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Severfield (LSE: SFR)

Currency in GBP

Last close As at 30/11/2023

GBP0.63

▲ 1.00 (1.62%)

Market capitalisation

GBP194m

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

Severfield — FY24 in line, but risks edge up further on

Industrials | Update

Severfield — FY23 results highlight progress and strength

Industrials | Update

Severfield — Revenue visibility and growth underappreciated

Industrials | Update

Severfield — Constructing a robust future at a low rating
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Sector

Industrials

Equity Analyst

Andy Murphy

Andy Murphy

Director, Financials & Industrials

Key Management

  • Adam Semple

    CFO

  • Alan Dunsmore

    CEO

Balance Sheet

Forecast net debt (£m)

30.1

Forecast gearing ratio (%)

13

Share Price Performance

Price Performance
% 1M 3M 12M
Actual 4.3 (9.3) (0.3)
Relative 1.4 (8.8) 1.3
52 week high/low 75.0p/57.4p

Financials

Severfield’s AGM statement highlights that FY24 is expected be in line with management expectations and that the quality of the orderbooks – both in the UK and Europe, and India – remains a key support for the future. That said, the outlook for the UK and continental Europe is less robust in the short term than it was due to the impact of high inflation and the rising interest rate cycle. The FY24e P/E rating of c 7x remains comfortably below the long-term average of 10.0x, implying that some risk is discounted in the rating. The stock yields more than 5%.

Y/E Mar Revenue (£m) EBITDA (£m) PBT (£m) EPS (fd) (p) P/E (x) P/CF (x)
2022A 403.6 33.4 27.1 7.00 8.9 4.8
2023A 491.8 40.4 32.5 8.61 7.3 4.3
2024E 566.5 45.0 35.2 8.92 7.0 3.8
2025E 589.2 47.5 37.5 9.46 6.6 3.6

Research

Update

Industrials

Severfield — FY23 results highlight progress and strength

Update

Industrials

Severfield — Revenue visibility and growth underappreciated

Industrials

Update

Severfield — FY24 in line, but risks edge up further on

Update

Industrials

Severfield — Constructing a robust future at a low rating

Update

Industrials

Severfield — Trading robust with lowest P/E since GFC

Update

Industrials

Severfield — Strong H2 performance and order book growth

Update

Industrials

Severfield — Order book development shows the way

Outlook

Industrials

Severfield — Positive start to FY22

Update

Industrials

Severfield — Solid end to FY21

Update

Industrials

Severfield — Expanding into adjacent steelwork sectors

Update

Industrials

Severfield — Robust position, encouraging outlook
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