Severfield (SFR)

Severfield SFR Logo

A UK based structural steel work company engaged in the construction and infrastructure contract business, consisting of commercial offices, industrial and distribution, stadia and leisure, retail, and data centers and others.

21-Nov-2017 – 64.5p – £202.6m – PER 10.5

Interim Results For The Period To End September 2017 – Revenue up 16% to £137.1m, PBT up 59% to £12.8m, Interim dividend up 29%, Order book up 10% at £245m – Full year results expected to be comfortably ahead of expectations.

Quite like this and tempted at this level. Looking for negatives, there is a £20m Pension Deficit but there’s also Net Cash of £32.4m. As I say, quite liking this.

Subsequent Note: This is cheap here and although it may be affected by a downturn – The government is surely still going to spend on infrastructure.

14-Dec-2017 – 73p – £218.7m – PER 11.1

Awarded Landmark Contract For Google’s UK Headquarters – “This contract win adds to our recently announced strong order book of £245m and supports Severfield’s position as the market leader with unrivaled design, fabrication and construction capabilities”.

Quite a lot to like here – It’s on my Watchlist around the 67p level.

11-Apr-2018 – 73.5p – £220.3m – PER 11.0

Trading Update For The 6 Months To End March 2018 – In-line.

Remains on my Watchlist at 67p for now.

4-Sep-2018 – 76p – £231.0m – PER 11.0

AGM Trading Update – In-line. UK Order book at £210m, in September (£237m in June) in-line with normal levels (8 – 10 months of Annual Revenue). In India it’s up to £128m (from £106m) and capacity is being increased.

There’s still a lot to like here and although it still looks slightly under-priced I am going to take this from my Watchlist for now and go Neutral.

25-Apr-2019 – 74p – £225m – PER 10.2

Trading Update For The 12 Months To End March 2019 – In-line with an Order book that is up from £230m in November 2018 to £274m (1 April 2019). Net Cash is down from £33m to £25m.

As always, quite a lot to like here, still probably some value too, considering the Net Cash and 4% or so Yield – It’s just not enough for me though at present.

19-Jun-2019 – 72p – £219m – PER 9.9

Results For The 12 Months To End March 2019 – Revenue flat, Underlying PBT and EPS both up 5%, Total Dividend up 8%, Order Book seems to be up 25%+, still on track to double PBT to £26m by 2020.

Still quite a lot to like here and still probably some value too considering the Net Cash and 4% or so Yield – Will keep an eye out for revised Broker notes as that Order Book increase looks quite significant.

3-Sep-2019 – 62p – £188m – PER 8.5

Trading Update – Outlook unchanged.

Still quite like this and probably some value here considering the Net Cash and 5% or so Yield, just not enough for me at present.

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