Steelwork contractor Severfield lifts margins to 7%

Aaron Morby 7 years ago
Share

Britain’s biggest steelwork contractor has restored margins to 7% after streamlining production and tightening up on contract management.

This morning chief executive Ian Lawson revealed pre-tax profit in the first half had jumped to £7.4m from £3.1m in the same period in 2015 from stable turnover of £118m.

Lawson said the steelwork contractor was on course to exceed management expectations for the full-year as orders and performance improved.

Severfield said it planned to spend a further £2m developing  its bridge fabrication facilities over the coming year to capture the forecast uplift in Government infrastructure spending.

He said: “Margins are significantly up, our order book has continued to rise to a six year high while 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.”

He added: “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.”

Severfield said the uplift in operation margin from 4.3% to 7% over the year was also partly helped by a contribution from its Composition Metal Flooring business, where it holds a 50% stake.

Major new orders  include the commercial tower at 22 Bishopsgate in London’s square mile, new distribution centres including one for an on-line major retailer, a retail centre expansion and the Graphene Innovation Centre in Manchester.

Lawson added the pipeline for potential future orders also continued to remain steady with production levels set to remain strong for the foreseeable future.

Latest news

Road sweeper specialist files administration notice

Go Plant lodges court notice
3 hours ago

Anglian Homes rides in to finish crashed Everest contracts

Rival doubled glazed window specialist commits to complete orders
2 hours ago

Final work starts to connect super sewer to London system

End in sight with 1.5m thick concrete wall to be demolished to link-up to Lee Tunnel sewer system
3 hours ago

Legal challenge launched against £1.5bn A66 dualling

Balfour Beatty, Kier and Keltbray must now await outcome of court challenge
3 hours ago

John F Hunt wins 24-storey Battersea tower

Specialist to carry-out demolition, enabling works and RC frame construction
22 hours ago

William Hare wins steelwork on £500m Broadgate towers

Specialist to work on 2 Finsbury Avenue with McAlpine
23 hours ago

McAlpine appoints MD to grow ventures business

Owain Thomas will build on private rental and healthcare development successes
21 hours ago

BAM Co-op Live Arena opening delayed yet again

Another gig cancelled last night amid last minute safety concerns
1 day ago

National Grid unveils winners for £9bn network upgrade

New 'enterprise model' to deliver infrastructure schemes quicker and cheaper
2 days ago

Turkish insulation panel maker to build £45m UK factory

Assan Panel to open first UK plant at Freeport East
1 day ago

Expanding consultant Stantec swoops for Hydrock

Stantec UK business expands by a third as 950 staff join from Bristol-based engineer
2 days ago

Contractors wanted for £800m highways deal

Bids invited for Eastern Highways Alliance Framework 4
1 day ago

Galliford Try names group head of infrastructure

David Lowery promoted to Divisional Managing Director – Infrastructure.
1 day ago

Chigwell Group looks at stock market listing

Essex contractor registers as Public Limited Company
2 days ago

A57 Mottram Bypass clears final legal challenge

Balfour Beatty to get go-ahead to start shortly
2 days ago

100 jobs axed as Geoffrey Osborne confirms administration

Chairman Andrew Osborne calls it a 'sad day' as board loses fight for survival
3 days ago

Midgard set for Notting Hill office tower overhaul

Landmark project edges towards final approval after 10-year planning saga
2 days ago

Cumbrian civils firm clinches £40m Sellafield contract

Civils specialist Stobbarts will support McAlpine on groundworks and concrete
2 days ago

Designers named for London 2000-bed student rooms job

Bouygues will build £400m London School of Economics student scheme next to Tate Modern
2 days ago

£117m-turnover contractor files administration notice

ARJ Construction lodges court notice
3 days ago

£1bn London Blackfriars tower blocks approved

Trio of buildings rising to 45, 40 and 22 storeys approved by Southwark Council
3 days ago

Council decides to end Balfour deal after 13 years

Contractor has been maintaining roads across Herefordshire since 2013
3 days ago

Six civils clients to switch to low carbon concrete and steel

National Highways, Northumbrian Water and Sellafield sign fresh decarbonising pledge
4 days ago

Fortem extends homes repair deal across Birmingham

Willmott Dixon owned firm adds another two years to deal worth £170m
3 days ago

Kier wins £118m civil service Darlington hub

Work is expected to start towards the end of this year
4 days ago

Green light for 34-storey Digbeth apartments tower

480 flats will be delivered for Clarion housing association
3 days ago

LHC starts race for major retrofit and decarb framework

Hunt starts for firms to help with 6.1m social homes upgrade target
4 days ago

Windows giant Everest crashes into administration

Around 350 jobs at risk while hunt starts for a buyer to salvage business
4 days ago

Green light for £500m Newcastle health complex

Mixed use scheme will promote healthy living across all stages of life
4 days ago

Olympian Homes gets go-ahead for Bristol’s tallest building

Work on student and co-living towers to start this summer
4 days ago

Contractor services