THE boss of Britain's biggest steelwork contractor is prepared to walk away from "big sexy contracts" if the numbers do not add up.

Ian Lawson, chief executive of North Yorkshire-based Severfield, which yesterday reported rising profits, turnover, and margins, said the company was targeting a number of major building contracts to help maintain its momentum. But he insisted that lessons have been learned from mistakes made before he took the helm at Severfield when the company was hit by a string of losses on high profile work, including on London's Cheesegrater skyscraper.

Severfield has played a crucial role in some of Britain's most eye-catching buildings, including The Shard, London 2012 Olympic venues, the Gateshead Millennium Bridge, the Emirates Stadium for Arsenal Football Club, Wimbledon's Centre Court roof and Heathrow Airport.

The company's latest interim results for the six month period ended September 30 showed revenue was up by 20 per cent to £117.1m and underlying profit before tax was £4.8m, compared with £3m in the same period last year. Severfield has a UK order book of £185m and reported "good" cash generation.

“The order book comprises a balance of small and medium-sized projects but we also want some large ones too as they help to support the other work and fill the factory.

"Things are very competitive out there and we do all we can to secure new business, but we are sensible about that and would rather leave it to one of our rivals than take on work just for the sake of it," said Mr Lawson, who expects staff number to rise by about 10 per cent in the year ahead as workloads increase.

The Dalton, near Thirsk business sources about 40 per cent of its steel from UK-based suppliers. Mr Lawson voiced support for the beleaguered domestic industry and said Severfield looked to buy from UK firms whenever possible through its links with Tata Steel as they provided high quality products. He noted that it would be "hugely damaging" for the economy if the domestic steel industry failed to survive through the current crisis. Severfield has also has contacts with overseas suppliers to guarantee workflows.

Mr Lawson added that he hoped the Chancellor has some good news for the construction industry in today's Autumn Statement with confirmation of infrastructure spending to improve Britain's road and rail networks.

Earlier this month Severfield completed its investment in a 50 per cent share of metal decking manufacturer CMF Ltd. The initial consideration for the investment is £4.0m and a further £2.5m is payable over the next five years subject to certain conditions.

“This investment is another step in the implementation of the group's strategy and will strengthen the group's supply chain as well enabling it to extract greater value from its existing activities,” Mr Lawson said.