Severfield PLC Navigates Steady Waters Amidst Market Expectations

Severfield PLC (LON:SFM), a structural steel group, provided a trading update on Tuesday ahead of its Annual General Meeting, signaling a continuation of previously communicated expectations.

Despite a challenging market backdrop, the company said trading has remained in line with forecasts since the start of FY26.

The group anticipates that its full-year results for FY26 will be significantly more weighted towards the second half of the year, a projection consistent with the outlook provided during the FY25 results announcement on July 24.

Severfield stated that its financial position remains robust, supported by the recent amendment and extension of its £60 million Revolving Credit Facility (RCF) until December 2027.

An ongoing emphasis on cash generation and working capital control further bolsters the company's financial stability.

The UK and Europe order book stood at £420 million as of September 1, compared to £444 million on July 1. £330 million of this is slated for delivery within the next 12 months. The order book's diversification across key market sectors, including continental Europe and Ireland (19 per cent), demonstrates a well-balanced portfolio.

In India, Severfield's joint venture, JSSL, boasts a record order book of £252 million as of September 1, up from £240 million on July 1. The order book contains a significant proportion of higher-margin commercial work, accounting for 85 per cent of the total.

The bridge remedial works program is progressing as expected, with no material changes to the estimated costs recorded in the FY25 results. The group has also fully received the previously announced £20 million insurance recovery from its professional indemnity insurers.

Severfield will announce its financial results for the six months ending September 27, 2025, on Tuesday, November 25, 2025.

The company's share price has risen by around 0.9% so far on Tuesday. However, the YTD performance shows a decrease of -38.7%.