Our unique offering

number one

We are committed to providing outstanding customer service. An essential part of project delivery is understanding our clients’ requirements and aspirations. This builds secure, sustainable and mutually valuable relationships and creates lasting client satisfaction.


number two

Severfield is the UK’s market-leading structural steel company, respected for delivering world-class engineering and design excellence. We have unrivalled experience and capability in the design, fabrication and construction of steel structures. The breadth of technical expertise in our workforce ensures that we can serve a diverse range of market sectors, positioning us well for future growth.

number three

By engaging with our clients in the design stage, our understanding of their requirements is enhanced and adds value throughout the project life-cycle. Our in-house design and construction teams work closely together to create the most efficient and safest solutions that match our clients’ needs.


number four

Severfield is the largest structural steel business in the UK and one of the largest in Europe, with a growing presence in India, providing unrivalled capacity and capability.

number five

Innovative thinking is integral to our approach, giving us flexibility in how we deliver projects for our clients. This means that our business can easily adapt to the trends across all the sectors that we serve.


number six

Our operational improvement programme involves close management of our cost base. This has generated steady margin improvement, keeps our offering competitive and allows us to reinvest in the business.

number seven

Our disciplined use of capital for investment in market-leading technology, plant and equipment leads to higher quality products with a shorter turnaround, increasing the productivity of our operations. Alongside our targeted strategies for growth and operational excellence, we have a clear plan to develop and increase our market share and maximise shareholder returns.


number eight

Careful management of the supply chain is an essential part of improving efficiency. We are well positioned to manage any change in UK steel supply. We choose supply chain partners who match our expectations in terms of quality, sustainability and commitment to client service.

Our year

Revenue

274.2m

( 2017:£262.2m )

Revenue Chart

Underlying* profit before tax

£23.5m

( 2017:£19.8m )

Underlying profit before tax

Underlying* operating margin

8.3%

( 2017:7.5% )

Underlying operating margin chart

Profit before tax

£22.2m

( 2017:£18.1m )

Profit before tax chart

Underlying* basic earnings per share

6.4p

( 2017:5.5p )

Underlying* basic earnings per share

Net funds

£33.0m

( 2017:£32.6m )

Net funds chart

Q&A with chief executive officer Alan Dunsmore

Alan Dunsmore

Our strategy

On track to achieve £26m underlying profit before tax in 2020

Building a strong foundation

Key performance indicators

Underling operating profit and margin

Underlying* operating profit and margin (before JVs and associates)

Underlying operating profit (before JVs and associates) has increased by 17%, reflecting increased revenues and an increase in the margin of 0.8%

* The basis for stating results on an underlying basis is set out on our year.

Underling basic earnings per share

Underlying* basic earnings per share (‘EPS’)

EPS growth was 15%

* The basis for stating results on an underlying basis is set out on our year.

Revenue growth

Revenue growth

Revenue has increased by 5%, reflecting an increase in order flow, activity and steel prices

Operating cash
conversion

Operating cash conversion

Cash conversion is slightly below the 85% target following the unwind of advance payments in the year

Return on capital employed (‘ROCE’)

Return on capital employed (‘ROCE’)

ROCE has improved by 1.9% and continues to exceed the 10% target

Order book

Order book

The UK order book has increased by 3% since June 2017

Accident frequency rate (‘AFR’)

Accident frequency rate (‘AFR’)

The AFR remains within the Group’s target for 2018 of 0.26


Smarter, Safer, more Sustainable

Smarter, Safer, more Sustainable, our business improvement programme, represents the consolidation of all of the Group's ongoing improvement projects, established to help us in achieving the Group's overall strategy.

Smarter

Improve how we deliver our projects with speed, efficiency and accuracy.

Safer

Continue our relentless focus on safety and always think 'safety first'.

More Sustainable

Focus on working sustainably and reducing our energy consumption.


Our operating performance

The Group has delivered another year of strong profit growth.

Alan Dunsmore

Our financial performance

We have a strong and flexible balance sheet which underpins our plans for the future.

Adam Semple