Last checked at 3 Sep 2019 07:00
3 September 2019
Severfield plc
('the Company' or 'the Group')
AGM trading update - outlook for FY20 unchanged
At the Company's Annual General Meeting, to be held today at 12.00 noon, Aldwark Manor Hotel, Aldwark, Alne, York YO61 1UF, the Chairman, John Dodds, will make the following statement.
Current trading and outlook
The Group's trading performance and financial position remains in line with management expectations and the outlook for the year ending 31 March 2020 remains unchanged. As anticipated, following two years of more equally weighted profits in H1 and H2, the results for the 2020 financial year are expected to be significantly more second half weighted, with a number of large ongoing contracts expected to deliver profits in the second half of the financial year.
UK and Europe
The order book of £301m as at 1 September (1 June: £295m), of which £281m is for delivery over the next 12 months, contains a healthy mix of projects within the UK, Republic of Ireland and continental Europe across a diverse range of market sectors.
In general, our pipeline of potential future orders has remained stable with a good balance of work across all key market sectors. Both the quality of the order book and the strength of the pipeline are consistent with our continued progress towards our strategic targets.
India
The Indian market for structural steel continues to expand, and we are seeing clear signs of the conversion of the market from concrete to steel which will drive the success and long term value of the business. This position is evident in JSSL's order book of £134m at 1 September (1 June: £134m) which contains a growing mix of higher margin commercial work. The expanding market position is also reflected in a pipeline which includes a growing number of potential commercial projects for key developers and clients with whom we are developing strong relationships. We also have visibility of an increased pipeline of industrial opportunities, including those for our joint venture partner, JSW Steel ('JSW').
The expansion of the Bellary facility is progressing well and is expected to be completed towards the end of the 2020 financial year.
Half year results
The Group will announce its financial results for the half year ending 30 September 2019 on Tuesday 26 November 2019.
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 4980
Tom Huddart 020 3757 4980
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 four sites, c.1,300 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 (India's largest steel producer).