REG - Severfield PLC - Interim Results
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RNS Number : 7803J Severfield PLC 02 December 2025
2 December 2025
Interim results for the period ended 27 September 2025
Diversified order books support unchanged expectations for FY26, improved net
debt position, well-positioned in markets with positive long-term growth
trends
Severfield plc, the market-leading structural steel group, announces its
results for the six-month period ended 27 September 2025.
£m H1 2026 H1 2025 Change
(unaudited) (unaudited)
Revenue 206.0 252.3 -18%
Underlying(1) operating profit (before JVs and associates) 2.3 17.2 -87%
Operating loss (before JVs and associates) (5.9) (4.6) (1.3)
Underlying(1) profit before tax 0.6 16.1 -96%
Loss before tax (7.6) (5.8) (1.8)
Underlying(1) basic earnings per share 0.2p 4.0p (3.8p)
Basic loss per share (1.9p) (1.4p) (0.5p)
Interim dividend per share - 1.4p (1.4p)
Headlines
§ Diversified UK and Europe order book of £429m at 1 November (1 July:
£444m), of which £324m is for delivery over the next 12 months
§ Underlying(1) profit before tax of £0.6m (H1 2025: £16.1m) reflects
lower volumes and challenging market conditions
§ Reduction in period-end net debt (on a pre-IFRS 16 basis(2)) to £21.7m
(29 March 2025: £43.1m), includes amortising term loans of £13.8m
§ Bridge remedial works programme progressing in line with expectations;
receipt of £20.0m insurance proceeds
§ Improved H1 results and continued strategic progress in India - record
JSSL order book of £286m at 1 November (1 July: £240m), new production
facilities in Gujarat expected to be operational in FY26
§ Revolving credit facility extended to December 2027, alongside share
purchase option agreement with JSW Steel, provides enhanced liquidity and
financial flexibility
§ New executive management team to drive future growth
Outlook
§ UK and Europe:
- Market for structural steelwork remains subdued and competitive
bidding environment continues to drive tighter prices
- Tendering activity is improving, principally in the distribution and
data centre sectors
- We continue to see some attractive large-scale projects coming to
market, particularly for FY27 and beyond
§ India: we are well-positioned to take advantage of significant growth
opportunities, with new markets being targeted, and a very encouraging outlook
for structural steel
§ New Strategy and Transformation Director appointed to support future
growth
§ We remain well-positioned to win work in markets and sectors with
excellent longer-term growth opportunities, including within Energy and
Infrastructure
§ The Group has good visibility over H2 revenues through orders already
secured in the £429m order book
§ Management expectations for FY26 are unchanged
Paul McNerney, Chief Executive Officer commented:
"I am delighted to have joined Severfield at a pivotal time in its journey.
The Group has a proud heritage, strong values and deep technical capability,
underpinned by resilient core operations across a diversified range of market
sectors. I have worked with Severfield closely throughout my career, including
most recently at the Bramley-Moore Dock Stadium in Liverpool, and I know
first-hand that our teams can deliver a world class service for our
customers."
"Since joining, I have initiated a strategic review of our markets, operations
and organisational structure and I look forward to presenting the findings of
this review in 2026. I have also engaged with a wide range of current and
former customers, and it has been encouraging to hear such strong support for
Severfield and the confidence they have in our expertise and delivery."
"I am focused on redefining our strategy, strengthening our manufacturing and
delivery capabilities, driving greater efficiency, and on bringing an absolute
focus on engineering excellence for our customers - ensuring we are well
positioned for future growth. I look forward to working with the Board and the
wider team to grow the business and deliver sustainable value for all
stakeholders."
For further information, please contact:
Severfield Paul McNerney 01845 577 896
Chief Executive Officer
Jan Bramall 01845 577 896
Interim Chief Financial Officer
Camarco severfield@camarco.co.uk
Ginny Pulbrook 07961 315 138
Tom Huddart 07967 521 573
Jefferies International Sam Barnett 020 7029 8000
Panmure Liberum Nick How 020 3100 2000
Notes to financials:
(1) Stated before non-underlying items of £8.2m (H1 2025: £21.9m) including
bridge testing and remedial costs of £nil (H1 2025: £20.4m), other bridge
related costs of £3.3m (H1 2025: £nil), refinancing-related costs of £1.4m
(H1 2025: £nil), the amortisation of acquired intangible assets of £1.3m (H1
2025: £1.3m) and other non-underlying costs of £2.2m (H1 2025: £0.2m).
Non-underlying items have been separately identified by virtue of their
magnitude or nature to enable a full understanding of the Group's financial
performance and to make year-on-year comparisons. They are excluded by
management for planning, budgeting and reporting purposes and for the internal
assessment of operating performance across the Group and are normally excluded
by investors, analysts and brokers when making investment and other decisions
(see note 7).
(2) The Group excludes IFRS 16 lease liabilities from its measure of net
funds/debt as they are excluded from the definition of net funds/debt as set
out in the Group's borrowing facilities.
(3) Except as otherwise stated '2025 and FY25' refer to the 52-week period
ended 29 March 2025. '2026 and FY26' and '2027 and FY27' refer to the 52-week
periods ending 28 March 2026 and 27 March 2027. The Group's accounts are made
up to an appropriate weekend date around 31 March each year.
