Last checked at 16 Feb 2016 07:00
16 February 2016
Severfield plc
("the Company" or "the Group")
Trading Update
Severfield plc, the market leading structural steel group, announces an update on trading for the current financial year as at 15 February 2016.
Current tradingThe Group's trading performance and financial position for the year continue to be in line with management expectations.UKThe UK order book of £246m (1 November 2015: £185m) reflects some significant recent contract awards from our pipeline of opportunities. Operating margin improvement is also continuing in line with management expectations, primarily from the internal efficiency benefits arising from the Group's operational improvement programme.
The market continues to present a good level of opportunities although as indicated in November's interim results, slippage in potential timescales still remains a risk as clients scrutinise forecast overall project costs with caution.JSW Severfield Structures Ltd (India)The Indian market environment remains somewhat challenging but the business continues to perform satisfactorily in this climate. The order book of £39m (1 November 2015: £35m) is stable and while production volumes remain steady, the opportunity for margin improvement in the current climate is limited.OutlookThe UK business continues its good progress in a relatively stable environment and the current order book will enable continued growth in both revenue and margins. The Indian business remains steady despite a mixed economic backdrop. Overall, the group is on track to meet management expectations for the year.
For further information, please contact:
Severfield plc | Ian Lawson Chief Executive Officer
| 01845 577896 |
| Alan Dunsmore Finance Director
| 01845 577896 |
Jefferies International Limited | Simon Hardy | 020 7029 8000 |
| Harry Nicholas
| 020 7029 8000 |
Bell Pottinger | Nick Lambert | 020 3772 2558 |
| Dan de Belder | 020 3772 2561 |
| Zara de Belder | 020 3772 2512 |