Severfield PLC Trading Update (6722A)

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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 GBP267m 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 GBP40m, 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                      020 7029 
  Limited                   Simon Hardy        8000 
                                              020 7029 
  Harry Nicholas                               8000 
                                              020 3772 
 Bell Pottinger             Nick Lambert       2558 
                                              020 3772 
  Dan de Belder                                2561 
                                              020 3772 
  Zara de Belder                               2512 
 

This information is provided by RNS

The company news service from the London Stock Exchange

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March 28, 2017 02:00 ET (06:00 GMT)