LONDON: Severfield Plc, the UK’s leading structural steel group, posted a pretax loss of £17.5 million for the year ended 29 March 2025, reversing a profit of £23 million a year earlier, as subdued market conditions and bridge remediation costs weighed on performance.
Full-year revenue dipped 3% to £450.9 million, while underlying operating profit plunged 42% to £21.7 million. Operating margins contracted sharply to -3.0% from 5.7%. Severfield attributed the decline to weaker UK and European market demand and tighter project pricing.
Despite the downturn, the company retained a diversified UK and Europe order book worth £444 million as of 1 July, up from £410 million in November, and reiterated its unchanged outlook for FY26. New orders span industrial, data centre, energy, and infrastructure sectors.
In India, joint venture JSSL reported a record £240 million order book, supported by the upcoming launch of new facilities in Gujarat. The group also secured an extension of its £60 million revolving credit facility to 2027, strengthening its liquidity position.
Chairman Charlie Cornish acknowledged the year’s difficulties, citing the bridge remedial works and economic headwinds, but emphasized Severfield’s strategic resilience and strong positioning in sectors driving the green energy transition.
“We’ve built a robust pipeline into FY26 and FY27 and continue to see promising market activity. Our proven delivery, diversified portfolio, and sectoral positioning leave us well placed for recovery,” Cornish said.
Severfield ended the year with £43.1 million in net debt (pre-IFRS-16), up from £9.4 million, and a leverage ratio of 1.2x. The company’s ROCE halved to 9.3% from 17.5%.
The Board reaffirmed confidence in long-term growth underpinned by demand in infrastructure, energy, and commercial projects, alongside the UK government’s strategic investment commitments.