Severfield PLC on Wednesday said it intends to launch a share buyback programme as it continued to see large project opportunities.
It appointed a new chair who will take over at the end of July.
The North Yorkshire, England-based structural steel group said it made good progress during the second half of its financial year that ended on March 30.
On the back of its progress, the company said it intends to launch a £10 million share buyback programme to return surplus capital to shareholders and reduce its share capital.
Severfield expects to report a full year results slightly above its own previous expectations. In its most recent financial results report in November for the first half ended September 23, the company had said that market conditions in the UK and Europe remained challenging, while its business in India was well-positioned to take advantage of significant growth opportunities.
The company said Wednesday: ‘We continue to see large project opportunities in both our Commercial and Industrial division and Nuclear and Infrastructure division, in the UK, continental Europe and Ireland. These include projects in support of a low-carbon economy such as battery plants, energy efficient buildings, manufacturing facilities for renewable energy and offshore wind projects.’
Further, it said: ‘In our Modular Solutions division, we have maintained our focus on growing our Severstor product ranges, which attract higher margins, and on developing our growing pipeline of opportunities, including in growth areas such as renewable energy and data storage.’
Severfield added: ‘The group is performing well, the outlook is positive and our businesses are well-positioned in markets with excellent long-term growth opportunities. Whilst there remains some uncertainty in the wider economy, we are seeing an improvement in market conditions which, together with our high-quality order books, diversified activities and operational delivery capabilities, provides us with confidence for the year ahead.’
The company said it appointed Charlie Cornish as new chair. He will join the board on May 1 and take over as chair after the annual general meeting on July 30. Cornish is the current chair of Manchester Airport Holdings Ltd, Core Highways Group Ltd and Ipsum Group Ltd.
Severfield shares rose 15% to 62.00 pence each on Wednesday morning in London.
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