The company saw its revenue plummet 24% in 2010 to £266.7m (2009: £349.4m). Operating profit dived from 2009’s£45.1m to £12.0m in 2010. Underlying pre-tax profit was £15.3m in 2010 (2009: £50.8m).
Chief executive Tom Haughey said that UK recovery had been delayed and he planned further international diversification, following the co-operation deals signed in India and Saudi Arabia last year.
Mr Haughey said: “Twelve months ago the company had the view that 2010 would be the low point of the cycle for our industry, but UK economic conditions, the public spending review and rising steel costs are likely to prolong the relatively weak levels of activity throughout most of 2011.
“The company's results for 2010 are very creditable in a year of severe trading conditions. The results were supported by the dramatic cost reductions implemented at the end of 2009, which are being followed by current initiatives to further reduce our costs.”
Despite the downturn, Severfield was able to double its UK market share between 2007 and 2010, he said.
Project s last year included The Shard of Glass, the main Olympic Stadium, Blackfriars Bridge and key projects at Heathrow and Gatwick.
Mr Haughey added: “The company's UK order book stands at a very respectable £226m, which includes new London commercial offices and new industrial facility projects.
“The company continues to follow its strategy of international diversification. In January of this year a collaboration agreement was signed with Zamil Industries of Saudi Arabia to improve the company's prospects of involvement in large construction projects in the Middle East. The Indian joint venture company, JSW Severfield Structures Ltd, has grown its order book value to £33m which provides a significant base load for the plant in Bellary. Together with our partner, JSW Steel, we remain positive about realising our growth ambitions in India.”
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