Steel specialist’s pre-tax profts fell by 70%, and directors expect the tough climate to continue into 2011
Severfield has reported revenue is down from £349m in 2009, to £267m in 2010 - a fall of 24% - in what was a tough year for the Yorkshire-based steel specialist.
The bad news didn’t stop with its revenue figures, as pre-tax profit at the firm fell by 70%, ending the year at £15.3m, down from £50.8m in 2009.
Severfield also moved from a net cash position of £11.5m at the end of 2009 and ended 2010 with debts of £15m.
Directors expect the tough climate to continue in 2011, before recovering in 2012. In contrast to their earlier forecast of a recovery
in 2011, directors expect the recovery to be led by the industrial, commercial and energy and power markets.
Commenting on the results, Tom Haughey, Severfield’s chief executive, said: “Twelve months ago the company had the view that 2010 would be the low point of the cycle for our industry, but UK economic conditions, the public spending review and rising steel costs are likely to prolong the relatively weak levels of activity throughout most of 2011.”
Despite giving a negative assessment of the sector at present, Severfield’s order book currently stands at £226m, which is an increase of £7m on the £219m that it reported at the end of 2009.