Trading Update

RNS Number : 6722A

Severfield PLC

28 March 2017

 

28 March 2017

Severfield plc

("the Company" or "the Group")

Trading Update

Severfield plc, the market leading structural steel group, today announces an update on trading for the financial year ending 31 March 2017.

Current Trading

Trading during the second half of the financial year has been strong, with the Group's performance for the year ending 31 March 2017 now expected to be ahead of expectations. Cashflow performance in the second half has been similarly strong with net funds at the year end also expected to be ahead of expectations.

UK

Performance on our UK contracts continues to reflect our ongoing operational improvement programme which is delivering benefit to our clients and to our own financial performance. The UK order book remains solid at £267m and the pipeline of potential projects remains steady although, as previously highlighted, we expect the mix of commercial projects to be at more normal levels over the coming months. Both order book and pipeline performance remain consistent with our objective of doubling profits by 2020.

JSW Severfield Structures Ltd (India)

Operational performance remains solid and the long term debt repayment programme continues on track. The order book is stable at £40m, despite excluding a commercial project in Kerala, originally awarded in December 2016, which was recently cancelled following a change in prime contractor.

Outlook

With a good order book, continued strong operational performance and our ability to work across a wide range of sectors, including infrastructure, the UK business is well-placed to deliver further growth towards our objective of doubling profits by 2020. The Indian business continues to perform in a stable manner with the economic backdrop continuing to show signs of improvement following the government's demonetisation programme.

Full Year Results

Severfield will announce its financial results for the year ending 31 March 2017 on 14 June 2017.

For further information, please contact:

Severfield plc	John Dodds	01845 577896
	Alan Dunsmore	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

 

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