A reconciliation of the Group's underlying results to its statutory results is
provided in the Alternative Performance Measures ('APMs') section (see note
17).
Notes to editors:
Severfield is the UK's market leader in the design, fabrication and
construction of structural steel, with a total capacity of c.150,000 tonnes of
steel per annum. The Group has seven sites, c.1,800 employees and expertise in
large, complex projects across a broad range of sectors. The Group also has an
established presence in the expanding Indian market through its joint venture
partnership with JSW Steel (India's largest steel producer).
The Group delivers steel superstructures through its Core Construction
Operations, separated operationally into a Commercial and Industrial division
(bringing together the Group's strong capabilities in the industrial and
distribution, commercial offices, stadia and leisure, data centres, retail,
and health and education market sectors), which includes our European
operations, and a Nuclear and Infrastructure division (encompassing the
Group's market-leading positions in the nuclear, power and energy, transport
(road and rail) and process industries sectors). The Group's Modular Solutions
division consists of the growing product ranges of Severfield Modular
Solutions ('SMS') and of Construction Metal Forming ('CMF'), our specialist
cold rolled steel joint venture business.
INTERIM STATEMENT
INTRODUCTION
The results for the first half of FY26, which are in line with expectations,
reflect a continued challenging market backdrop across the UK and Europe.
Financial performance in H1 was impacted by lower levels of activity across
the Group, driven by subdued demand, some contract delays, and a sustained
period of tighter pricing, particularly for near-term work. Despite these
headwinds, we have recently secured a number of significant new projects, now
reflected in our diversified order books, which underpins our confidence in a
stronger performance in the second half. In addition, during the period we
have continued to progress work on several major projects, including the
Agratas battery gigafactory in Somerset, set to supply batteries for Jaguar
Land Rover and Tata Motors, an Energy from Waste facility in London, and
'Project ONE', a new large-scale plant for INEOS in the Port of Antwerp,
Belgium.
Looking ahead, our businesses remain well positioned to secure work in markets
with strong long-term growth dynamics, particularly in heavily invested
infrastructure and energy sectors, including Nuclear and those supporting the
green energy transition. This provides a strong platform from which to deliver
our growth ambitions.
In response to the current trading pressures, we continue to implement
appropriate cost reduction and cash conservation measures to support a strong
balance sheet and drive improvements in ROCE. Net debt (pre-IFRS 16) at the
period end was £21.7m, an improvement of c.£21m since year-end. This
comprised amortising term loans of £13.8m and RCF drawings of £8.0m,
providing facility headroom of over £50m as at 27 September 2025. In H2, the
Group expects cash payments to include around £10m of bridge remedial costs,
provided for in FY25, approximately £6m of term loan repayments, and the
partial unwind of the temporarily low working capital position at the end of
September 2025. Notwithstanding the focus on strong operational cash
generation, the Board is prioritising the preservation of financial
flexibility until market conditions improve and, as a result, is not declaring
an interim dividend. The Board recognises the importance of the dividend to
many shareholders and remains committed to resuming payments as soon as it is
appropriate to do so.
In India, the construction sector, and the use of steel within construction,
continues to grow strongly. This position is evident in JSSL's improved H1
results and the company's record order book at 1 November of £286m (1 July:
£240m).
The bridge remedial works programme continues to progress in line with
expectations. The previously announced insurance recovery of £20m, agreed
with the Group's professional indemnity insurers, has now been fully received.
The Group has recognised provisions for other bridge-related costs of £3.3m
comprising third-party consequential costs and claims received since the FY25
results announcement in July.
OUTLOOK
The Group is on track to achieve its full year earnings expectations and has
good visibility over H2 revenues through orders already secured in the order
book
The market backdrop remains uncertain, reflecting subdued business confidence
in the UK economy. This is leading to some projects, including key 'anchor'
projects, either not being awarded or progressing more slowly than expected
and, in the near term, reduced industry demand is contributing to significant
pricing pressure. The Group's strong competitive position continues to support
an improvement in tendering activity and a healthy pipeline of project
opportunities, particularly for FY27 and beyond, with several already secured.
The Group is also actively mitigating the impact of these market conditions
through ongoing cost reduction and cash conservation measures, in support of a
strong balance sheet. Working alongside the new Executive management team, the
appointment of a Strategy and Transformation Director is intended to bring
greater focus to and drive improvements in Severfield's operational efficiency
and future growth.
Looking further ahead, we are seeing significant opportunities across sectors
such as industrial manufacturing, commercial offices, including increased
activity in London, and data centres, where demand is being accelerated by the
growth of Artificial Intelligence ('AI') applications and the resulting
reliance on data infrastructure. Many of our target markets continue to
exhibit favourable long-term fundamentals. We hold a prominent position in
sectors with strong growth potential and are well placed to secure projects
that support the low-carbon transition and enhance energy security, aided by
growing clarity around the UK's infrastructure agenda. In the Autumn budget,
the UK Government has reaffirmed its commitment to infrastructure and its
£725 billion 10-year infrastructure strategy and National Infrastructure
Pipeline, which provides greater certainty for the industry, enabling the UK
construction supply chain to plan more effectively and invest in capability.
These prospects underpin the Board's confidence in the Group's ability to
deliver attractive shareholder returns over the long term.
