Published on: February 26, 2021
Acquisition gives first class ticket for rail spend
Britain’s leading structural steel specialist has acquired specialist fabricator DAM Structures for £12m and up to £15m in deferred and contingent considerations. This should take Severfield further up the value chain in major infrastructure programmes such as HS2 and rail electrification over the next decade and Severfield expects it to become earnings-accretive in FY 2022E. We raise adj EPS estimates for FY 2022E and 2023E by 6.2% and 5.6% respectively and expect the Group to remain in net cash both years.