The structural steel group reported revenue increased to £239.4 million from £201.5 million in 2015.
In addition, underlying profit before tax was up 59% to £13.2m (2015: £8.3m).
With its UK order book at its highest level for over six years (£270m), Chief Executive Officer Ian Lawson said the company was "well placed" to continue towards its near-term financial targets.
"Severfield has had a strong year with excellent revenue and profit growth and a good cash performance," he said.
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"Our increased profitability is as a result of our focus on operational improvements and efficiencies over the last three years and with the strength of the platform from which the Group now operates and the opportunity for further margin improvement, our target is now to double our underlying profit before tax over the next four years."
Mr Lawson added: "We continue to enjoy a large element of repeat business from customers such as Mace, Brookfield, Sir Robert McAlpine and Laing O’Rourke. We have also refocused on a number of existing customers such as BAM, Morgan Sindall, Winvic and McLaren, who provide access to more regional opportunities and this has resulted in a number of high quality orders outside of London.
"Particularly pleasing are the inroads that we have made into the infrastructure market, with our enhanced bridge capability we have secured work with the infrastructure teams of Costain, Skanska, BAM and Hochtief, working on contracts for Network Rail and Highways England. These relationships will serve us well in the future as we expect to see growth in the infrastructure market over the coming years."
(LM/MH)
