Last checked at 25 Apr 2019 07:00
25 April 2019
Severfield plc
('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 2019.
Current trading
The Group's overall trading performance continues to be in line with management's expectations. The financial position of the Group remains good and year-end net funds were approximately £25m (31 March 2018: £33m).
UK and Europe
The order book of £274m as at 1 April 2019 (1 November 2018: £230m) continues to include a high proportion of smaller, lower risk projects which typically have shorter lead times. The order book also includes the first orders secured by our new European business venture, based in the Netherlands. The order book remains in line with our normal 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 pipeline performance are consistent with our continued progress towards our strategic targets.
Following extensive negotiations with all stakeholders, we have now agreed a final settlement for the remedial bolt replacement works at Leadenhall, resulting in no further costs for the Group.
India
The Indian joint venture ('JSSL') has continued to perform well in the second half of the year. The market for structural steel in India continues to improve as evidenced in an order book of £149m at 1 April 2019 (1 November 2018: £124m) which includes a large recent commercial order (Amaravati) in the state of Andhra Pradesh. The improving market position is also reflected in a growing pipeline which includes a number of potential commercial projects, together with various industrial opportunities, including those for our joint venture partner, JSW Steel ('JSW').
The expansion of the Bellary facility is now underway and is expected to be completed towards the end of the 2020 financial year.
Full year results
The Group will announce its financial results for the year ended 31 March 2019 on Wednesday 19 June 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
Monique Perks 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 developing Indian market through its joint venture partnership with JSW Steel (India's largest steel producer).