Structural steel producer Severfield has seen a dip in its sales despite reporting a record order book in its key markets as the demand for steel in major infrastructure projects continues to boom.
The London-listed group, which is headquartered in Thirsk, achieved a pre-tax profit of £23m in the 12 months ending March 30, 2024, down from just over £27m the period prior.
Its revenue also dipped slightly to £463.5m from £491.8m, which the group said was due to “softer market conditions”.
As of June 1, 2024, the group said it had an order book of £478m, which “includes a higher proportion of European orders” as it continues to focus on diversifying its offering.
This included record orders in India of £181m, up from £165m as of November 1, 2023.
Severfield CEO Alan Dunsmore said: “We are delighted to be reporting another strong performance by the Group, with our profits ahead of expectations.
“This is the result of an excellent operational performance and the success of our strategy to diversify the sectors and geographies we serve.
“This has enabled us to deliver enhanced returns for shareholders through our recent share buyback scheme, building on our ten consecutive years of progressive dividends.
“Looking ahead, we have strong order books in the UK, Europe and India which are providing us with good earnings visibility through 2025 and beyond.
“With market conditions showing signs of improvement and with our businesses well-placed in markets that are expected to benefit from positive long term growth trends, which are unlikely to be impacted by the result of the upcoming UK general election, we are confident in the outlook for the business.”
In March 2023 Severfield bought Dutch constructional steelwork contractor Voortman Steel Construction for €24m (£20m), helping it diversify from its home market in the UK.
It added that the growing focus on major projects “which can mitigate the impacts of climate change and deliver energy security,” such as Sizewell C, HS2 and Northern Powerhouse Rail, would provide it with a steady stream of work in the years ahead.