Severfield Full Year Results - 26 March 2022

Full Year Results

26 March 2022

Severfield Full Year Results - 26 March 2022

Alan Dunsmore

Chief Executive Officer

2

Severfield Full Year Results - 26 March 2022

A compelling investment case

Exciting growth prospects

  • Aligned to sectors with strong growth potential in UK and Europe
  • Significant opportunity to grow profits in India

Built on a platform of operational excellence

  • Continued momentum from operational improvement initiatives
  • Well invested business with >£50m CAPEX over last eight years

All underpinned by a strong

focus on sustainability

  • Internal roadmap to net zero by 2040
  • Top UK construction business in FT climate change listing

Resilient business

through economic cycles

  • Sector, geographical and client diversity
  • Good earnings visibility from record order book and strong pipeline

Delivering strong returns,

cash generation and progressive dividend

  • Five year average ROCE >15%
  • Typically convert >85% of profits into cash

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Severfield Full Year Results - 26 March 2022

Resilient profit performance

PBT £m

30

28.6

27.1

25

24.7

24.3

23.5

20

19.8

Six year CAGR 13%

15

13.2

10

Brexit, COVID-19, and inflationary pressures

2016

2017

2018

2019

2020

2021

2022

  • Combined profits of over £160m in the last 7 years

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Severfield Full Year Results - 26 March 2022

Headlines

  • Revenue up 11% to £403.6m
  • Underlying profit before tax up 11% to £27.1m - demonstrates our resilience in challenging market conditions
  • Net debt of £18.4m - reflects normalisation of working capital, inflation and higher steel purchases
  • Record UK and Europe order book of £486m - good earnings visibility through 2023
  • Return to profitability for India - group share of profit of £0.8m
  • Strong and growing India order book of £158m
  • Underlying basic EPS up 12% at 7.2p per share
  • Total dividend up 7% to 3.1p per share
  • Expectations for 2023 are unchanged despite current inflationary pressures

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Disclaimer

Severfield plc published this content on 16 June 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 20 June 2022 12:13:01 UTC.