Severfield is the UK's market-leading structural steel company, respected for delivering world-class engineering and design excellence. We have unrivalled experience and capability in the design, fabrication and construction of steel structures. The breadth of technical expertise in our workforce ensures that we can serve our diverse range of market sectors, positioning us well for future growth.
Our inputs
Resources
The Group can offer great choice, value and flexibility thanks to our network of factories and the technical expertise of our people. Severfield is the largest structural steel business in the UK and one of the largest in Europe, with an expanding presence in India, providing unrivalled capacity and capability, allowing us to share our expertise across a wide range of market sectors to deliver cost-effective and innovative steel structure solutions.
The Group is equipped with the latest state-of-the-art manufacturing and painting processes and has a highly skilled workforce of around 1,800 staff, including an in-house construction team. We have the design and engineering skills to serve a diverse range of market sectors. The dedication, expertise and experience of our workforce ensure that we offer more skills and variety than any other UK steel contractor.
Partners
The Group spends a high percentage of its operating costs on goods and subcontractor services. Careful management of the supply chain is essential to drive efficiency, and suppliers are monitored to ensure that maximum benefits are delivered to clients through contracting processes. Our framework of robust risk management and control ensures that challenges are mitigated, allowing us to deliver all projects to the highest possible standard. We engage with clients and the supply chain wherever we operate, and long-term relationships are forged with partners who meet our commitment to quality, sustainability and excellent client service.
Commitment to health and safety
The wellbeing and safety of our employees, clients, suppliers and subcontractors are paramount and directly impact on the commercial viability of our business. The directors, through the implementation of our safety, health and environmental philosophy, encourage each employee and subcontractor to strive constantly to adopt the best safety, health and environmental practices.
Innovation
Innovative thinking is integral to our approach, giving us flexibility in how we deliver projects for our clients. This means that our business can easily adapt to the trends across all the sectors that we serve. Our business model is based on a virtuous cycle of growth, investment and innovation.
Focus on sustainability
As a market leader in structural steel, we recognise that operating in a sustainable manner is crucial to both the current and future success of the Group. The Group is committed to behaving responsibly and conducting business with openness, honesty, and integrity – motivating and enabling our people and our supply chain to deliver high quality, innovative buildings in a sustainable and efficient way. This enables us to continually invest in our business in order to preserve our ability to generate value in the short, medium and long term.
Our value proposition
Our customers
Clients serviced by the Group cover a broad range of disciplines. We are committed to delivering outstanding customer service at every stage of the project to our broad range of clients. We draw upon our industry experience to allow us to tailor our products and services. An essential part of project delivery is understanding our clients' requirements and aspirations. This builds secure, sustainable, and mutually valuable relationships, creating lasting client satisfaction.
Why they work with us
Severfield has a strong history of delivering iconic and unique structures. Our competitive advantage derives from our client focus, operational excellence, benefits of scale, integrated approach from design to construction, innovation and our strong focus on driving growth.
We aim to leverage our skills and experience in these areas to allow us to better understand our customers' own needs and work with them to provide world-class steel solutions. We approach every project with the same level of professionalism, commitment, care, safety and customer service.
We manage every aspect of the fabrication and construction process, from initial design, through detailing, specification and manufacture, to the eventual handover of a quality product on-site.
By engaging with our clients in the design stage, we can add value throughout the project life cycle. Our in-house design and construction teams work closely together to create the most efficient and safest solutions that match our clients' needs.
Our services
The design process offers our clients innovative concepts and solutions. We are able to offer 'value engineering' through the close guidance of our consulting engineers at the concept of the project and with the assistance of the latest state-of-the-art computer software for 2D and 3D building information modelling ('BIM'), analysis and design.
Our advice on material choices, fabrication, fire protection, surface treatment and construction techniques can often lead to significant project savings, efficiencies and embedded sustainability improvements.
Our engineers are also involved in temporary works to suit site construction and 'buildability' issues. Working closely with the Group's in-house construction team, we ensure the most efficient and safest solutions for our clients' needs. This expertise is essential for high-rise towers and other complex structures undertaken by the Group.
The Group's fabrication facilities include expansive stockyard areas and in-line cutting, fabrication, welding and painting and some of the largest finished goods and sub-assembly areas in the industry.
Operational investment has been significant and continuous over the years, with many innovative features being developed and incorporated. Modern, state-of-the-art processing equipment has been employed with full consideration for design, supporting layout, logistics, integration and construction.
Our equipment is fed with numerical control data which optimises output and minimises waste and errors.
The FABSEC® production line at Dalton is a fully self-contained production facility. The process provides the structural steelwork sector with a full range of highly efficient plated sections, optimal section profiles and shop-applied intumescent coatings.
The Group has its own highly trained construction workforce which provides services for all of its construction requirements. Working closely with the project management team, they are leaders in steel construction and utilise the latest equipment on-site. The Group is an industry leader in construction methodology.
The Group also has a large and highly experienced contract management team. Each contract manager is the single point of contact with each client and is supported by all resources within the Group. Our contract managers engage with our clients and the supply chain to ensure optimum communication and performance in all aspects of the project, including site construction and administration. The Group's operational improvement programme, the objective of which is to improve risk assessment and operational and contract management processes, is central to the generation of value.
SUPPORTED BY A VIRTUIOUS CYCLE OF:
Our value generation
Our activities generate the following types of long-term value:
For our shareholders
All of the Group's consolidated revenue and profits are generated from the design, fabrication and construction of structural steelwork and its related activities.
Our state-of-the-art manufacturing facilities have been established to generate profit and surplus cash flow. Steel purchases are only made for secured contracts in order to maximise working capital positions.
Good cash generation and balance sheet management provide a solid foundation for the Group.
Close management of our contracts and cost base is critical to our success, particularly in winning new contracts, reinvesting in our business and seeking further opportunities for growth.
The Group has a progressive dividend policy. We invest in capital projects and market-leading technology to drive sustainable growth. Alongside our targeted strategies for growth and operational excellence, our business model illustrates the Group's clear plan to develop and increase our market share and maximise shareholder returns.
For our customers
We approach every project, from the highly technical to basic structural work, with the same level of safety, professionalism, commitment, care and customer service.
Alongside our industry-leading customer service is our continued focus on product range development, to ensure our products meet the ever-changing needs of our customers.
For our employees
We are committed to matters of health and safety, sustainability, ethics and staff engagement. We ensure our employees are trained so they are skilled and qualified for their occupation and therefore can contribute to performance.
We offer our engaged and talented employees stable and secure employment in a growing business and with opportunities to develop and progress.
For our society
We are committed to minimising our impact on the environment and local communities, as well as maintaining sustainable practices in all our disciplines.
Our sustainability framework is embedded into our purpose and corporate strategy to help us achieve our vision. Carbon reduction is an important strategic objective for the Group and we are committed to protect and enhance the environment, and to limit the environmental impact of our operations on the planet so it can support the needs of the current and future generations.
A commitment to our own Group charity, the Severfield Foundation, which supports local charities to help us give back to society.
8.5p
Underlying basic earnings per share (2022: 7.2p)
3.4p
Total dividend per share (2022: 3.1p)
£491.8m
Revenue in 2023 (2022: £403.6m)
£99.5m
Paid in employee benefits in 2023 (2022: £86.0m)
33%
Reduction in carbon emissions since 2018 baseline