A STEEL contractor has reiterated a £26m profit target as stellar contracts and recovering geographies provide a platform for growth.

Severfield says it remains confident of achieving its financial goal by 2020, with domestic demand augmenting re-emerging Irish and European projects.

The business, based at Dalton Airfield Industrial Estate, near Thirsk, North Yorkshire, has several lucrative deals in its order book, including £20m-plus agreements to provide steelwork for Tottenham Hotspur’s new 61,559-seat stadium and a retractable roof for Wimbledon’s No 1 Court tennis arena.

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Bosses have long said they wish to double underlying pre-tax profit to £26m by 2020 and latest results, released today (Tuesday, November 21), show it is making progress.

According to the figures, for the six-month period to September 30, underlying pre-tax profit was more than £4m higher than a year ago at £12.9m, with pre-tax profit £4.1m better off at £11.5m.

Revenue came in stronger at £137.1m as an increase in production and rising steel prices helped the business’ progress and pushed its UK order book to £245m at November 1.

Alan Dunsmore, acting chief executive, said the company, which delivered the 800-tonne Gateshead Millennium Bridge, was gaining greater confidence and traction towards its £26m profit target, highlighting opportunities in numerous sectors and territories.

“The UK market continues to appear stable and the pipeline for potential future orders remains good,” he said.

“We have identified a number of significant new potential projects across the commercial office, retail, industrial and distribution, and infrastructure sectors.

“In addition, the group continues to see the re-emergence of the market in the Republic of Ireland, as well as potential opportunities in Europe.

“With a high-quality order book of £245m and a strong UK pipeline of opportunities, the outlook remains very good.

“The underlying strength of the business and its performance in the first half of the financial year remains consistent with our continued progress towards delivering our 2020 strategic profit target of £26m.”

The company’s UK division previously supplied steelwork for London’s 2012 Olympic Games Stadium and The Shard skyscraper, however, Mr Dunsmore said it is now making progress with an Indian odyssey too.

The venture, which previously secured deals to deliver a technology centre near Delhi and two industrial projects in the state of Maharashtra, which includes the capital Mumbai, had an order book of £79m at November 1.

“The joint venture continued to grow (in the period),” added Mr Dunsmore.

“We remain confident in the long-term development of the business and believe it is well-positioned to take advantage of an improving local economy.”