Boosted by projects like the new Everton stadium, Hinkley Point and Pinewood Studios, Severfield grew revenue by 22% in the year to 25th March 2023.
Severfield made a profit before tax of £27.1m (2022: 21.0m) on revenue of £491.8m (2022: £403.6m).
Underlying profit before tax was up 20% to £32.5m (2022: £27.1m), ahead of expectations due to strong operational delivery, the board said.
The India joint venture, JSW Severfield Structure Ltd (JSSL), continues to grow in importance for the group. Formed in 2008, it has grown slowly but last year accounted for 28% of group revenues, up from 25% the previous year. It recorded output of more than 100,000 tonnes, including sub-contracted work, in the last financial year, which is an output equivalent to that of Severfield’s operations in the UK and Europe.
At the end of the year the order book stood at £510m in the UK and Europe and £139m in India.
In April 2023, after the year-end, Severfield completed the acquisition of Voortman Steel Construction Holding in the Netherlands for €24m (£21m). The acquisition is expected to be earnings enhancing in 2024.
Chief executive Alan Dunsmore 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. This demonstrates the success of our strategy to diversify the sectors and geographies we serve, reflects the high-quality of our operations and is testament to the talent and commitment of our people. We were also pleased to complete the acquisition of Voortman, which brings in new clients, sectors and opportunities, enhancing our position as one of Europe's strongest structural steel groups, and positioning us for further growth in the region.
“Whilst 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."
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