Severfield - Edison Group

Overview
Price performance
Financials
Research
Thematics

Severfield is the market-leading UK structural steelwork fabricator operating across a broad range of market sectors. An Indian facility undertakes structural steelwork projects for the local market in a joint venture with India’s largest steel producer, JSW Steel.

The primary strategic aim is to maintain Severfield’s position as the leading UK structural steelwork supplier. JSSL targets 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.

Latest Insights

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Industrials |
Update

27.06.24

Severfield — Poised for expansion

Industrials |
Update

21.06.24

Severfield — Performing well with improving outlook

Industrials |
Flash note

17.04.24

Severfield — Multiple positives should excite investors

Industrials |
Update

14.12.23

Severfield — FY24 expectations unchanged, order book robust

Sector

Industrials

Equity Analyst

Andy Murphy

Director, Financials & Industrials

Key Management

Adam Semple

CFO
Alan Dunsmore

CEO

Balance Sheet

Forecast net debt (£m)

22.3

Forecast gearing ratio (%)

10

Share Price Performance

Price Performance
%	1M	3M	12M
Actual	5.5	7.3	35.4
Relative	9.2	10.0	25.3
52 week high/low	89.0p/50.0p

Financials

The highlight of Severfield’s FY24 results was the 14% increase in underlying operating profit despite declining revenue. This gives a clue to the increasing quality of earnings as the company captures future projects and benefits from its internal digitalisation programme, Project Horizon. Furthermore, the Indian JV rapidly improved profit and is expanding capacity to meet growing demand. The balance sheet offers scope for both the £10m share buyback and potential M&A. Our forecasts are unchanged, and we have introduced FY27 estimates. The FY24 AGM statement confirmed trends.

Y/E Mar	Revenue (£m)	EBITDA (£m)	PBT (£m)	EPS (fd) (p)	P/E (x)	P/CF (x)
2023A	491.8	40.4	32.5	8.61	10.2	6.0
2024A	463.5	46.1	36.5	9.49	9.3	5.0
2025E	528.4	46.0	36.0	9.42	9.3	5.0
2026E	539.0	50.2	39.8	10.61	8.3	4.5

Research

Update

Industrials

28.04.22

Severfield — Strong H2 performance and order book growth

Update

Industrials

01.12.21

Severfield — Order book development shows the way

Industrials

Update

Severfield — Trading robust with lowest P/E since GFC

Outlook

Industrials

10.09.21

Severfield — Positive start to FY22

Update

Industrials

27.04.21

Severfield — Solid end to FY21

Update

Industrials

03.03.21

Severfield — Expanding into adjacent steelwork sectors

Update

Industrials

08.12.20

Severfield — Robust position, encouraging outlook

Update

Industrials

04.09.20

Severfield — Improved Q2 trading pattern continues

Update

Industrials

13.07.20

Severfield — Momentum to be informed by order intake

Update

Industrials

23.04.20

Severfield — FY20 in line, COVID-19 muddies trading outlook

Outlook

Industrials

04.02.20

Severfield — Strategically well placed to grow

Update

Industrials

04.10.19

Severfield — Harry Peers deal enhances earnings

Update

Industrials

10.09.19

Severfield — Stable outlook

Update

Industrials

27.06.19

Severfield — Converting orders into profitability

Update

Industrials

29.04.19

Severfield — Good end-FY19 order book momentum

Update

Industrials

06.12.18

Severfield — Developing in line with expectations

Update

Industrials

05.09.18

Severfield — Good, balanced UK trading, India orders growing

Update

Industrials

28.06.18

Severfield — Progress made, more expected

Outlook

Industrials

11.12.17

Severfield — Strength in diversity

Update

Industrials

12.09.17

Severfield — Reassurance and encouragement

Update

Industrials

19.06.17

Severfield — Delivering against strategy

Update

Industrials

07.12.16

Severfield — Update 7 December 2016

Update

Industrials

18.07.16

Severfield — Update 18 July 2016

Update

Industrials

03.05.16

Severfield — Update 3 May 2016

Update

Industrials

18.02.16

Severfield — Update 17 February 2016

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