan’s College Lewisham site tol be redeveloped
3 days ago

Train narrowly misses trapped concrete mixer on crossing

Amey site staff beckoned truck onto crossing as warning lights flashed
3 days ago

Plans for Manchester Metropolitan Institute of Sport

Eric Wright has drawn up demolition and construction management plans
4 days ago

Clugston debt rumoured at over £40m

150 immediate job cuts with 262 staff retained to help sale of contracts
4 days ago

Contractors rally to help Clugston staff facing the axe

Trade body calls on firms to offer laid off staff jobs in run up to Christmas
7 days ago

Contractor services