(Alliance News) - Severfield PLC on Wednesday said its yearly profit and revenue grew by double digits, driven by increased activity.

The North Yorkshire, England-based structural steel group said pretax profit for the year ended March 25 climbed by 29% to GBP27.1 million from GBP21.0 million a year before.

Revenue for the year was GBP491.8 million, up 22% from GBP403.6 million a year prior. This was driven by increased activity from the Indian joint-venture, JSSL, which produced a record output of 100,000 tonnes.

Severfield recommended a final dividend of 2.1 pence per share, up 11% from 1.9p per share the year before. This resulted in a total dividend of 3.4p per share, up 9.8% from 3.1p in financial 2022.

Looking ahead, Severfield said pipeline opportunities in the UK and Europe "continue to have a favourable outlook." The company added that its recent acquisition of Voortman Steel Construction Holding BV, which it bought for EUR24 million, is on track to be earnings enhancing in 2024. Despite falling inflation, Severfield remains "mindful" of the macroeconomic backdrop.

Chief Executive Officer Alan Dunsmore said: "We reported record revenue, delivered underlying profits ahead of expectations and secured a significant value of new, high-quality work across all our geographies. This demonstrates the success of our strategy to diversify the sectors and geographies we serve, reflects the high-quality of our operations, and is testament to the talent and commitment of our people."

Shares in Severfield were up 9.7% at 67.12 pence each in London on Wednesday morning.

By Sabrina Penty, Alliance News reporter

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