Fermanagh steel operation reports continued growth in Republic and mainland Europe
THE Co Fermanagh operation of steel giant Severfield has reported a 31 per cent surge in its annual turnover as it continued to significantly grow its business across Ireland and mainland Europe.
Severfield (NI), previously known as Fisher Engineering, increased its turnover by £43 million to £182m for the year ending March 31 2021.
However, rising costs and the impact of Covid-19 left the company with a slightly smaller pre-tax profit in its latest year.
Pre-tax profits slipped six per cent to £16.5m over the 12 months to March 2021. Severfield’s directors said Covid-19 had particularly impacted profitability in the first quarter of 2021.
While its notable recent contracts in Northern Ireland have included the 1,500 tonnes of steel it provided for the signature Titanic Belfast building, the Fermanagh firm’s recent growth appears to largely down to contracts secured across the border and in mainland Europe.
Three years ago, just 13 per cent of Severfield NI’s turnover was sourced from outside the UK.
Over the past year, 75 per cent (£141.4m) of its revenue was derived from the Republic and mainland Europe.
The Ballinamallard-based structural steel specialist, which now employs 341 people, has been involved in a number of massive contracts across the border, including Facebook’s expansion in Clonee, Co Meath.
The reporting period saw Severfield complete its work on the project, which involved supplying almost 10,000 tonnes of steel for the 480-acre campus.
The company’s directors have also reported “a satisfactory order book for 2022”, which they said had instilled confidence in the firm’s outlook.
“The directors are currently witnessing stable activity levels throughout Ireland, the UK and mainland Europe.
“These markets are continually offering a range of new opportunities,” states the report.
“This gives confidence that the company will continue to deliver strong performance in the future by capitalizing on its inherit strengths and long-standing client relationships.”
According to the set of accounts filed with Companies House, the directors at Severfield (NI) recommended paying a dividend of £17m for the latest financial year, up from £10m last year.
The Fermanagh operation, which was acquired by Severfield in 2007, is ultimately owned by Severfield plc, which is based in North Yorkshire.
The UK group has been responsible for keynote projects including The Shard and the Olympic Stadium in London. It also provided the steel for Tottenham Hotspur’s new stadium and most recently won the contract to provide structural steel for Everton’s new £500m stadium in Liverpool’s Bramley-Moore Dock.