Underlying pre-tax profit jumped a fifth to £32.5m in the year to March 2023 off record revenue up 22% to £492m.
Alan Dunsmore, Chief Executive Officer, said the the outlook remained bright for the business with a high-quality, diversified UK and Europe order book at £510m, that includes industrial and distribution, film studio, commercial offices and nuclear orders.
He said: “2023 was a very successful year for the Group. We reported record revenue, delivered underlying profits ahead of expectations and secured a significant value of new, high-quality work across all our geographies.
“As well as our secured workload, we are encouraged by the current level of tendering and pipeline activity across the group.
“We are seeing some significant opportunities in the UK and in continental Europe as, despite some current softer market conditions in the distribution sector and delays in client decision- making, many of our chosen markets continue to have a favourable outlook.”
He added: “While there are signs of inflation easing, we remain mindful of the macro-economic backdrop.
“However, given the group’s performance to date and the strength of our order books, we are confident of delivering further progress and a result for 2024 which is in line with our expectations.”
During the year, the firm’s Indian joint venture recorded output of more than 100,000 tonnes, including sub- contracted work, an output equivalent to that of Severfield’s operations in the UK and Europe and a record for the business.
In April after the year end, Severfield bought £65m turnover Dutch steel group Voortman Steel Construction for £21m.
The Voortman deal opens door to the European market and fast-growing power distribution sector.
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