Severfield boasts £300m order book after resilient 2020

Aaron Morby 2 years ago
Share

Britain’s biggest steelwork contractor Severfield is reporting an encouraging pipeline of orders despite lower levels of activity in the office sector.

Severfield is optimistic about the year ahead as orders flow in
Severfield is optimistic about the year ahead as orders flow in

Chief executive Alan Dunsmore said Severfield also continued to manage steel price rises and challenges over the availability of certain product lines.

He said: “Steel remains largely a pass-through cost for the group, albeit the recent steel price increases are likely to impact working capital in the short term.

“In response to the current market conditions and the associated supply chain pressures, we remain in regular contact with our customers and our major supply chain partners and, for steel, we benefit from relationships with a number of partners in the UK and continental Europe, reducing the risk of interruptions to the group’s steel supply.

“We have also experienced some challenges with the restricted supply of cold rolled steel over the past 12 months, which we continue to manage by forward purchasing as appropriate.”

The firm said tendering and pipeline activity in the UK and Europe remained very encouraging, albeit at tighter prices given current market conditions.

He added Severfield’s order book of £301m contained a healthy mix of projects across a range of sectors, including industrial and distribution, stadia and leisure, nuclear, transport infrastructure and commercial offices.

In the year to March, Sevefield this morning reported resilient results, with revenue up 11% at £363m due to a £20m increase in order flow and a first full-year contribution from its Harry Peers acquisition.

Pre-tax profits dropped 18% to £21m, with operating margin slipping from 8.2% to 7%.

Dunsmore said margin had recovered well in the second half and he expected next year’s operating margin to return to the normal range of 8 to 10%

He said: “The Group has coped well with the challenges presented by the Covid-19 pandemic and has delivered a resilient set of results for 2021, reflecting the benefit of the strategic and operational progress made over recent years.”

Latest news

Scaffold boss banned over covid loan abuse

Eleven-year director ban after misuse of £50,000 loan
4 hours ago

Gove issues six weeks ultimatum to sign building safety contract

Developers told to sign Government contract issued today or be banned from building homes
10 hours ago

Firm fined £120,000 for lifting two builders in a telehandler bucket

Rochdale builder Hoyle Developments fined after repeated safety breaches
3 days ago

Hunt quashes reports HS2 will stop at Old Oak Common

Chancellor says no "conceivable circumstance" where HS2 would not terminate in Central London
2 days ago

London Chiswick roundabout 24-storey tower approved

Plan for 255 flats and offices finally passed after four previous schemes failed to proceed
9 hours ago

Construction forecast to fall by nearly 5% this year

Private new build housing and RM&I to drive fall but infrastructure growth will also slow
9 hours ago

Mace wins green office block at famous Fleet Street pub site

Contractor to build new 12-storey block pioneering latest sustainable construction methods
10 hours ago

Firms readied for raft of net zero and building safety frameworks

Procurement specialist LHC to tender five mission zero retrofit and building compliance deals
3 days ago

Plans in for two Derby city centre schemes of 1300 homes

Eagle Quarter and Bradshaw Way schemes to breathe life into Derbion centre area
3 days ago

United Living names new infrastructure services MD

Former SSE Contracting operations director John Farrell joins multi-service contractor
3 days ago

Sunak promises Bill to build £100m Holocaust Memorial

Holocaust Memorial Bill will update historic legislation allow the building of a new memorial in London
3 days ago

Mace Interiors to transform Hanover Square office block

Refurbishment work to start this year on major revamp of Mayfair building
4 days ago

Garden village in Darlington gets £43m infrastructure cash

Transport and highways work will pave way for 2,000 new homes
4 days ago

Plans in for Lendlease £1.9bn Birmingham Smithfield scheme

Ambitious plans for City's old market area advance with enabling works hoped to start this year
5 days ago

TClarke on track for £500m turnover this year

Building services specialist sees 2022 revenue and profit up by around a third
4 days ago

McAlpine tenders M&E work at £340m Museum of London job

Demolition and first MEPH work packages come out to bid
4 days ago

BAM signs off on £65m Manchester First Street office job

Briggs & Forrester lined up for MEP package
4 days ago

Eurocell gets £1m insurance payout after cyber attack

UPVC giant details cost-cutting round as market weakens
4 days ago

Mace on board for £440m Manchester Airport upgrade

Green light for second phase of airport transformation programme
5 days ago

Inland Homes losses now set to hit £91m

House builder sells land as construction problems and slower sales wreck balance sheet
5 days ago

Plans in for Stoke on Trent city centre mixed-use scheme

Etruscan Square scheme consists of an arena, 300 homes, hotel and multi-storey car park
5 days ago

Landsec unveils latest £850m Buchanan Galleries plan

Subject to planning, earliest date for first construction would be summer 2024
6 days ago

Van Elle soars to record revenue in first six months

Revenue up a third to £80m at piling specialist with improved order levels ahead
5 days ago

Work starts on BSI Kitemark for MMC homes

Government backs new British Standard to lift barrier to modern methods of construction
5 days ago

Watchdog blasts “rushed” UK Infrastructure Bank

Funding deals only seen so far on broadband and solar farms projects
5 days ago

60,000 Grandfather Rights skills cards soon to be invalid

New guidance issued for how experienced workers can get new CSCS cards before end of 2024
6 days ago

Worker dies after cardiac arrest in HS2 site office

Colleagues and emergency services tried to save man after he collapsed in tunnelling office
6 days ago

Mace wins £150m life sciences centre

Construction to start in April creating 1,000 jobs on London's Euston Road
1 week ago

Redrow switches to heat pumps as standard in all new homes

House builder commits all new detached homes from this month to have heat pumps and underfloor heating
6 days ago

Gilbert Ash set for Barnfield College next phase

Contractor understood to have won latest £26m deal at Luton site
6 days ago

Contractor services