Despite the significant impact of COVID-19 on the 2021 results, the Severfield PLC board is recommending a final dividend of 1.8p per share (2020: 1.8p), payable on 4 September to shareholders on the register at the close of business on 12 August. This together with the interim dividend of 1.1p per share (2020: 1.1p), will result in a total dividend of 2.9p per share (2020: 2.9p), unchanged from the previous year.
Other financial highlights include:
- Revenue up 11% to £363.3m (2020: £327.4m)
- Underlying profit before tax of £24.3m (2020: £28.6m), demonstrates resilience of the Group against COVID-19 backdrop
- Underlying basic earnings per share of 6.4p (2020: 7.7p)
- Acquisition of DAM Structures, an innovative steel fabrication company, giving the Group immediate access to attractive, complementary market sectors with strong growth potential including the propping, railway and steel piling markets
- Good cash generation resulting in year-end cash balances of £25.0m. Net funds (pre-IFRS 16 basis) were £4.4m (2020: £16.4m), including acquisition loans of £20.7m (2020: £13.1m)
- No claims made under COVID-related government schemes, all tax deferrals now fully up to date
- Over 100 projects undertaken during the year in the UK, Ireland and continental Europe in diverse market sectors including industrial and distribution, data centres, nuclear and commercial offices
- UK and Europe order book of £301m at 1 June 2021 (1 November 2020: £287m), including £18m for DAM Structures, of which £241m is for delivery over the next twelve months
- Share of loss from Indian joint venture ('JSSL') of £0.7m (2020: profit of £2.2m), reflecting the COVID-19 impacted loss in H1 and break-even profit position in H2
- India order book of £140m at 1 June 2021 (1 November 2020: £98m), a record high for the company, reflects strong underlying demand for structural steel in India