FINANCIAL REVIEW
H1 2026 (£m) Revenue UOP* UPBT*
Core Construction Operations 199.2 3.4 3.4
Modular Solutions 9.6 (1.1) (1.4)
India - - 1.0
Central items / eliminations (2.8) - (2.4)
Group 206.0 2.3 0.6
H1 2025 (£m) Revenue UOP* UPBT*
Core Construction Operations 247.2 17.1 17.1
Modular Solutions 9.8 0.1 0.4
India - - 0.1
Central items / eliminations (4.7) - (1.5)
Group 252.3 17.2 16.1
*The references to underlying operating profit (before JVs and associates) and
underlying profit before tax are defined in the 'notes to financials' and
reconciled to the statutory measures in note 17.
Revenue of £206.0m (H1 2025: £252.3m) represents a decrease of £46.3m (18
per cent) compared to the prior period. This reflects a decrease in revenue
from our Core Construction Operations, mainly representing lower production
activity in the period. The underlying operating profit (before JVs and
associates) of £2.3m (H1 2025: profit of £17.2m) represents a reduction in
profit of £14.9m over the prior period. This reflects the reduction in
revenue (and activity levels) which has resulted in the under recovery of
fixed factory overheads, together with the impact of ongoing pricing pressure.
The statutory operating loss (before JVs and associates), which includes
non-underlying items, was £5.9m (H1 2025: £4.6m), a reduction in earnings of
£1.3m over the prior period.
The share of profit from the Indian joint venture in the period was £1.0m (H1
2025: £0.1m). The significant improvement in H1 profit reflects increased
revenue and a strong operating performance against a prior period comparative
which was impacted by project delays around the Indian elections in June 2024.
The Group's underlying profit before tax was £0.6m (H1 2025: profit of
£16.1m), a reduction in profit of £15.5m compared to the previous period.
The statutory loss before tax was £7.6m (H1 2025: £5.8m), a reduction in
profit of £1.8m over the prior period.
An underlying tax charge of £0.0m is reported for the period (H1 2025: charge
of £3.9m). This tax credit is recognised based on the best estimate of the
Group's average effective tax rate for the full financial year, which is
consistent with the statutory rate in the UK and the Netherlands of c.25% (H1
2025: c.25%). The total tax credit of £2.0m (H1 2025: £1.5m) includes a
non-underlying tax credit of £2.0m (H1 2025: £5.4m).
Underlying basic earnings per share is 0.2p (H1 2025: 4.0p). This calculation
is based on the underlying profit after tax of £0.6m (H1 2025: £12.2m) and
295,586,440 shares (H1 2025: 307,188,953 shares) being the weighted average
number of shares in issue during the period. Basic loss per share, which is
based on the statutory loss after tax, is 1.9p (H1 2025: 1.4p).
Non-underlying items
Non-underlying items for the period of £8.2m (H1 2025: £21.9m) consisted of
the following:
£m H1 2026 H1 2025
Bridge testing and remedial costs - 20.4
Other bridge-related costs 3.3 -
Refinancing-related costs 1.4 -
Amortisation of acquired intangible assets 1.3 1.3
Other non-underlying costs 2.2 0.2
Non-underlying items 8.2 21.9
The bridge remedial works programme continues to progress in line with
expectations. Since the year-end announcement, we have made good progress,
with several programmes now complete and the remaining works progressing in
line with expectations. The estimated cost of the testing and remedial
programmes remain materially unchanged from those reported in the FY25
full-year results.
The Group is working closely with customers to deliver remedial programmes and
has recognised a further £3.3m of provisions for certain third-party
consequential costs. Whilst the Group continues to challenge certain elements
of these claims, a conservative provision has been recognised. All third-party
items, including those recorded in FY25, remain subject to continued detailed
review, ongoing dialogue and legal process, as well as the application of
contractual liability caps. In addition to the PI insurance recoveries already
agreed, the Group continues to actively pursue all other potential avenues of
recovery, including further insurance recoveries and contributions to our
costs by third parties. However, no amounts have been recognised in respect of
these further potential recoveries at this stage as these are not yet certain.
Refinancing-related costs of £1.4m were incurred in connection with the
amendment and extension of the Group's core debt facilities in July 2025.
These costs primarily consist of arrangement fees, legal fees, and advisory
expenses, and reflect the extension of the facility's maturity to December
2027. The amortisation of acquired intangible assets of £1.3m represents the
non-cash amortisation of customer relationships and order books which are
being amortised over a period of 12 months to five years. Other non-underlying
costs of £2.2m include certain one-off business transformation, legal and
consultancy costs.
Cash flow and financing
Net debt (pre-IFRS-16 basis) at the period-end was £21.7m, which represented
amortising term loans of £13.8m and RCF drawings of £8.0m, providing
facility headroom of over £50m. In light of the current trading pressures,
there is an enhanced focus on cash generation and conservation including
careful working capital management, a reduction in planned capital
expenditure, the disposal of certain non-core assets, and other ongoing cost
reduction actions in support of a stronger balance sheet and our objective of
improving ROCE.
