Price Target Changed • May 14
Price target decreased by 10% to UK£0.43 Down from UK£0.48, the current price target is an average from 3 analysts. New target price is 69% above last closing price of UK£0.26. Stock is down 18% over the past year. The company is forecast to post earnings per share of UK£0.008 next year compared to a net loss per share of UK£0.047 last year. Board Change • Apr 29
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 1 experienced director. No highly experienced directors. Senior Independent Director Mark Pegler is the most experienced director on the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. New Risk • Mar 19
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 7.4% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. This is currently the only risk that has been identified for the company. Announcement • Jan 02
Severfield plc to Report First Half, 2027 Results on Nov 24, 2026 Severfield plc announced that they will report first half, 2027 results on Nov 24, 2026 Reported Earnings • Dec 04
First half 2026 earnings released: UK£0.019 loss per share (vs UK£0.014 loss in 1H 2025) First half 2026 results: UK£0.019 loss per share (further deteriorated from UK£0.014 loss in 1H 2025). Revenue: UK£206.0m (down 18% from 1H 2025). Net loss: UK£5.56m (loss widened 31% from 1H 2025). Revenue is forecast to grow 7.7% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Construction industry in the United Kingdom. Over the last 3 years on average, the company's share price growth rate has exceeded its earnings growth rate by 69 percentage points per year, which is a significant difference in performance. Announcement • Dec 04
Severfield plc to Report Fiscal Year 2026 Results on Jun 17, 2026 Severfield plc announced that they will report fiscal year 2026 results on Jun 17, 2026 Board Change • Dec 01
High number of new and inexperienced directors There are 6 new directors who have joined the board in the last 3 years. The company's board is composed of: 6 new directors. 1 experienced director. No highly experienced directors. Senior Independent Director Mark Pegler is the most experienced director on the board, commencing their role in 2022. The following issues are considered to be risks according to the Simply Wall St Risk Model: Lack of board continuity. Lack of experienced directors. Announcement • Sep 24
Severfield Appoints Jan Bramall as Interim CFO, Effective from November 1, 2025 Severfield plc announced that it has appointed Jan Bramall as Interim Chief Financial Officer effective from November 1, 2025. Jan Bramall will continue in the role until a permanent CFO is appointed. Jan Bramall has extensive experience and has previously worked as Chief Financial Officer at Manchester Airports Group. The board has initiated a search for a permanent CFO. Announcement • Sep 12
Adam Semple to Step Down as CFO and Leave the Severfield plc at the End of October 2025 Severfield plc announced that after almost eight years as Chief Financial Officer ('CFO'), Adam Semple has agreed with the Board that he will step down from his role as CFO and leave the Group at the end of October 2025. Adam will remain in post to support a smooth handover of his responsibilities during this period. The process to appoint his successor is underway and, whilst the search is conducted, interim arrangements are being finalised. Announcement • Sep 02
Severfield plc to Report First Half, 2026 Results on Nov 25, 2025 Severfield plc announced that they will report first half, 2026 results on Nov 25, 2025 Announcement • Aug 13
Severfield plc Announces Appointment of Paul McNerney as Its New Chief Executive Officer Severfield plc announce the appointment of Paul McNerney as its new Chief Executive Officer following a comprehensive executive search process. Paul will take up this new role in the Autumn, an announcement will be made once a firm start date has been agreed. Paul brings over 25 years of extensive leadership experience within the construction and engineering sector, most notably from his long-standing career with Laing O'Rourke. He is currentlyDirector, Clients and Government atLaing O'Rourke and has previously been Managing Director of the UK construction business,Select Plant Hire, Explore Manufacturing, and Crown House Technologies. He has operated at an enterprise level overseeing strategic commercial leadership and stakeholder management across complex, large-scale