Full Year Trading Update
Summary by AI BETAClose X
31 March 2026
Severfield plc
('Severfield', 'the Company' or 'the Group')
Full Year Trading Update
Severfield plc, the market-leading structural steel group, provides a trading update ahead of its full year results for the year ended 28 March 2026 ("FY26").
Highlights
• FY26 underlying profit before tax expected to be in line with current market expectations of £10.2m
• Disciplined cash management during the period providing good liquidity headroom with net debt expected to be ~£28m, lower than current market expectations (Company compiled market consensus: £48.5m), providing year end facility headroom of c.£39m
• UK and Europe order book of £438m provides good visibility, comprising a mix of near-term projects and larger anchor projects, although current subdued market conditions have seen delays in some start dates to late FY27
• Record Indian order book of £331m demonstrates continued strong momentum, with record output in FY26 and expansion at the new Gujarat facility progressing to plan
• The Board's expectations for FY27 are for underlying profit before tax to be in the range of £12m-£15m, reflecting a cautious view of the year ahead based on later project start dates, the current tight pricing environment, macroeconomic conditions, and current geopolitical uncertainty
• New management's review of the business has continued to progress well, with the implementation of early changes, such as the previously announced discontinuation of the non-core Modular Solutions business. The review will be concluded ahead of the year end results announcement in June 2026, when management expects to provide an update.
Secured workload
The UK and Europe order book stands at £438m at 1 March (1 January 2026: £479m), of which £338m (1 January 2026: £358m) is for delivery over the next 12 months.
The order book remains well diversified, with a good mix of projects across the Group's key market sectors, with 34% relating to projects in continental Europe and Ireland (1 January 2026: 33%).
The Indian order book stands at £331m at 1 March (1 November 2025: £286m), 72% of which represents higher-margin commercial work (1 November 2025: 80%).
Momentum in India continues to strengthen, with JSSL delivering a record output of approximately 125k tonnes during the year.
Expansion at the new Gujarat facility remains on track with first output achieved during FY26 and subsequent phases on track for FY27. The business remains well positioned to capitalise on structural growth opportunities in the Indian construction market, with new sectors and geographies being targeted and the outlook for structural steel demand remaining positive.
Bridge remedial works programme
The bridge remedial works programme continues to progress well, with several programmes now complete. Since the half year, the Group has received a further insurance payment of £7.5m, bringing the total amount received to £27.5m. The Group continues to pursue further insurance recoveries and contributions to our costs by third parties. Net costs incurred are expected to be broadly similar to that previously reported.
Outlook
Although the Group continues to see a good pipeline of opportunities, market conditions in the UK and Europe have remained subdued, reflecting macroeconomic uncertainty, elevated interest rates, and geopolitical instability, weighing on business confidence and the timing of project awards. The Industrial, Stadia and Commercial sectors have been particularly impacted; the Group has secured replacement work, principally across continental Europe, to maintain factory utilisation.
Start dates for several large, secured projects that were previously expected to commence in early FY27 have been delayed, with a number now anticipated to enter production in the second half of FY27. As a result, whilst the order book continues to provide good visibility of future activity, it reflects a mix of near-term work secured at tighter margins and larger projects scheduled to commence later in FY27.
We also remain mindful of the ongoing conflict in the Middle East, which continues to disrupt global trade routes and supply chains, and drive energy price volatility. The current direct cost exposure of the Group is limited, reflecting our well-established policies of securing steel prices at contract stage and hedging key commodity costs. However, whilst these measures provide a degree of short-term protection, the situation remains uncertain and largely outside the Group's control. Prolonged disruption or further escalation could give rise to broader impacts on project timelines, supply chain reliability and overall market conditions. We will continue to monitor developments closely and take further mitigating actions as appropriate.
Accordingly, the Board is adopting a cautious view of the year ahead and now expects FY27 underlying profit before tax to be in the range of £12m-£15m, reflecting increased geopolitical uncertainty, together with broader macroeconomic conditions, the impact of later project start dates, and a continued tight pricing environment.
Following the appointment of new leadership, the Group has continued to progress its previously announced review of the business, aimed at ensuring it is well positioned to deliver sustainable long-term growth and improved profitability. As part of this process, the Group has begun implementing a number of changes, including the previously announced decision to discontinue its sub-scale Modular Solutions business. The review will conclude before the presentation of the year end results in June, when management will update the market.
The Group expects to announce its full year results for the year ended 28 March 2026 on 23 June 2026.
ENDS
For further information, please contact:
|
Severfield |
Paul McNerney Chief Executive Officer |
01845 577 896 |
|
|
Andrew Page Chief Financial Officer |
01845 577 896 |
|
Camarco |
severfield@camarco.co.uk |
|
|
|
Ginny Pulbrook |
07961 315 138 |
|
|
Tom Huddart |
07967 521 573 |
|
Jefferies International |
Sam Barnett |
020 7029 8000 |
|
Panmure Liberum |
Nick How |
020 3100 2000 |
Notes:
Except as otherwise stated '2026 and FY26' and '2027 and FY27' refer to the 52-week periods ending 28 March 2026 and 27 March 2027. The Group's accounts are made up to an appropriate weekend date around 31 March each year.
Notes to editors:
Severfield is the UK's market leader in the design, fabrication and construction of structural steel, with a total capacity of c.150,000 tonnes of steel per annum. The Group has six sites, c.1,800 employees and expertise in large, complex projects across a broad range of sectors. The Group also has an established presence in the expanding Indian market through its joint venture partnership with JSW Steel (India's largest steel producer).
The Group delivers steel superstructures through its Core Construction Operations, separated operationally into a Commercial and Industrial division (bringing together the Group's strong capabilities in the industrial and distribution, commercial offices, stadia and leisure, data centres, retail, and health and education market sectors), which includes the Group's European operations, and a Nuclear and Infrastructure division (encompassing the Group's market-leading positions in the nuclear, power and energy, transport (road and rail) and process industries sectors).
Inside information
This announcement contains inside information as defined under the Market Abuse Regulation (EU) No. 596/2014 as it forms part of UK domestic law by virtue of the European Union (Withdrawal) Act 2018 ("UK MAR"). Upon the publication of this announcement via a Regulatory Information Service, this inside information is now considered to be in the public domain.
The person responsible for arranging the release of this announcement on behalf of Severfield is Andrew Page, Chief Financial Officer.
Cautionary statement
This announcement includes forward-looking information relating to the Group's outlook and expected future performance. Such information is based on current expectations and is subject to risks and uncertainties that could cause actual results to differ materially. These include, among other factors, changes in economic, financial, business or market conditions. Accordingly, undue reliance should not be placed on this information. The Group undertakes no obligation to update such information.
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