Operating cash flow before working capital movements and bridge-remedial
related costs was an inflow of £1.3m (H1 2025: £0.4m). Net working capital
reduced by £13.4m, largely due to the unwind of contract investment on key
projects. Working capital has been adjusted to exclude the impact of insurance
proceeds and net movement in the provision for bridge testing and remedial
cost in the period. Net capital proceeds of £1.6m (H1 2025: £3.1m
expenditure), including £1.4m of capital expenditure and £3.0m of proceeds
from the disposal of the mothballed ex-Harry Peers factory in Bolton, reflect
a reduced capital investment programme consistent with the Group's focus on
cash conservation. This compares to annual depreciation of £5.5m (H1 2025:
£4.8m), of which £1.9m (H1 2025: £1.3m) relates to right-of-use assets
under IFRS 16.
In July 2025, the Group successfully negotiated an amendment and extension to
its existing £60m Revolving Credit Facility ('RCF') with its lenders, HSBC
Bank and Virgin Money. The facility's maturity has been extended to December
2027, providing the Group with enhanced liquidity and financial flexibility.
The Group remains committed to maintaining a strong financial position and,
following this extension, confirms it has sufficient liquidity to meet its
current and anticipated funding requirements. At the same time, the Group also
entered into a share purchase option agreement with JSW Steel, its partner in
the Indian joint venture, JSSL, granting it the right, but not the obligation,
to dispose of an interest of up to 24.9 per cent in JSSL for up to £20m,
exercisable, at its sole discretion, at any time on or before 31 March 2026.
The option reflects the Board's prudent approach to strategic planning and
provides the Group with additional financial flexibility if required. The
Board confirms there is no current intention to exercise the option as JSSL
remains a strategically important venture for the Group.
Pensions
The Group's net defined benefit pension liability at 27 September 2025 was
£5.0m (scheme liabilities of £28.9m offset by scheme assets of £23.9m), a
decrease of £1.9m from the year-end position of £6.9m. The deficit has
reduced as a result of a higher discount rate, reflecting an increase in bond
yields, lower inflation assumptions and employer deficit contributions over
the period.
OPERATIONAL REVIEW
UK AND EUROPE
Maintaining a disciplined approach to contract selection and bidding remains
central to the Group's strategy, ensuring a balanced risk profile across our
order book. The vast majority of our projects continue to be secured through
negotiated, framework, or two-stage procurement routes, consistent with our
established principles of commercial discipline and robust risk management. As
at 1 November, the UK and Europe order book stood at £429m (1 July: £444m),
with £324m scheduled for delivery over the next 12 months. The order book
remains well-diversified across our core market sectors, including continental
Europe and Ireland, which represent 22 per cent of the total (1 July: 22 per
cent), reflecting our strong market position and access to growth
opportunities in these regions. During the first half of the year, we secured
approximately £190m of new work across the UK and Europe, albeit some of
these projects were secured at lower margins than historically achieved,
reflecting ongoing pricing pressure and subdued demand for structural
steelwork.
Many of our target markets continue to exhibit favourable long-term
fundamentals. The Group holds a prominent position in sectors with strong
growth potential and is well placed to secure projects that support the
transition to a low-carbon economy and enhance energy security, aided by
increasing clarity around the UK's infrastructure agenda. The UK Government
has begun to make tangible progress toward its objective of stimulating
economic growth through infrastructure investment, including support for
private financing of public assets, planning reform, and initiatives in clean
energy, transport, and critical national infrastructure, all of which are
expected to benefit the Group. The Group is seeing increased activity in the
London commercial sector and in data centres, where demand is being
accelerated by the growth of AI applications and the resulting reliance on
data infrastructure.
Looking ahead, future opportunities across our Commercial and Industrial and
Nuclear and Infrastructure segments include battery manufacturing plants,
energy-efficient buildings, renewable energy facilities, and offshore wind
projects, alongside work in transport, nuclear, and the broader power and
energy sectors. These opportunities align closely with the Group's core
capabilities and have the potential to strengthen the quality and resilience
of the future order book.
Core Construction Operations
£m H1 2026 H1 2025 Change
Revenue 199.3 247.2 -19%
Underlying operating profit (before JVs and associates) 3.4 17.1 -80%
Underlying profit before tax 3.4 17.1 -80%
Revenue:
Commercial and Industrial 143.5 205.0 -30%
Nuclear and Infrastructure 55.8 42.2 +32%
Revenue of £199.3m (H1 2025: £247.2m) represents a decrease of £47.9m (19
per cent) compared to the prior period, reflecting lower activity levels in
the current period. Underlying operating profit of £3.4m was down 80 per cent
on the prior period (H1 2025: £17.1m), reflecting the impact of the current
challenging market conditions, including lower revenue (and activity levels)
which has resulted in the under recovery of fixed factory overheads, and
tighter pricing in certain market sectors.
Commercial and Industrial
Revenue has decreased by 30 per cent to £143.5m (H1 2025: £205.0m),
reflecting the impact of the lower levels of industry demand. Notwithstanding
this, work progressed during the period on the battery gigafactory for Agratas
in Somerset, which will initially supply batteries for Jaguar Land Rover and
Tata Motors, together with ongoing works on the Energy from Waste facility in
London, and the 'Project ONE' contract for INEOS in Antwerp. This represents
the construction of a new ethane cracker (a steam cracker that converts ethane
into ethylene for use in the chemicals industry) and is the largest investment
in European chemicals industry in the past 25 years. We have also worked on a
number of data centre projects including two for Google in Finland and a
package of data centres in Sweden, together with various mid-sized office
developments, mainly in London (including Salisbury Square, 105 Victoria,
South Molton Triangle and the EDGE building, which is designed to be the most
sustainable office tower in London).
