Severfield (SFR)

Business description

Severfield is a leading UK structural steelwork fabricator operating across a broad range of market sectors. An Indian facility currently undertakes structural steelwork projects for the local market and is fully operational.

Investment summary

Strong H118 results and positive order book development cause us to raise estimates, especially for the current year with better dividend prospects also. UK economic uncertainty will provide challenges but we believe that Severfield’s sector diversity and some pipeline project opportunities should allow the company to continue to grow. Further order book gains and the application of surplus cash balances (via investment or distribution) can be catalysts for further share price recovery.

Last updated on 11/12/2017

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (p) P/E (x) P/CF (x)
2016A 239.4 18.9 13.7 3.8 21.8 10.0
2017A 262.2 25.7 20.3 5.7 14.6 9.1
2018E 273.9 29.3 24.0 6.6 12.6 10.5
2019E 279.2 30.2 24.6 6.7 12.4 8.7

Last updated on 11/12/2017

Latest video

Executive Interview - Severfield

Industry outlook

The primary strategic aim is to maintain Severfield’s position as the leading UK structural steelwork supplier. An Indian JV (established in 2010) is fully operational and targeting similar sectors to those served in the UK. Management has valued the Indian construction market at c £100bn pa, with a very low penetration of steel structures currently.

Last updated on 02/11/2017

Key management

John Dodds, Chairman
Ian Lawson , CEO
Alan Dunsmore, FD

Company address

Dalton Airfield Industrial Estate
Thirsk, North Yorkshire
United Kingdom
01845 577896
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