Despite starting its financial year in April, just after the UK went into lockdown, Severfield emerged unscathed. Its half-year revenue was up 40% to 拢186.0m (2019 H1: 拢131.7m).
Even with Covid-19 impacting the economy, operating profit (before JVs and associates) was up 16% to 拢8.1m (2019 H1: 拢7.0m).
Underlying profit before tax was up 3% to 拢8.4m (2019 H1: 拢8.2m). Actual pre-tax profit, however, was down nearly 20% to 拢6.6m (2019 H1: 拢8.2m)
UK and Europe order book of 拢287m at 1st November 2020 (1st June 2020: 拢271m), includes new nuclear orders secured by Harry Peers, acquired in October 2019 for 拢25m
Chief executive Alan Dunsmore said: 鈥淭he resilience provided by our market sector, geographical and client diversity, together with the actions that we have taken to date have enabled us to navigate well through the challenging conditions of Covid-19. This has resulted in a strong operational performance in the first half of the year.
鈥淲e have a strong balance sheet, good visibility of future earnings from our order books and pipelines, and a strong reputation for delivery of complex projects for our long-standing clients.
鈥淭here is now greater clarity of the extent of the impact of Covid-19 on the current year鈥檚 performance and, on the assumption of no further significant business interruptions arising from any widespread and prolonged secondary lockdown, we expect to improve upon our first half profitability in the second half of the financial year.鈥�
Severfield鈥檚 joint venture in India, JSSL, was more affected by the Covid-19 pandemic than its UK operations, seeing its revenue slump to 拢23.1m, compared to 拢56.3m in the previous period, and a break-even operating margin, compared with 8.5% in the previous period. As a result, Severfield鈥檚 share from it was an after-tax share of loss of 拢700,000.
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