The Commercial and Industrial order book at 1 November was £202m (1 July:
£214m). This includes projects secured in the period such as new industrial
facilities, commercial offices, data centres, and several distribution
centres. Encouragingly, the short-cycle distribution sector is showing early
signs of recovery, and recent wins in this area reflect renewed momentum in
what has historically been an important market for the Group. We have already
secured a number of attractive large-scale projects for FY27 and continue to
see strong opportunity in sectors driving the green energy transition
including energy-efficient buildings, renewable energy manufacturing
facilities, offshore wind developments, and new battery gigafactories across
the UK and Europe. The Group's engineering excellence, manufacturing scale,
speed of construction, and proven on-time delivery leave us well positioned to
win work on these projects, the majority of which are expected to be
steel-intensive in design. Demand for data centres in the UK and Europe
remains strong, and we are also seeing the emergence of a pipeline of large
commercial office opportunities in London. We are currently tendering for
several of these projects, with delivery expected to commence in FY27.
Nuclear and Infrastructure (N&I)
Revenue has increased by 32 per cent to £55.8m (H1 2025: £42.2m), reflecting
increased activity levels driven by the large N&I order book coming into
the financial year. During the period, the Group progressed several
significant projects, including a process industries scheme in Hull and a
major offshore wind contract with Ørsted for the Hornsea 3 development,
marking a key step forward in our expansion into the renewables market. We
also continued work on multiple road and rail bridge schemes for a range of
clients, including the Black Cat bridge in Cambridgeshire, the Baker Viaduct
on the Transpennine Route Upgrade, and the York Central bridges. In the
nuclear sector, the Group continues to deliver work at Hinkley Point,
including secondary steelwork and supply-only packages, alongside several
large-scale projects at Sellafield.
The N&I order book at 1 November was £220m (1 July: £224m) of which 46
per cent (1 July: 48 per cent) represents transport infrastructure, 43 per
cent (1 July: 42 per cent) represents power and energy (including nuclear) and
11 per cent (1 July: 10 per cent) represents process industries projects.
The outlook for the Group's core markets remains positive through the medium
term. The UK Government has begun to make tangible progress with its objective
to stimulate economic growth through infrastructure investment, including in
Severfield's key growth areas of energy and transport infrastructure, both of
which are central to the green energy transition. These ambitions were
reaffirmed in June with the publication of the £725 billion 10-year
infrastructure strategy and National Infrastructure Pipeline, which provide
greater clarity and certainty for the construction industry as a whole.
In the UK energy sector, the long-term upgrade of the national energy
infrastructure is well underway, supporting improvements in energy security
and accelerating the green transition. This includes significant and timely
investment in both generation and network capacity. We are seeing a growing
pipeline of opportunities across new nuclear (including Sizewell C, small
modular reactors, and fusion energy) as well as in onshore and offshore wind,
solar, carbon capture, and hydrogen production. In the defence sector,
government plans to enhance national security and modernise defence
infrastructure are generating new project opportunities, including investment
in munitions facilities, the majority of which are expected to be
steel-intensive. Transport infrastructure also remains a key area of growth
for the Group, and we welcome the Government's continued focus on improving
connectivity and unlocking regional opportunity. We are making good progress
on HS2 station opportunities, including Birmingham Interchange, and on the
TransPennine Route Upgrade. More broadly, recent announcements have included
investment in local transport schemes across England's city regions, rail
network enhancements, a new pipeline of major road network projects, and
support for the Heathrow expansion, all of which are expected to create
further opportunities for the Group.
In Europe, the outlook is similarly positive, with the green energy transition
driving sustained public investment in infrastructure. We are seeing a notable
increase in the volume of power transmission and distribution projects coming
to market, alongside continued investment in transport and energy
infrastructure.
Modular Solutions
£m H1 2026 H1 2025 Change
Revenue 9.6 9.8 -2%
Underlying operating profit/(loss) (before JVs and associates) (1.1) 0.1 (1.2)
Share of results of CMF (0.3) 0.3 (0.6)
Underlying profit/(loss) before tax (1.4) 0.4 (1.8)
Revenue of £9.6m (H1 2025: £9.8m) represents a slight decrease compared to
the prior period, and the division reported an underlying operating loss of
£1.1m (H1 2025: profit of £0.1m). The lack of growth in H1 reflects delays
to higher-margin Severstor orders, which are now expected to be delivered in
H2, whilst lower profitability reflects a sub-optimal mix of work which has
driven lower factory overhead recoveries. The divisional underlying loss
before tax of £1.4m (H1 2025: £0.4m) includes the post-tax share of loss
from CMF of £0.3m (H1 2025: profit of £0.3m). The reduced profitability at
CMF was driven by lower volumes during the period, reflecting subdued H1
activity levels in the Group's Commercial and Industrial division, where
projects typically include substantial metal decking and purlin packages.
SMS delivered a mixed performance in H1, with challenging market conditions
contributing to delays in the conversion and delivery of several large
projects. Nonetheless, the modular frames business made encouraging progress,
securing new contracts across a range of sectors and strengthening
relationships with new customers.
