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2007 Annual Report
Introduction - Another Great Year
On behalf of the Board I am delighted to report that the Group
performed extremely well in 2007 with all of our core businesses
yet again delivering record productivity and customer service, and
producing record results.
In spite of the challenging global financial market conditions
towards the end of the year, the financial strength of
Severfield–Rowen combined with increasing demand for the
Group’s differentiated services underline our confidence in the
Group’s long-term growth prospects.
Overview - Further Growth
In 2007 underlying operating profit (before amortisation of acquired intangible assets of £2.2 million and the movement in valuation of derivative financial instruments of £2.39 million) increased by 46.6% to a record £42.68 million (2006: £29.12
million) on increased revenue of £300.7 million (2006: £295.1
million).
The underlying operating margin increased to 14.2%
(2006: 9.9%).
These impressive results were largely due to our
quality service level, underpinned by a focus on prime projects.
All of our core businesses performed strongly with a focus on highmargin, prime projects.
Accordingly, underlying profit before tax was 41.8% higher at £42.9 million (2006: £30.3 million) producing a 39.4% increase in underlying basic earnings per share of 35.74p (2006: 25.64p).
The underlying profit before tax margin increased to 14.3% (2006: 10.3%).
Retained profit after tax was £26.4 million (2006: £20.9 million).
The Group’s net assets increased to £116.8 million (2006: £66.2 million).
Following the funding of the Fisher Engineering acquisition and the purchase of the Dalton Property, we ended the year with net borrowings of £48.1 million (2006: net funds £38.2 million).
We increased our leading position in the structural steel industry
and are involved in many significant projects and developments.
We are particularly pleased that all of the Company’s core subsidiaries in 2007, namely Severfield–Reeve Structures, Watson
Steel Structures, Atlas Ward Structures, Rowen Structures, Fisher
Engineering and Steelcraft Erection Services, contributed to our
record results.
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