In the six months to 30 September 2021, Severfield plc generated revenue up 5% to 拢195.9m (2020 H1: 拢186.0m). From this it made a pre-tax profit of 拢7.9m, up 20% from last year (2020 H1: 拢6.6m).
The 拢9m revenue growth predominately reflects six months of additional revenue for Dam Structures, which was acquired in February 2021.
The UK and Europe order book has reached a record high, standing at 拢393m on 1st November 2021. This is up from 拢301m at the beginning of June and 拢376m in September.
Of the 拢393m UK and Europe order book, 95% is in the UK and 拢318m is planned for delivery over the next 12 months.
Orders includes Water Orton Viaducts in the Midlands for HS2, the new stadium for Everton FC, a waste-to-energy facility, several big sheds and further road and rail bridge orders.
It is a more diverse mix than Severfield鈥檚 traditional work profile, with much less commercial building work.
鈥淭he order book remains well-balanced, showcasing the benefits of our strategic diversification over recent years, and contains a healthy mix of projects across the group's key market sectors,鈥� said chief executive Alan Dunsmore.
鈥淔urthermore, whilst the order book is currently at record levels, only 17% of this represents commercial offices, compared to the more normal previous range of 30 to 35% and a peak of c.60% around four years ago, highlighting the success of our strategic diversification,鈥� he added.
On the business outlook, he said: 鈥淭endering activity in UK and Europe remains very encouraging and our pipeline of opportunities spans a wide range of sectors demonstrating the benefits of both the strategic acquisitions and the organic investments we have made in recent years.
鈥淲e are making strong progress in our Indian business and are well-placed to capitalise on this exciting market opportunity as the economy recovers from the pandemic and construction continues to transition from concrete to steel.
鈥淲hile the inflationary outlook and labour market and supply chain pressures present challenges, our strong order book position and operational experience give us confidence for the rest of this year and provide good visibility through FY23.鈥�
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