INDIA
£m H1 2026 H1 2025 Change
Revenue 65.8 49.3 +34%
EBITDA 6.4 3.8 +68%
Operating profit 4.7 2.5 +88%
Operating margin 7.1% 5.1% +200 bps
Finance expense (2.1) (2.5) +0.4
Profit before tax 2.6 - +2.6
Tax 0.6 0.2 +0.4
Profit after tax 2.0 0.2 1.8
Group share of profit after tax (50%) 1.0 0.1 0.9
In the first half of FY26, JSSL recorded an output of 48,000 tonnes, including
sub-contracted work, an improvement of 17,000 tonnes on the prior period
output of 31,000 tonnes. This increased activity is evident in the Group's
higher after-tax share of profit of £1.0m (H1 2025: £0.1m). The improved
performance reflects an increase in revenue of 34 per cent to £65.8m and
improved operating margins of 2 per cent, mainly reflecting a better mix of
work and improved overhead recoveries driven by higher factory activity
levels. Financing expenses of £2.1m (H1 2025: £2.5m) are £0.4m lower than
the previous year, reflecting a reduction in borrowings, and result in a
profit before tax of £2.6m (H1 2025: £nil).
India's construction sector continues to grow strongly, with rising demand for
steel driven by sustained public and private investment in manufacturing,
energy, and transport infrastructure. This momentum is reflected in a record
order book at 1 November of £286m (1 July: £240m), comprising a strong mix
of higher-margin commercial work at 80 per cent (1 July: 86 per cent). The
order book comprises a number of major data centre projects, together with
substantial industrial buildings packages and work across the commercial, data
centre and broader industrial sectors.
The expanding market landscape is also evident in a strengthening pipeline of
potential orders and numerous growth opportunities across target sectors,
including commercial real estate, data centres, warehousing, infrastructure,
and manufacturing, notably in steel, cement, and speciality chemicals. JSSL is
actively pursuing opportunities in emerging sectors and export markets,
leveraging its brand and reputation for delivering high-quality steel
solutions.
Development of the new 55-acre site at Gujarat commenced in FY25, with new
open yard and factory production facilities expected to be completed and
operational within the current year. This will increase JSSL's in-house
production capacity from approximately 114,000 tonnes to around 184,000
tonnes. Further expansion at Gujarat is planned in future years which, once
complete, will increase JSSL's combined factory capacity (Bellary and Gujarat)
to approximately 265,000 tonnes, or around 350,000 tonnes including
sub-contracted work. The majority of this investment is being financed through
debt facilities provided directly to JSSL by Indian lenders.
Value continues to build in JSSL, which remains well positioned to capitalise
on the favourable outlook for the Indian economy and the strong underlying
demand for structural steel. We remain confident in the long-term growth
trajectory of the market and the value creation potential of the business.
Paul
McNerney
Jan Bramall
Chief Executive
Officer
Interim Chief Financial Officer
Condensed consolidated interim financial statements
Consolidated income statement
Six months ended Six months ended Year ended
27 September 2025 (unaudited) 28 September 2024 (unaudited) 29 March 2025 (audited)
Non-underlying Non-underlying Non-underlying
Underlying £000 Total Underlying £000 Total Underlying£000 £000 Total
£000 £000 £000 £000 £000
Revenue 206,046 - 206,046 252,253 - 252,253 450,913 - 450,913
Operating costs (203,770) (8,159) (211,929) (235,102) (21,769) (256,871) (429,260) (35,475) (464,735)
Operating profit/(loss) before share of results of JVs and associates 2,276 (8,159) (5,883) 17,151 (21,769) (4,618) 21,653 (35,475) (13,822)
Share of results of JVs and associates 706 - 706 402 - 402 101 - 101
Operating profit/(loss) 2,982 (8,159) (5,177) 17,553 (21,769) (4,216) 21,754 (35,475) (13,721)
Net finance expense (2,399) (12) (2,411) (1,465) (85) (1,550) (3,621) (170) (3,791)
Profit/(loss) before tax 583 (8,171) (7,588) 16,088 (21,854) (5,766) 18,133 (35,645) (17,512)
Taxation (9) 2,040 2,031 (3,928) 5,442 1,514 (5,195) 8,620 3,425
Profit/(loss) for the period 574 (6,131) (5,557) 12,160 (16,412) (4,252) 12,938 (27,025) (14,087)
Earnings/(loss) per share:
Basic 0.19p (2.07)p (1.88)p 3.96p (5.34)p (1.38)p 4.28p (8.92)p (4.66)p
Diluted 0.19p (2.07)p (1.88)p 3.96p (5.34)p (1.38)p 4.28p (8.92)p (4.66)p
Further details of non-underlying items are disclosed in note 7 to the
condensed consolidated financial statements.
