Severfield PLC on Wednesday said its yearly profit and revenue grew by double digits, driven by increased activity.
The North Yorkshire, England-based structural steel group said pretax profit for the year ended March 25 climbed by 29% to £27.1 million from £21.0 million a year before.
Revenue for the year was £491.8 million, up 22% from £403.6 million a year prior. This was driven by increased activity from the Indian joint-venture, JSSL, which produced a record output of 100,000 tonnes.
Severfield recommended a final dividend of 2.1 pence per share, up 11% from 1.9p per share the year before. This resulted in a total dividend of 3.4p per share, up 9.8% from 3.1p in financial 2022.
Looking ahead, Severfield said pipeline opportunities in the UK and Europe ‘continue to have a favourable outlook.’ The company added that its recent acquisition of Voortman Steel Construction Holding BV, which it bought for €24 million, is on track to be earnings enhancing in 2024. Despite falling inflation, Severfield remains ‘mindful’ of the macroeconomic backdrop.
Chief Executive Officer Alan Dunsmore said: ‘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.’
Shares in Severfield were up 9.7% at 67.12 pence each in London on Wednesday morning.
Copyright 2023 Alliance News Ltd. All Rights Reserved.
