Severfield (SFR) Trading Update summary

FY25 trading performance

• Market conditions in the UK and Europe remain challenging, with continued project cancellations and delays, including a major project postponed to early FY26.

• Order book at 1 February 2025 stood at £403m, with £281m for delivery in the next 12 months, slightly down from November 2024.

• Underlying profit before tax for FY25 is now expected to be £18m–£20m, reflecting lower project volumes and revised contract judgments.

• Net debt at 31 January was £55m, expected to reduce to £45m–£50m by year-end, maintaining cash headroom of £25m–£30m.

• Cost reduction actions and cancellation of the share buyback programme have been implemented to mitigate market pressures.

Operational updates and remedial works

• Bridge remedial works are progressing as planned, with cost and insurance recovery estimates unchanged.

• Further clarity on remedial costs and insurance recoveries is anticipated as discussions with stakeholders continue.

Outlook and future opportunities

• Project pipeline remains healthy, but client decision-making is deferred and large anchor projects are absent, impacting FY26 expectations.

• Underlying profit before tax for FY26 is now expected to be below revised FY25 levels.

• Attractive large projects have been secured for FY27, with future opportunities in data centres, manufacturing, and commercial offices.

• The group is well positioned for growth in sectors supporting the green energy transition, maintaining medium-term growth targets.