Consolidated statement of comprehensive income
Six months Six months Year
ended ended ended
27 September 2025 28 September 2024 29 March 2025
(unaudited) (unaudited) (audited)
£000 £000 £000
Items that will not be reclassified to income statement:
Actuarial gain on defined benefit pension scheme 582 1,170 2,313
Tax relating to components that will not be reclassified (146) (293) (578)
436 877 1,735
Items that are or may be reclassified to income statement:
Cash flow hedges - reclassified to income statement 287 (647) (1,529)
Exchange difference on foreign operations (641) (269) (5,663)
Tax relating to components that may be reclassified 238 69 175
Gains/(losses) taken to equity on cash flow hedges (1,237) 374 808
(1,353) (473) (6,208)
Other comprehensive income/(expense) (917) 404 (4,473)
for the period
Loss for the period from continuing operations (5,557) (4,252) (14,087)
Total comprehensive expense for the period attributable to equity shareholders (6,474) (3,848) (18,560)
of the parent
Consolidated balance sheet
At At At
27 September 2025 28 September 2024 29 March 2025
(unaudited) (unaudited) (audited)
£000 £000 £000
ASSETS
Non-current assets
Goodwill 98,401 98,469 97,587
Other intangible assets 1,472 4,159 2,809
Property, plant and equipment 92,839 95,815 96,699
Right-of-use assets 19,356 18,078 20,051
Interests in JVs and associates 31,964 37,763 32,936
Deferred tax assets 1,584 1,828 1,584
Contract assets, trade and other receivables 2,900 3,236 2,618
248,516 259,348 254,284
Current assets
Inventories 9,988 10,872 11,809
Contract assets, trade and other receivables 85,645 100,582 116,393
Current tax asset 3,569 7,028 2,793
Derivative financial instruments - 669 103
Cash and cash equivalents 31,963 9,422 15,520
131,165 128,573 146,618
Total assets 379,681 387,921 400,902
LIABILITIES
Current liabilities
Overdraft - (4,307) -
Trade and other payables (82,910) (96,322) (82,092)
Provisions (27,797) (23,860) (30,508)
Derivative financial instruments (747) - -
Financial liabilities - borrowings (8,100) (6,200) (6,200)
Financial liabilities - leases (3,641) (2,616) (4,097)
(123,195) (133,305) (122,897)
Non-current liabilities
Trade and other payables - (540) (130)
Provisions (2,305) - (7,581)
Retirement benefit obligations (5,002) (9,145) (6,855)
Financial liabilities - borrowings (45,700) (10,700) (52,600)
Financial liabilities - leases (15,972) (15,754) (16,364)
Deferred tax liabilities (11,314) (11,825) (11,515)
(80,293) (47,964) (95,045)
Total liabilities (203,488) (181,269) (217,942)
NET ASSETS 176,193 206,652 182,960
EQUITY
Share capital 7,405 7,639 7,405
Share premium 88,522 85,590 88,522
Other reserves (3,877) 3,435 (924)
Retained earnings 84,143 109,988 87,957
TOTAL EQUITY 176,193 206,652 182,960
Consolidated statement of changes in equity
Share Share Other Retained Total
Capital premium reserves earnings equity
£000 £000 £000 £000 £000
At 30 March 2025 7,405 88,522 (924) 87,957 182,960
Total comprehensive expense for the period - - (1,591) (4,883) (6,474)
Equity settled share-based payments - - (1,362) 1,069 (293)
At 27 September 2025 (unaudited) 7,405 88,522 (3,877) 84,143 176,193
Share Share Other Retained Total
Capital premium reserves earnings equity
£000 £000 £000 £000 £000
At 31 March 2024 7,739 88,522 4,728 119,762 220,751
Total comprehensive expense for the period - - (542) (3,306) (3,848)
Equity settled share-based payments - - (920) 1,808 888
Purchase of shares - - (4,128) - (4,128)
Allocation of owned shares - - 1,265 (1,265) -
Shares cancelled (100) (2,932) 3,032 - -
Dividend provided for or paid* - - - (7,011) (7,011)
At 28 September 2024 (unaudited) 7,639 85,590 3,435 109,988 206,652
*The 2024 final dividend of £7.0m was paid to shareholders on 11 October
2024.
Share Share Other Retained Total
Capital premium reserves earnings equity
£000 £000 £000 £000 £000
At 31 March 2024 7,739 88,522 4,728 119,762 220,751
Total comprehensive income for the year - - (6,383) (12,177) (18,560)
Equity settled share-based payments - - (920) 2,115 1,195
Purchase of shares - - (9,262) - (9,262)
Cancellation of owned shares (334) - 9,596 (9,262) -
Allocation of owned shares - - 1,317 (1,317) -
Dividend provided for or paid - - - (11,164) (11,164)
At 29 March 2025 (audited) 7,405 88,522 (924) 87,957 182,960
Consolidated cash flow statement
Six months ended Six months ended Year
27 September 2025 28 September 2024 ended
(unaudited) (unaudited) 29 March
£000 £000 2025
(audited)
£000
Net cash flow from operating activities 24,440 6,817 (522)
Cash flows from investing activities
Proceeds on disposal of property, plant and equipment 210 242 909
Proceeds on disposal of land and buildings 3,004 - -
Purchases of land and buildings - - (32)
Purchases of other property, plant and equipment (1,651) (3,109) (7,796)
Payment of deferred and contingent consideration - (120) (120)
Net cash generated by/(used in) investing activities 1,563 (2,987) (7,039)
Cash flows from financing activities
Interest paid (2,399) (1,115) (3,185)
Dividends paid - - (11,164)
Proceeds from borrowings - - 45,000
Repayment of borrowings (5,000) (3,100) (6,200)
Repayment of lease liabilities (2,161) (1,399) (3,208)
Purchase of shares (net of SAYE cash received) - (3,495) (8,556)
Net cash (used in)/generated from financing activities (9,560) (9,109) 12,687
Net increase/(decrease) in cash and cash equivalents 16,443 (5,279) 5,126
Cash and cash equivalents at beginning 15,520 10,394 10,394
of period
Cash and cash equivalents at end of period 31,963 5,115 15,520
Notes to the condensed consolidated interim financial information
1) General information
Severfield plc ('the Company') is a company incorporated and domiciled in the
UK. The address of its registered office is Severs House, Dalton Airfield
Industrial Estate, Dalton, Thirsk, North Yorkshire, YO7 3JN. The Company is
listed on the London Stock Exchange.
