Annual Report 2017

Building from a strong foundation

Our unique offering

Severfield is the UK's market-leading structural steel company.

Number 1

Client focus

We are committed to 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 2

Experience

We have unrivalled experience and capability in the design, fabrication and construction of steel structures. The breadth of expertise in our workforce ensures that we can serve a diverse range of market sectors, positioning us well for future growth.

Number 3

Integrated approach from design to construction

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 4

Scale

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 5

Innovation

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 6

Cost base

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 7

Productivity

Our continued investment in market-leading technology, plant and equipment leads to higher quality products with a shorter turnaround, increasing the productivity of our operations.

Number 8

Supply chain strengths

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

£262.2m

2016: £239.4m

Highlights Revenue

Underlying* profit before tax

£19.8m

2016: £13.2m

Highlights Underlying profit before tax

Underlying* operating margin

7.5%

2016: 5.7%

Highlights Underlying operating margin

Profit before tax

£18.1m

2016: £9.6m

Highlights Profit before tax

Underlying* basic earnings per share

5.53p

2016: 3.67p

Highlights Underlying basic earnings per share

Net funds

£32.6m

2016: £18.7m

Highlights Net funds

Our Chairman's view

John Dodds - Executive Chairman
"2017 has been another year of good progress, both operationally and strategically. We have increased our underlying pre-tax profits by 50 per cent and continued to invest in the business, thereby setting the foundations upon which we will continue to implement our strategy."

John Dodds
Executive chairman

Our strategy

Our vision is to be recognised as world-class leaders in structural steel. We will deliver this vision through the Group's strategy, which is supported by a focus on five key elements.

Press the icons below to see more information on each of our strategic pillars.

Growth

Our aim is to capitalise on growth opportunities both in the UK and in overseas markets and to maximise our market share.

Clients

By understanding, anticipating and responding to client needs we aim to build secure, sustainable and mutually valuable relationships and create lasting client satisfaction.

Operational excellence

Our emphasis is on delivering high quality projects and reducing costs by driving excellence through our core business processes.

People

Our people are at the heart of our business and are vital to the success of our vision and the achievement of our strategic goals.

India

We continue to believe that the Indian market presents great opportunities for steel fabrication.

On track with our target to double underlying profit before tax over the next four years

How we create value

Severfield plc is the UK's market-leading structural steel group, serving the construction and infrastructure markets.

The markets we serve

The Group's strategic focus is to build on our UK market share from construction activities, to enter new market sectors and to widen our geographical spread into Europe and beyond.

Our operating performance

We are well on track with our target to double 2016 underlying profit before tax by 2020.

Alan Dunsmore

Our financial performance

Excellent profit growth has been supported by strong cash generation.

Adam Semple

Key performance indicators

Building a sustainable business

How we manage risk