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Building from a strong foundation
Annual report and accounts for the year ended 31 March 2018
Download the PDF of the annual report
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.
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.
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.
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.
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.
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.
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.
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.
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274.2m
( 2017:£262.2m )
£23.5m
( 2017:£19.8m )
8.3%
( 2017:7.5% )
£22.2m
( 2017:£18.1m )
6.4p
( 2017:5.5p )
£33.0m
( 2017:£32.6m )
On track to achieve £26m underlying profit before tax in 2020
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.
EPS growth was 15%
Revenue has increased by 5%, reflecting an increase in order flow, activity and steel prices
Cash conversion is slightly below the 85% target following the unwind of advance payments in the year
ROCE has improved by 1.9% and continues to exceed the 10% target
The UK order book has increased by 3% since June 2017
The AFR remains within the Group’s target for 2018 of 0.26
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.
Improve how we deliver our projects with speed, efficiency and accuracy.
Continue our relentless focus on safety and always think 'safety first'.
Focus on working sustainably and reducing our energy consumption.
The Group has delivered another year of strong profit growth.
We have a strong and flexible balance sheet which underpins our plans for the future.