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Steel specialist Severfield has warned funding and cost concerns are leading to delays on major projects, in improved half-year results published today.

Severfield said three 鈥渟trong prospects鈥� worth collectively over 拢100m had 鈥渂een subject to material delays or in one case cancellation鈥� before they converted to orders, due to 鈥渁vailability of funding and cost concerns鈥�.

The firm said it consequently retained 鈥渁n element of caution鈥� around the UK pipeline, but said it nonetheless had a 鈥渟trong pipeline of opportunities鈥�.

In its results, the firm posted an 84% increase in pre-tax profit to 拢3.2m for the six months to September 2015, up from 拢1.7m the previous year, while revenue jumped 20% to 拢117.1m, up from 拢97.4m.

Severfield鈥檚 underlying operating margin - which strips out finance and exceptional costs - increased to 4.3%, up from 3.7%. The firm said a 鈥渃ontinued focus鈥� on improving tendering and operational processes had boosted its margin.

Speaking to 好色先生TV, Severfield chief executive Ian Lawson (pictured) said he thought the run of delays on projects caused by cost and funding issues was a 鈥渂lip鈥�, saying: 鈥淚t鈥檚 probably a crossover from when everybody was in recession pricing at the cheapest price and now moving towards where prices have risen.鈥�

He added: 鈥淲hat鈥檚 happened is the clients have been working to a cost budget that has been worked out for them by their advisers and the clients have then gone out to the market and the market has then priced the work and come back higher than what was budgeted so therefore the clients are then having to reassess their development.鈥�

Lawson said the firm will 鈥渁bsolutely鈥� bid for work on the next generation of nuclear power stations, including Hinkley Point C in Somerset and Wylfa in Anglessey. He said the firm is also bidding for work on Tottenham Hotspurs鈥� new stadium - where Mace was appointed construction manager this week - and the revamp of Wimbledon Court No 1 - which was won by Sir Robert McAlpine last week.

Remedial works to replace structural bolts on British Land鈥檚 Leadenhall 好色先生TV after a small number failed 鈥渃ontinues to progress in line with planned costs and times鈥�, the firm said, with discussions ongoing 鈥渂etween all parties involved to establish where final liability for the remedial works should rest鈥�.

Commenting on the Leadenhall 好色先生TV situation, Lawson said: 鈥淚 would hope that once all the works are finished we鈥檒l then have a sensible sit down and a sensible conversation.鈥�

The firm鈥檚 share of losses on its Indian steel joint venture reduced to 拢0.1m, down from 拢0.3m the previous year, which the frim said reflected 鈥済ood production levels, stronger mix and continued operational improvements鈥�.

The UK and India order books stood at 拢185m and 拢35m respectively, down from 拢194m and 拢38m.

Severfield won a string of major contracts over the period, including commercial office developments at Kings Cross and Hanover Square and industrial and distribution projects for DHL, BAE Systems and Jaguar Land Rover.

It also picked up the Port of Liverpool biomass terminal and the Victoria and Albert Museum in Dundee.

Earlier this month the firm completed a 50% investment in metal decking supplier Composite Metal Flooring. The group is also considering factory improvements to support its bridge activities following the recruitment of the bridge team from Mabey Bridge.