11 April 2018
('the Company' or 'the Group')
Pre-close trading update
Severfield plc, the market leading structural steel group, today announces the following trading update for the financial year ended 31 March 2018.
The Group's overall trading performance continues to be in line with our upwardly revised expectations, which were established at the time of the half year results on 21 November 2017. The financial position of the Group remains strong and year-end net funds were approximately £33m (2017: £33m).
The UK order book of £242m as at 1 April (1 November: £245m) remains solid and continues to include work across a wide range of market sectors and project sizes. The order book remains in line with our normal order book levels, which typically equate to eight to ten months of annualised revenue. Our pipeline of potential future orders has remained stable with a good balance of work across all key market sectors.
Both order book and UK pipeline performance are consistent with our continued progress towards our strategic targets, including the 2020 strategic profit target of £26m.
The Indian business has continued to perform well in the second half of the year. This reflects good operational performance coupled with lower financing costs following the repayment of the joint venture's term debt in June 2017. The Indian order book of £65m at 1 April (1 November: £79m) remains strong and contains an appropriate mix of commercial work and lower margin industrial work. We remain confident in the long term development of the business and believe it continues to have a solid foundation from which to deliver future profitable growth.
Full year results
The Group will announce its financial results for the year ended 31 March 2018 on Wednesday 20 June 2018.
For further information, please contact:
Severfield Alan Dunsmore 01845 577 896
Chief Executive Officer
Adam Semple 01845 577 896
Group Finance Director
Jefferies International Simon Hardy 020 7029 8000
Will Soutar 020 7029 8000
Camarco Ginny Pulbrook 020 3757 4992
Tom Huddart 020 3757 4991
Legal Entity Identifier of the Company: 21380025AWPR781CY104
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, which represents c.17 per cent of UK structural steel production.
The Group has four sites, c.1,400 employees and expertise in large, complex projects across a broad range of sectors. The Group also has an established foothold in the developing Indian market through its joint venture partnership with JSW Steel (India's largest steel producer).
In 2016, the Severfield management team set out their key strategic target, to double underlying profit before tax to £26m by 2020.
This information is provided by RNS