Severfield, the North Yorkshire-based structural steel group, saw its share price drop by 48% to 26.4p following a second profit warning in challenging market conditions.
The company now expects underlying pre-tax profit for the year ending 29 March 2025 to be between £18m and £20m. This follows a warning in November 2024, when Severfield highlighted a challenging trading environment in the UK and Europe.
Project delays continue impacting revenue, with a major contract initially scheduled to begin in January, which is now postponed to early FY26. The company’s UK and Europe order book stood at £403m as of 1 February 2025, down from £410m in November, with £281m scheduled for delivery within 12 months.
Severfield has implemented cost-cutting measures but has not secured enough short-term work to cover overheads in Q4. The company expects continued uncertainty, with delays in client decision-making and a lack of primary “anchor” projects affecting FY26 performance. As a result, it now anticipates profits for FY26 will fall below revised FY25 expectations.
Despite near-term challenges, Severfield has secured large projects for FY27 and sees future opportunities in data centres, industrial manufacturing, and commercial office developments, particularly in London. The company also aims to capitalise on long-term growth sectors, including green energy.
