Severfield (SFR)

Sector:

Engineering

Index:

FTSE Small Cap

87.00p
   
  • Change Today:
      2.40p
  • 52 Week High: 87.00p
  • 52 Week Low: 61.00p
  • Currency: UK Pounds
  • Shares Issued: 303.95m
  • Volume: 59,838
  • Market Cap: £264.44m
  • RiskGrade: 172

Severfield pays out as cash swells in line with infrastructure demand

By Iain Gilbert

Date: Wednesday 20 Jun 2018

LONDON (ShareCast) - (Sharecast News) - Structural steel manufacturer Severfield sees a stable market in the UK, predicting modest growth thanks to a good pipeline of potential future orders.
Severfield, which is contributing products to those constructing Tottenham Hotspur's new stadium, posted a 5% increase in revenue to £274.2m for the trading year to 31 March, while underlying profit jumped 19% to £23.5m and pre-tax profits moved ahead 22% to £22.2m.

Severfield highlighted a "strong" cash performance, closing out the period with net funds of £33m after a £5.5m equity investment in an Indian joint venture.

The London-listed firm pointed to numerous significant projects that are carrying over into the new financial year, such as the Spurs stadium, a retractable roof over Wimbledon's No 1 court and a new commercial office tower at 22 Bishopsgate, plus a pipeline that includes commercial offices, data centres and infrastructure. It noted that there was a considerable desire for data centres and industrial orders in particular, including two Amazon warehouses.

Among the 100 or so projects with which it was involved during the year, Severfield was also awarded a £50m project for Google back in December and will supply the tech giant with 15,000 tonnes of structural steelwork for its new eleven storey head office building.

As of 1 June, Severfield's UK order book was sitting at £237m, but the company was continuing to look further ahead, specifically eyeing off UK government projects, ranging from HS2 stations and bridges, all the way to a potential expansion of Heathrow airport.

The order book, of which £200m is for delivery over the next 12 months, remains in line with normal levels, which typically equate to eight to ten months of annualised revenue. "This provides us with good visibility of earnings into the next financial year and supports continued progress towards our strategic targets." Further forward, the company reported seeing growing demand from Ireland, where it has historically had a strong presence.

Severfield upped its total dividend for the year by 13%, with a proposed final dividend of 1.7p per share taking the annual dividend to 2.6p.

As of 1040 BST, Severfield shares had grown 5.29% to 86.12p.

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Note 1: Prices and trades are provided by Digital Look Corporate Solutions and are delayed by at least 15 minutes.

Note 2: RiskGrade figures are provided by RiskMetrics.

 

Severfield Market Data

Currency UK Pounds
Share Price 87.00p
Change Today 2.40p
% Change 2.84 %
52 Week High 87.00p
52 Week Low 61.00p
Volume 59,838
Shares Issued 303.95m
Market Cap £264.44m
RiskGrade 172

Severfield Star Ratings

Compare performance with the sector and the market.
more star ratings
Key: vs Market vs Sector
Value
14.22% above the market average14.22% above the market average14.22% above the market average14.22% above the market average14.22% above the market average
35.14% above the sector average35.14% above the sector average35.14% above the sector average35.14% above the sector average35.14% above the sector average
Price Trend
67.53% above the market average67.53% above the market average67.53% above the market average67.53% above the market average67.53% above the market average
41.46% above the sector average41.46% above the sector average41.46% above the sector average41.46% above the sector average41.46% above the sector average
Income
50.00% above the market average50.00% above the market average50.00% above the market average50.00% above the market average50.00% above the market average
58.33% above the sector average58.33% above the sector average58.33% above the sector average58.33% above the sector average58.33% above the sector average
Growth
2.07% below the market average2.07% below the market average2.07% below the market average2.07% below the market average2.07% below the market average
73.68% below the sector average73.68% below the sector average73.68% below the sector average73.68% below the sector average73.68% below the sector average

What The Brokers Say

Strong Buy 3
Buy 0
Neutral 0
Sell 0
Strong Sell 0
Total 3
strong_buy
Broker recommendations should not be taken as investment advice, and are provided by the authorised brokers listed on this page.

Severfield Dividends

  Latest Previous
  Interim Final
Ex-Div 12-Dec-19 15-Aug-19
Paid 10-Jan-20 13-Sep-19
Amount 1.10p 1.80p

Trades for 17-Jan-2020

Time Volume / Share Price
16:35 4,455 @ 87.00p
16:18 20,233 @ 83.20p
16:16 400 @ 86.80p
16:04 436 @ 83.20p
15:45 1,000 @ 84.00p

Severfield Key Personnel

COO Ian Cochrane
CEO Alan Dunsmore
Finance Director Adam Semple

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