The condensed consolidated interim financial information does not constitute
the statutory financial statements of the Group within the meaning of section
435 of the Companies Act 2006. The statutory financial statements for the year
ended 29 March 2025 were approved by the board of directors on 24 July 2025
and have been delivered to the registrar of companies. The report of the
auditors on the statutory financial statements was unqualified, did not draw
attention to any matters by way of emphasis, and did not contain any statement
under section 498 of the Companies Act 2006.
The condensed consolidated interim financial information for the six months
ended 27 September 2025 was approved for issue by the board of directors on 1
December 2025.
2) Basis of preparation
The condensed consolidated interim financial statements for the six months
ended 27 September 2025 have been prepared in accordance with the UK-adopted
International Accounting Standard 34 'Interim Financial Reporting' as adopted
for use in the UK and the Disclosure Guidance and Transparency Rules of the
Financial Conduct Authority.
The interim financial statements have been prepared using the same accounting
policies and presentation as those applied in the preparation of the statutory
financial statements for the year ended 29 March 2025, which were prepared in
accordance with UK-adopted International Accounting Standards (IFRS) and the
requirements of the Companies Act 2006.
Going concern
In determining whether the Group's consolidated financial statements should be
prepared on a going concern basis, the Directors have considered all factors
likely to affect its future development, performance and financial position,
including cash flows, liquidity, borrowing facilities, and risks and
uncertainties relating to the Group's business activities and the wider
economic environment. Relevant considerations included:
• The Group's latest forecast for the period
• The Group's secured order book in the UK and Europe and pipeline of
potential future orders
• The Group's cash position and committed borrowing facilities which are
available until December 2027, including associated financial covenants
• Current trading conditions and the potential impact of downside risks
linked to the Group's principal risks
In the current financial year (along with the prior financial year), the
Group's profitability and cash flows were adversely impacted by challenging
market conditions and the costs associated with the ongoing programme of
bridge remedial works. Nevertheless, the Group delivered an underlying profit
before tax of £0.6m, generated strong operating cashflows and had maintained
a strong order book of £429m as at 1 November 2025, providing a good volume
of secured work and earnings visibility over the going concern period.
The Directors have assessed the Group's ability to continue as a going concern
for at least 12 months from the date of approval of the financial statements.
This included reviewing financial forecasts under a base case and a 'severe
but plausible' (downside) scenario. The base case scenario indicates that the
Group will maintain sufficient liquidity and covenant headroom over the going
concern period. Stress testing to assess the Group's resilience to potential
adverse outcomes was performed by adopting severe but plausible downside
scenarios, including:
• Securing a reduced proportion of uncontracted work over the next 12 months
• Incurring one-off contract losses or additional bridge remedial costs
In July 2025, the Group entered into a share purchase option agreement with
JSW Steel, granting it the right, but not the obligation, to dispose of an
interest of up to 24.9 per cent in JSSL, for up to £20m, exercisable, at the
Group's sole discretion, at any time on or before 31 March 2026. The option
reflects the Board's prudent approach to strategic planning and provides the
Group with additional financial flexibility in order to meet covenants in
severe downside scenarios. The Board confirms there is no current intention to
exercise the option and any decision to do so, and to dispose of any of its
shareholding in JSSL, would only be made following a rigorous business case
assessment.
Under the downside scenario, the Group maintains adequate liquidity throughout
the going concern assessment period and, continues to meet all covenant
requirements.
Based on the above and having made appropriate enquiries, the Directors
consider it reasonable to assume that the Group has adequate resources to
continue for the going concern period and assesses that it will remain in
compliance with financial covenants and, for this reason, have continued to
adopt the going concern basis in preparing the condenses consolidated interim
financial information.
3) Accounting policies
The accounting policies applied in this interim report are consistent with
those used in the Group's financial statements for the year ended 29 March
2025, except as noted below:
Taxation
Taxes on profits and losses in interim periods are accrued using the tax rate
that is expected to be applicable to total earning for the full year based on
enacted rates at the interim date.
No new accounting standards or interpretations that became effective during
the current reporting period have had a material impact on the Group's
disclosures, financial position, or performance.
Critical accounting judgements and estimates
In preparing these condensed consolidated interim financial statements, the
significant judgements made by management in applying the Group's accounting
policies, together with the key sources of estimation uncertainty, are
consistent with those applied in the consolidated financial statements for the
year ended 29 March 2025.
4) Risks and uncertainties
The principal risks and uncertainties which could have a material impact upon
the Group's performance over the remaining six months of the year ending 28
March 2026, other than as disclosed below, have not changed from those
disclosed on pages 82 to 87 of the strategic report included in the annual
report for the year ended 29 March 2025. The annual report is available on the
Company's website www.severfield.com. These risks and uncertainties include,
but are not limited to:
· Health and safety
· