Severfield Rowan (SFR)

[m06een00]

This is a company that seems unloved and has a high div yield, currently over 6%, with cover > 2x. It also has net cash of £2.71m. But SFR does not include leases in net debt. Adding in long and short-term leases gives net debt of £10.7m. But net gearing is still a low 4.91%

At the moment the share is at a 15 month low for no apparent reason. Using the last FY results (31 March 2023), most of the metrics show that SFR has made a full recovery since the 2 previous weaker Covid years and is positive about the future.

Here is a 5 year summary of results. (Don't know how to line this up)

2023 2022 2021 2020 2019

Revenue 491,753 403,563 363,254 327,364 274,917
Underlying PBT 32,478 27,098 24,321 28,621 24,711
Profit attributable to shareholders 21,724 15,601 17,304 20,415 20,162

Assets Employed
2023 2022 2021 2020 2019
Fixed Assets 228,397 230,054 230,076 203,783 163,033
Net Current Assets 27,572 17,383 22,247 21,068 33,135
Non-Current Liabilities -38,251 -43,477 -61,394 -41,176 -21,161
Net Assets 217,718 203,960 190,929 183,675 175,007

EPS and Dividends
(pence/share)
2023 2022 2021 2020 2019
Basic EPS 6.97 5.05 5.63 6.68 6.65
Diluted EPS 6.90 5.03 5.63 6.64 6.58
Dividends/share 3.40 3.10 2.90 2.90 2.80

Share Price – year high 75.49 84.80 79.90 96.00 88.20
Share Price –year low 49.65 62.60 51.20 57.20 64.60

[tjh290633]

There is a formatting tool available at https://lemonfoolfinancialsoftware.weeb ... ormat.html

If your data is in a spreadsheet or a PDF file, you should be able to use the [pre] option, ideally with 3 spaces replacing the vertical line which is a default.

TJH

[m06een00]

This is a company that seems unloved and has a high div yield, currently over 6%, with cover > 2x. It also has net cash of £2.71m. But SFR does not include leases in net debt. Adding in long and short-term leases gives net debt of £10.7m. But net gearing is still a low 4.91%

At the moment the share is at a 15 month low for no apparent reason. Using the last FY results (31 March 2023), most of the metrics show that SFR has made a full recovery since the 2 previous weaker Covid years and is positive about the future.

Here is a 5 year summary of results.

[MDW1954]

Thank you. SFR looks interesting, if small. And thank you for taking the trouble to re-format your table -- as you can see, it makes it much more readable!

MDW1954

[simoan]

This is a company that seems unloved and has a high div yield, currently over 6%, with cover > 2x. It also has net cash of £2.71m. But SFR does not include leases in net debt. Adding in long and short-term leases gives net debt of £10.7m. But net gearing is still a low 4.91%

At the moment the share is at a 15 month low for no apparent reason. Using the last FY results (31 March 2023), most of the metrics show that SFR has made a full recovery since the 2 previous weaker Covid years and is positive about the future.

Here is a 5 year summary of results.

I’m not sure your numbers are quite right with regard to the net cash position according to the HY24 results released in November where the company said:

Net funds (pre-IFRS 16 basis) at 23 September 2023 were £0.4m (25 March 2023: £2.7m). This included cash balances of £25.7m (25 March 2023: £11.3m) and outstanding term loans of £25.5m (25 March 2023: £8.9m) which include the acquisition loan for VSCH of £18.0m (25 March 2023: £nil). Operating cash flow for the period before working capital movements was £19.0m (H1 2023: £15.9m). Net working capital has decreased by £15.6m during the period mainly reflecting an improvement in underlying working capital of £5.6m and new advance payments in H1 (£10.0m). Excluding total advance payments of £20.0m, which were secured on a large project, period-end net working capital represented approximately five per cent of revenue, within our normal range of four to six per cent (net working capital including advance payments was two per cent of revenue). We continue to expect an outflow from working capital in H2 as the remaining advance payments unwind.

Anyway, we’re in the wrong forum to discuss this further, other than to say the company was confident enough about the future to increase the 2024 interim dividend by 8%. Severfield is an interesting value situation, although highly exposed to the vicissitudes of UK infrastructure spending.

[m06een00]

I’m not sure your numbers are quite right with regard to the net cash position according to the HY24 results released in November where the company said. . . .

My figures refer to the FY 2023 report, not the interim 2024. See my OP ('using the last FY results 31 March 2023').

[simoan]

I’m not sure your numbers are quite right with regard to the net cash position according to the HY24 results released in November where the company said. . . .

My figures refer to the FY 2023 report, not the interim 2024. See my OP ('using the last FY results 31 March 2023').

Yes, but if you're going to quote cash or debt figures in a post you should always use the most recent information from the company, particularly since the situation can change quickly over a six month period.