projects. Throughout his career, Paul has been instrumental in driving transformation, profitable growth, and operational excellence in construction and in manufacturing. As Managing Director of the UK construction business at Laing O'Rourke, he led a £1.3bn business across key sectors including stadia, healthcare, life sciences, data centres, aviation, and mixed-use developments. He also played a pivotal role in securing and delivering complex schemes such as the Oxford University Humanities campus and Everton's new stadium (both of which were also Severfield projects). Paul's international experience includes establishing infrastructure operations inNew South WalesAustralia, where he led heavy civil and marine projects for Laing O'Rourke, and was key in opening up new business in oil and gas markets. Paul is a Chartered Surveyor by profession, a member of the CBI UK Competitiveness Committee and is currently also a member of the Liverpool - Manchester Railway Partnership Board. Announcement • Aug 07
Severfield plc, Annual General Meeting, Sep 02, 2025 Severfield plc, Annual General Meeting, Sep 02, 2025. Location: ashurst llp, london fruit and wool exchang, 1 duval square, london e1 6pw United Kingdom Reported Earnings • Jul 25
Full year 2025 earnings released: UK£0.047 loss per share (vs UK£0.052 profit in FY 2024) Full year 2025 results: UK£0.047 loss per share (down from UK£0.052 profit in FY 2024). Revenue: UK£450.9m (down 2.7% from FY 2024). Net loss: UK£14.1m (down 189% from profit in FY 2024). Revenue is forecast to grow 5.4% p.a. on average during the next 3 years, compared to a 4.8% growth forecast for the Construction industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 56% per year but the company’s share price has only fallen by 18% per year, which means it has not declined as severely as earnings. New Risk • Jul 24
New major risk - Revenue and earnings growth Earnings have declined by 7.7% per year over the past 5 years. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are declining over an extended period, then in most cases the share price will decline over time unless the company can turn around its fortunes. A trend of falling earnings can be very difficult to turn around. If the company is well already established it may also be a sign the company has matured and is in decline. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings have declined by 7.7% per year over the past 5 years. Minor Risks Share price has been volatile over the past 3 months (8.7% average weekly change). Large one-off items impacting financial results. Profit margins are more than 30% lower than last year (0.7% net profit margin). Announcement • Jul 07
Severfield plc to Report Fiscal Year 2025 Results on Jul 24, 2025 Severfield plc announced that they will report fiscal year 2025 results at 8:00 AM, GMT Standard Time on Jul 24, 2025 Announcement • Jul 02
Severfield plc Announces Termination of Appointment of Alan David Dunsmore as Director on 30 June 2025 Severfield plc announced Termination of appointment of Alan David Dunsmore as a director on 30 June 2025. Major Estimate Revision • Mar 30
Consensus EPS estimates fall by 31%, revenue upgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast increased from UK£449.9m to UK£463.1m. Forecast EPS reduced from -UK£0.026 to -UK£0.034 per share. Construction industry in the United Kingdom expected to see average net income growth of 6.2% next year. Consensus price target of UK£0.50 unchanged from last update. Share price fell 8.4% to UK£0.22 over the past week. Announcement • Mar 27
Severfield PLC Announces Step Down of Alan Dunsmore as Chief Executive Officer, Effective from 30 June 2025 Severfield PLC announced that after more than seven years as Chief Executive Officer ('CEO'), Alan Dunsmore has by mutual consent agreed to step down as CEO and will leave Severfield with effect from 30 June 2025. The Board has initiated a search process to find his successor. Whilst the search is conducted, interim leadership arrangements have been put in place to ensure business continuity. Charlie Cornish (Chair of Severfield) will support and guide the interim executive team led by Rob Evans (Divisional Managing Director of Severfield's largest division, Commercial & Industrial) and Adam Semple (CFO). Major Estimate Revision • Mar 05
Consensus EPS estimates increase by 304%, revenue downgraded The consensus outlook for fiscal year 2025 has been updated. 2025 revenue forecast fell from UK£499.9m to UK£460.1m. EPS estimate rose from UK£0.019 to UK£0.078. Net income forecast to grow 142% next year vs 8.8% growth forecast for Construction industry in the United Kingdom. Consensus price target down from UK£0.87 to UK£0.63. Share price fell 55% to UK£0.22 over the past week. Buy Or Sell Opportunity • Mar 03
Now 51% undervalued after recent price drop Over the last 90 days, the stock has fallen 44% to UK£0.26. The fair value is estimated to be UK£0.53, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 8.1% over the last 3 years. Earnings per share has declined by 14%. Revenue is forecast to grow by 3.2% in 2 years. Earnings are forecast to grow by 570% in the next 2 years. Upcoming Dividend • Jan 02
Upcoming dividend of UK£0.014 per share Eligible shareholders must have bought the stock before 09 January 2025. Payment date: 07 February 2025. The company is paying out more than 100% of its profits and is paying out 97% of its cash flow. Trailing yield: 7.2%. Within top quartile of British dividend payers (5.8%). Higher than average of industry peers (3.0%). Major Estimate Revision • Dec 03
Consensus EPS estimates fall by 75% The consensus outlook for earnings per share (EPS) in fiscal year 2025 has deteriorated. 2025 revenue forecast decreased from UK£537.8m to UK£511.1m. EPS estimate also fell from UK£0.076 per share to UK£0.019 per share. Net income forecast to grow 398% next year vs 6.8% growth forecast for Construction industry in the United Kingdom. Consensus price target down from UK£1.13 to UK£0.95. Share price fell 17% to UK£0.46 over the past week. Reported Earnings • Nov 28
First half 2025 earnings released: UK£0.014 loss per share (vs UK£0.027 profit in 1H 2024) First half 2025 results: UK£0.014 loss per share (down from UK£0.027 profit in 1H 2024). Revenue: UK£252.3m (up 17% from 1H 2024). Net loss: UK£4.25m (down 151% from profit in 1H 2024). Revenue is forecast to grow 3.5% p.a. on average during the next 3 years, compared to a 4.9% growth forecast for the Construction industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 14% per year whereas the company’s share price has fallen by 10% per year. Declared Dividend • Nov 28
First half dividend of UK£0.014 announced Dividend of UK£0.014 is the same as last year. Ex-date: 9th January 2025 Payment date: 7th February 2025 Dividend yield will be 7.3%, which is higher than the industry average of 3.6%. Sustainability & Growth Dividend is not covered by earnings (344% earnings payout ratio) nor is it adequately covered by cash flows (97% cash payout ratio). The dividend has increased by an average of 25% per year over the past 9 years and payments have been stable during that time. The company's earnings per share (EPS) would need to grow by 282% to bring the payout ratio under control. EPS is expected to grow by 211% over the next 3 years, which means the dividend may need to be reduced to reach a sustainable payout ratio. Price Target Changed • Nov 27
Price target decreased by 11% to UK£1.01 Down from UK£1.13, the current price target is an average from 4 analysts. New target price is 98% above last closing price of UK£0.51. Stock is down 18% over the past year. The company is forecast to post earnings per share of UK£0.074 for next year compared to UK£0.052 last year. Announcement • Nov 27
Severfield plc Have Declares an Interim Dividend in Respect of the Six Months Ended 28 September 2024, Payable on 7 February 2025 The directors of Severfield plc have declared an interim dividend in respect of the six months ended 28 September 2024 of 1.4 pence per share (H1 2024: 1.4 pence per share) which will amount to an estimated dividend payment of £4,200,000 (H1 2024: £4,292,000). This dividend is not reflected in the balance sheet as it was declared and will be paid after the balance sheet date, on 7 February 2025 to shareholders on the register at the close of business on 10 January 2025. Buy Or Sell Opportunity • Nov 26
Now 47% undervalued after recent price drop Over the last 90 days, the stock has fallen 32% to UK£0.56. The fair value is estimated to be UK£1.06, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 5.2%. For the next 3 years, revenue is forecast to grow by 5.3% per annum. Earnings are also forecast to grow by 16% per annum over the same time period. Announcement • Nov 11
Severfield plc Appoints Ian McAulay as Non-Executive Director and Workforce Engagement Director and Remuneration, Nomination and Audit Committees with Effect from 25 November 2024 Severfield plc announced the appointment of Ian McAulay as a non-executive director and workforce engagement director with effect from 25 November 2024. Ianwill also serve on the Company's remuneration, nomination and audit committees. Ian brings over three decades of extensive experience in the water, environmental, and utility sectors, having held significant leadership roles in both publicly quoted FTSE 100/250 companies and privately held enterprises, both in the UK and internationally. His leadership roles have included serving as CEO of Southern Water and Viridor. He has also made significant contributions in a non-executive capacity as a member of Greater Manchester Authorities Low Carbon Hub Board and the Scottish Government's 2020 Climate Change Board. His current roles are as non-executive chair of Isla Utilities Limited (a utilities innovation consultancy business) and Papilo Limited (a waste management company) and as a non-executive director at Scottish Water. Announcement • Nov 08
Severfield plc Appoints Janice Crawford as Non-Executive Director and to Its Remuneration, Nomination and Audit Committees with Effective November 25, 2024 Severfield plc announced the appointment of Janice Crawford as a non-executive director with effect from 25th November 2024. Janice will also serve on the Company's remuneration, nomination and audit committees. Janice Crawford is a Chartered Engineer and has had a career stretching from an apprentice in a Glasgow shipyard (where she was the first female apprentice in a British shipyard) to executive and board posts for international engineering and project delivery companies. She is a Fellow of the Institution of Mechanical Engineers and became a Fellow of the Royal Academy of Engineering in 2013. Janice has worked in diverse international companies in the petrochemical, oil and gas, LNG, mining and pharmaceutical related industries, and up until April 2022, Janice was the Director Global Capital Projects for Johnson Matthey, the FTSE 100 global science and chemical company. Janice also served as a Non-Executive Director of the Health and Safety Executive Board for five years. Janice is currently a non-executive director at National Energy System Operator Limited, the organisation which brings together eight activities required to deliver the plans, markets and operations of the energy system of and the future. Announcement • Oct 16
Severfield plc Announces the Appointment of Cynthia Gordon as Non-Executive Director, Effective 21 October 2024 Severfield plc announced the appointment of Cynthia Gordon as a non-executive director with effect from 21 October 2024. She will chair the Company's remuneration committee, taking over from Louise Hardy, who will leave the Board, as previously announced, after a short handover on 31 October 2024. Cynthia will also serve on the Company's nomination and audit committees. Cynthia is currently a non-executive director and remuneration committee chair at Bodycote plc, the FTSE 250 global industrial services company,non-executive chair of Global Fashion Group,a Luxembourg-based ecommerce company listed in Frankfurtand a non-executive director of Eutelsat Communications SA,a satellite operator listed in Paris. She also acts as a senior advisor to Tillman Global Holdings, an investor in infrastructure businesses and was formerly a non-executive director at Tele2 and Kinnevik. As an executive director, Cynthia worked at a number of companies, including Millicom, Ooredoo and Orange. She was CEO of Millicom Africa responsible for six countries, and was also Group Commercial Director at Ooredoo, with responsibility for commercial performance across 15 countries. Board Change • Oct 04
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 3 non-independent directors. Independent Chairman of the Board Charlie Cornish was the last independent director to join the board, commencing their role in 2024. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Aug 29
Upcoming dividend of UK£0.023 per share Eligible shareholders must have bought the stock before 05 September 2024. Payment date: 11 October 2024. Payout ratio is a comfortable 71% and this is well supported by cash flows. Trailing yield: 4.5%. Lower than top quartile of British dividend payers (5.4%). Higher than average of industry peers (2.9%). Announcement • Aug 09
Severfield plc Appoints Mark Pegler as Its Senior Independent Director Severfield plc announced the appointment of Mark Pegler as its Senior Independent Director (SID). Mark is chair of the audit committee and joined the Board in 2022. Board Change • Aug 02
Less than half of directors are independent Following the recent departure of a director, there are only 2 independent directors on the board. The company's board is composed of: 2 independent directors. 4 non-independent directors. Independent Non-Executive Director Mark Pegler was the last independent director to join the board, commencing their role in 2022. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Announcement • Aug 02
Severfield plc Declares Final Dividend for the Year Ended March 30, 2024, Payable on October 11, 2024 Severfield plc at its AGM held on July 30, 2024 declared a final dividend of 2.3p per ordinary share in respect of the year ended 30 March 2024 payable on 11th October 2024 to shareholders on the register at the close of business on 6 September 2024. Buy Or Sell Opportunity • Jul 31
Now 22% undervalued Over the last 90 days, the stock has risen 17% to UK£0.80. The fair value is estimated to be UK£1.02, however this is not to be taken as a buy recommendation but rather should be used as a guide only. Revenue has grown by 10% over the last 3 years. Earnings per share has grown by 5.2%. For the next 3 years, revenue is forecast to grow by 6.3% per annum. Earnings are also forecast to grow by 18% per annum over the same time period. Declared Dividend • Jun 21
Final dividend increased to UK£0.023 Dividend of UK£0.023 is 9.5% higher than last year. Ex-date: 5th September 2024 Payment date: 11th October 2024 Dividend yield will be 4.9%, which is higher than the industry average of 3.6%. Sustainability & Growth Dividend is covered by both earnings (71% earnings payout ratio) and cash flows (34% cash payout ratio). The dividend has increased by an average of 25% per year over the past 9 years and payments have been stable during that time. EPS is expected to grow by 57% over the next 2 years, which should provide support to the dividend and adequate earnings cover. Reported Earnings • Jun 20
Full year 2024 earnings released: EPS: UK£0.052 (vs UK£0.07 in FY 2023) Full year 2024 results: EPS: UK£0.052 (down from UK£0.07 in FY 2023). Revenue: UK£463.5m (down 5.8% from FY 2023). Net income: UK£15.9m (down 26% from FY 2023). Profit margin: 3.4% (down from 4.4% in FY 2023). The decrease in margin was driven by lower revenue. Revenue is forecast to grow 7.2% p.a. on average during the next 3 years, compared to a 4.6% growth forecast for the Construction industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 5% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. New Risk • Apr 17
New minor risk - Share price stability The company's share price has been volatile over the past 3 months. It is more volatile than 75% of British stocks, typically moving 7.6% a week. This is considered a minor risk. Share price volatility indicates the stock is highly sensitive to market conditions or economic conditions rather than being sensitive to its own business performance, which may also be inconsistent. It also increases the risk of potential losses in the short term as the stock tends to have larger drops in price more frequently than other stocks. Currently, the following risks have been identified for the company: Minor Risks Unstable dividend paying track record with dividend experiencing an annual drop of over 20% in the past. Share price has been volatile over the past 3 months (7.6% average weekly change). Buy Or Sell Opportunity • Apr 17
Now 40% overvalued after recent price rise Over the last 90 days, the stock has risen 11% to UK£0.64. The fair value is estimated to be UK£0.46, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 7.2%. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 14% in the next 2 years. Board Change • Feb 16
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 4 highly experienced directors. Independent Non-Executive Director Mark Pegler was the last director to join the board, commencing their role in 2022. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Announcement • Feb 12
Severfield plc Announces Resignation of Rosie Toogood as Non- Executive Director Severfield plc, announced that Rosie Toogood, a non- executive director of the Company, will be leaving the Board of the Company on 12 February 2024. She has taken up a new senior executive role at Wates Group, who are a major customer of the Group, and it has been agreed that, in those circumstances, in order to avoid a conflict of interest, she will step down. Buy Or Sell Opportunity • Jan 30
Now 21% overvalued Over the last 90 days, the stock has fallen 3.2% to UK£0.60. The fair value is estimated to be UK£0.49, however this is not to be taken as a sell recommendation but rather should be used as a guide only. Revenue has grown by 11% over the last 3 years. Earnings per share has grown by 7.2%. Revenue is forecast to grow by 19% in 2 years. Earnings are forecast to grow by 15% in the next 2 years. Upcoming Dividend • Dec 28
Upcoming dividend of UK£0.014 per share at 5.5% yield Eligible shareholders must have bought the stock before 04 January 2024. Payment date: 02 February 2024. Payout ratio is a comfortable 51% and this is well supported by cash flows. Trailing yield: 5.5%. Lower than top quartile of British dividend payers (5.8%). Higher than average of industry peers (3.6%). Reported Earnings • Nov 24
First half 2024 earnings released: EPS: UK£0.027 (vs UK£0.027 in 1H 2023) First half 2024 results: EPS: UK£0.027 (in line with 1H 2023). Revenue: UK£215.3m (down 8.4% from 1H 2023). Net income: UK£8.36m (down 1.7% from 1H 2023). Profit margin: 3.9% (up from 3.6% in 1H 2023). The increase in margin was driven by lower expenses. Revenue is forecast to grow 8.7% p.a. on average during the next 3 years, compared to a 3.3% growth forecast for the Construction industry in the United Kingdom. Over the last 3 years on average, earnings per share has increased by 7% per year but the company’s share price has fallen by 2% per year, which means it is significantly lagging earnings. Announcement • Nov 21
Severfield plc Declares Interim Dividend in Respect of the Six Months Ended 23 September 2023, Payable on 2 February 2023 Severfield plc have declared an interim dividend in respect of the six months ended 23 September 2023 of 1.4 pence per share (2023: 1.3 pence per share) which will amount to an estimated dividend payment of £4,300,000 (2023: £4,013,000). This dividend is not reflected in the balance sheet as it was declared and will be paid after the balance sheet date, on 2 February to shareholders on the register at the close of business on 5 January. Announcement • Sep 07
Severfield plc Declares Final Dividend for the Year Ended March 25, 2023, Payable on October 13, 2023 Severfield plc at its AGM held on September 6, 2023 declared a final dividend of 2.1p per ordinary share in respect of the year ended 25 March 2023 payable on 13th October 2023 to shareholders on the register at the close of business on 8 September 2023. Announcement • Sep 06
Severfield plc to Report First Half, 2023 Results on Nov 21, 2023 Severfield plc announced that they will report first half, 2023 results on Nov 21, 2023 Upcoming Dividend • Aug 31
Upcoming dividend of UK£0.021 per share at 5.0% yield Eligible shareholders must have bought the stock before 07 September 2023. Payment date: 13 October 2023. Payout ratio is a comfortable 49% and this is well supported by cash flows. Trailing yield: 5.0%. Lower than top quartile of British dividend payers (6.3%). Higher than average of industry peers (3.9%). Announcement • Aug 08
Severfield plc, Annual General Meeting, Sep 06, 2023 Severfield plc, Annual General Meeting, Sep 06, 2023, at 09:00 Coordinated Universal Time. Board Change • Aug 03
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Independent Non-Executive Director Rosie Toogood was the last independent director to join the board, commencing their role in 2021. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Reported Earnings • Aug 02
Full year 2023 earnings: EPS exceeds analyst expectations Full year 2023 results: EPS: UK£0.07 (up from UK£0.051 in FY 2022). Revenue: UK£491.8m (up 22% from FY 2022). Net income: UK£21.6m (up 38% from FY 2022). Profit margin: 4.4% (up from 3.9% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 2.4%. Revenue is forecast to grow 6.7% p.a. on average during the next 3 years, compared to a 3.1% growth forecast for the Construction industry in the United Kingdom. Over the last 3 years on average, earnings per share has remained flat whereas the company’s share price has increased by 5% per year. Announcement • Aug 01
Severfield plc Announces Board Changes Severfield plc announced that Tony Osbaldiston, a non-executive director of the Company and chair of the audit committee, is retiring July 31, 2023 from the Board of the Company following the completion of his nine-year tenure. He is succeeded as audit committee chair by Mark Pegler who was appointed as a non-executive director on 3rdOctober 2022. Announcement • Jul 26
Severfield plc Announces Resignation of Ian Cochrane as an Executive Director on 30 September 2023 Severfield plc announced that Ian Cochrane, an executive director of the company, will be leaving the company on 30 September 2023. He is leaving to pursue other interests and the role of COO is not being replaced, rather COO duties are being re-assigned to other executive directors and the senior leadership team. New Risk • Jun 18
New major risk - Revenue and earnings growth Earnings are forecast to decline by an average of 0.6% per year for the foreseeable future. This is considered a major risk. Ultimately, shareholders want to see a good return on their investment and that generally comes from sharing in the company's profits. If profits are expected to decline, then in most cases the share price will decline over time as well. In addition, if the company pays dividends it will also likely need to reduce or cut them, striking a dual blow to total shareholder returns. Currently, the following risks have been identified for the company: Major Risk Earnings are forecast to decline by an average of 0.6% per year for the foreseeable future. Minor Risk Dividend is not well covered by cash flows (245% cash payout ratio). Reported Earnings • Jun 17
Full year 2023 earnings: Revenues in line with analyst expectations Full year 2023 results: Revenue: UK£491.8m (up 22% from FY 2022). Net income: UK£26.2m (up 68% from FY 2022). Profit margin: 5.3% (up from 3.9% in FY 2022). The increase in margin was driven by higher revenue. Revenue was in line with analyst estimates. Revenue is forecast to grow 7.0% p.a. on average during the next 3 years, compared to a 3.2% growth forecast for the Construction industry in the United Kingdom. Announcement • Jun 14
Severfield plc Announces Dividend for the Year 2023, Payable on 13 October 2023 Severfield plc recommending a final dividend of 2.1p per share (2022: 1.9p), payable on 13 October 2023 to shareholders on the register at the close of business on 8 September 2023. Upcoming Dividend • Dec 29
Upcoming dividend of UK£0.013 per share Eligible shareholders must have bought the stock before 05 January 2023. Payment date: 03 February 2023. Payout ratio is a comfortable 52% and the cash payout ratio is 91%. Trailing yield: 5.1%. Lower than top quartile of British dividend payers (5.8%). Higher than average of industry peers (3.7%). Reported Earnings • Nov 23
First half 2023 earnings released: EPS: UK£0.027 (vs UK£0.017 in 1H 2022) First half 2023 results: EPS: UK£0.027 (up from UK£0.017 in 1H 2022). Revenue: UK£234.9m (up 20% from 1H 2022). Net income: UK£8.51m (up 65% from 1H 2022). Profit margin: 3.6% (up from 2.6% in 1H 2022). The increase in margin was driven by higher revenue. Revenue is forecast to grow 3.2% p.a. on average during the next 3 years, while revenues in the Construction industry in the United Kingdom are expected to remain flat. Over the last 3 years on average, earnings per share has fallen by 3% per year whereas the company’s share price has fallen by 7% per year. Board Change • Oct 02
Insufficient new directors There is 1 new director who has joined the board in the last 3 years. The company's board is composed of: 1 new director. 2 experienced directors. 6 highly experienced directors. Independent Non-Executive Director Rosie Toogood was the last director to join the board, commencing their role in 2021. The company’s insufficient board refreshment is considered a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Sep 01
Upcoming dividend of UK£0.019 per share Eligible shareholders must have bought the stock before 08 September 2022. Payment date: 14 October 2022. Payout ratio is a comfortable 61% but the company is not cash flow positive. Trailing yield: 5.3%. Lower than top quartile of British dividend payers (5.5%). Higher than average of industry peers (3.7%). Reported Earnings • Aug 14
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: UK£0.051 (down from UK£0.056 in FY 2021). Revenue: UK£403.6m (up 11% from FY 2021). Net income: UK£15.6m (down 9.8% from FY 2021). Profit margin: 3.9% (down from 4.8% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.3%. Earnings per share (EPS) missed analyst estimates by 13%. Over the next year, revenue is forecast to grow 11%, compared to a 5.2% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 2% per year. Reported Earnings • Jun 15
Full year 2022 earnings: Revenues exceed analysts expectations while EPS lags behind Full year 2022 results: EPS: UK£0.051 (down from UK£0.056 in FY 2021). Revenue: UK£403.6m (up 11% from FY 2021). Net income: UK£15.6m (down 9.8% from FY 2021). Profit margin: 3.9% (down from 4.8% in FY 2021). The decrease in margin was driven by higher expenses. Revenue exceeded analyst estimates by 3.3%. Earnings per share (EPS) missed analyst estimates by 11%. Over the next year, revenue is forecast to grow 4.4%, compared to a 5.1% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 6% per year whereas the company’s share price has fallen by 4% per year. Price Target Changed • May 04
Price target increased to UK£1.12 Up from UK£1.01, the current price target is an average from 6 analysts. New target price is 63% above last closing price of UK£0.69. Stock is down 13% over the past year. The company is forecast to post earnings per share of UK£0.057 for next year compared to UK£0.056 last year. Upcoming Dividend • Dec 02
Upcoming dividend of UK£0.012 per share Eligible shareholders must have bought the stock before 09 December 2021. Payment date: 07 January 2022. Trailing yield: 4.3%. Within top quartile of British dividend payers (4.1%). Higher than average of industry peers (2.1%). Reported Earnings • Nov 25
First half 2022 earnings: EPS exceeds analyst expectations First half 2022 results: EPS: UK£0.017 (vs UK£0.017 in 1H 2021). Revenue: UK£195.9m (up 5.3% from 1H 2021). Net income: UK£5.17m (flat on 1H 2021). Profit margin: 2.6% (down from 2.8% in 1H 2021). The decrease in margin was driven by higher expenses. Revenue was in line with analyst estimates. Earnings per share (EPS) surpassed analyst estimates by 12%. Earnings per share (EPS) surpassed analyst estimates by 12%. Over the next year, revenue is forecast to stay flat compared to a 5.7% growth forecast for the industry in the United Kingdom. Over the last 3 years on average, earnings per share has fallen by 5% per year whereas the company’s share price has fallen by 2% per year. Board Change • Aug 08
Less than half of directors are independent Following the recent departure of a director, there are only 4 independent directors on the board. The company's board is composed of: 4 independent directors. 5 non-independent directors. Senior Independent Director Alun Griffiths was the last independent director to join the board, commencing their role in 2020. The company's minority of independent directors is a risk according to the Simply Wall St Risk Model. Upcoming Dividend • Aug 05
Upcoming dividend of UK£0.018 per share Eligible shareholders must have bought the stock before 12 August 2021. Payment date: 03 September 2021. Trailing yield: 3.6%. Lower than top quartile of British dividend payers (3.9%). Higher than average of industry peers (2.1%). Reported Earnings • Aug 04
Full year 2021 earnings released: EPS UK£0.056 (vs UK£0.067 in FY 2020) The company reported a soft full year result with weaker earnings and profit margins, although revenues improved. Full year 2021 results: Revenue: UK£363.3m (up 11% from FY 2020). Net income: UK£17.3m (down 15% from FY 2020). Profit margin: 4.8% (down from 6.2% in FY 2020). The decrease in margin was driven by higher expenses. Over the last 3 years on average, earnings per share has fallen by 2% per year and the company’s share price has also fallen by 2% per year. Recent Insider Transactions Derivative • Jul 02
CEO & Director exercised options and sold UK£105k worth of stock On the 28th of June, Alan Dunsmore exercised options to acquire 134k shares at no cost and sold these for an average price of UK£0.78 per share. This trade did not impact their existing holding. For the year to March 2020, Alan's total compensation was 41% salary and 59% other compensation. This indicates that these sales could comprise a meaningful part of their income for the year. Since September 2020, Alan has owned 1.27m shares directly. Company insiders have collectively sold UK£282k more than they bought, via options and on-market transactions in the last 12 months.