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Investing.com -- Structural steel company Severfield on Thursday maintained its guidance for fiscal year 2026 despite reporting no final dividend and a challenging market environment in its preliminary results for fiscal year 2025.
The company reported sales of £451 million, down 3% year-over-year, while earnings before interest, tax and amortization (EBITA) came in at £21.7 million with a margin of 4.8%, significantly lower than the 8.6% margin achieved in fiscal year 2024.
Profit before tax reached £18.1 million with earnings per share of 4.3p. The company did not declare a final dividend, resulting in a total dividend of 1.4p for the year. Pre-IFRS net debt stood at £43.1 million.
Severfield’s UK and European order book totaled £444 million, which represents a 7% decrease year-over-year but a 1% increase since April 2025. The company noted that £324 million of this order book is scheduled for delivery over the next 12 months.
Commercial and industrial sales declined 3% to £350 million due to lower industry demand and project delays. The nuclear and infrastructure segment saw sales drop 2% to £86 million, while modular solutions sales increased 13% to £24 million.
The company’s Indian joint venture experienced a 21% sales decline to £103 million, with EBITA falling 57% to £4.5 million. However, the Indian order book reached a record £240 million, up 33% year-over-year and 14% since April.
Management described the UK and European market as "subdued" with pricing "tighter than expected," though tendering activity has recently improved. The company continues to control costs and cash, with its new Gujarat facility expected to be operational in fiscal year 2026.
Severfield also updated on its bridge repair charges, which are expected to total £43 million gross or £23 million net.
The company has financing in place for approximately 2.5 years with sufficient headroom on its leverage position according to management guidance.
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