Steelwork contractor hoping for 10% margins from new modular business
The country’s biggest steelwork contractor saw revenue edge closer to the £500m mark buoyed by high-profile work on Everton’s new stadium, bridges for HS2 and the huge battery production plant Wates is building in Sunderland.
Severfield said income was up to £492m, a rise of 22%, in the year to 25 March with pre-tax profit up a third to £27m.
The firm is working on the new Everton stadium job being built by Laing O’Rourke and is also working on jobs at Canada Water, the mixed-use scheme being built by Wates and Mace for British Land, and the ExCeL Centre in Docklands, the next stage of which will be built by McLaren.
It has also won several bridge jobs for the HS2 railway for teams led by Balfour Beatty and Kier while its newly created modular business is looking at revenue of £100m in the medium-term and margins in excess of 10%.
Severfield’s India business, the joint venture with local firm JSW which has been up and running for 15 years, saw turnover increase 37% to £138m and the firm hike pre-tax profit up from £1.9m to £3.6m.
The firm said its order book in the UK and Europe was £510m at the beginning of this month and £139m for its India operation.
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