Turnover for the year to the end of March 2024 was £463.5m, down 6% on the previous year (£491.8m) and pre-tax profit fell by 15%, from £27.1m last year to £23m this year.
However chief executive Alan Dunsmore said that, despite a softening in market conditions, the company has maintained a strong order book with £478m-worth of contracts secured in the UK and another £181m of work in India, where it has a joint venture with Indian partner JSW Steel.
Severfield has enjoyed strong growth in recent years thanks to major contracts on projects including Hinkley Point C nuclear power station and the new Everton FC stadium.
“The group delivered further underlying profit growth in 2024 against a backdrop of some challenging market conditions, particularly in the UK,” said Dunsmore.
“The combination of our significant market sector, geographical and client diversification, the strength of our operations and management teams, our expert capabilities in engineering and construction and our strong financial position underpin the performance and resilience of the group.”
Underlying operating profit rose by 13% to £36.5m (2023: £32.5m) driven partly by the acquisition last year of Dutch steelwork firm VSCH which gives Severfield greater access to a growing European market.
“In 2024, our Indian joint venture, JSSL, recorded output of more than 100,000 tonnes, including sub-contracted work, for the second year running,” said Dunsmore. “This high level of activity, an improved mix of work and good contract execution is evident in the group’s higher after-tax share of profit of £1.9m (2023: £1.3m), which reflects a record EBITDA of £13.2m.”
JSSL recently acquired a site in Gujarat and plans to start building a new factory there in the second half of this year.
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