Severfield PLC shares rose on Wednesday after the company reported an increase in annual revenue, supported by higher steel prices, and upped its payout to shareholders.

Shares were up 5.0% at 63.00 pence each on Wednesday morning in London.

The Thirsk, England-based structural steelmaker posted a pretax profit of £21.0 million in the financial year that ended March 26, down 0.5% from £21.1 million the year before.

Net finance expenses jumped 50% to £1.8 million from £1.2 million, and operating costs rose 12% to £382.1 million from £340.6 million.

More positively, revenue grew 11% in financial 2022 to £403.6 million from £363.3 million in financial 2021.

The company attributed this to higher steel prices and a full-year revenue contribution from DAM Structures, which it acquired in February 2021.

Severfield backed its expectations for financial 2023.

Looking ahead, the company expects to make further progress this year.

‘Although inflation and supply chain pressures remain, we are managing these well and the earnings visibility gives us confidence in maintaining our positive performance expectations for 2023,’ Chief Executive Alan Dunsmore commented.

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