Turnover for the year to the end of March 2024 was 拢463.5m, down 6% on the previous year (拢491.8m) and pre-tax profit fell by 15%, from 拢27.1m last year to 拢23m this year.
However chief executive Alan Dunsmore said that, despite a softening in market conditions, the company has maintained a strong order book with 拢478m-worth of contracts secured in the UK and another 拢181m of work in India, where it has a joint venture with Indian partner JSW Steel.
Severfield has enjoyed strong growth in recent years thanks to major contracts on projects including Hinkley Point C nuclear power station and the new Everton FC stadium.
鈥淭he group delivered further underlying profit growth in 2024 against a backdrop of some challenging market conditions, particularly in the UK,鈥� said Dunsmore.
鈥淭he combination of our significant market sector, geographical and client diversification, the strength of our operations and management teams, our expert capabilities in engineering and construction and our strong financial position underpin the performance and resilience of the group.鈥�
Underlying operating profit rose by 13% to 拢36.5m (2023: 拢32.5m) driven partly by the acquisition last year of Dutch steelwork firm VSCH which gives Severfield greater access to a growing European market.
鈥淚n 2024, our Indian joint venture, JSSL, recorded output of more than 100,000 tonnes, including sub-contracted work, for the second year running,鈥� said Dunsmore. 鈥淭his high level of activity, an improved mix of work and good contract execution is evident in the group鈥檚 higher after-tax share of profit of 拢1.9m (2023: 拢1.3m), which reflects a record EBITDA of 拢13.2m.鈥�
JSSL recently acquired a site in Gujarat and plans to start building a new factory there in the second half of this year. 聽
Got a story? Email news@theconstructionindex.co.uk
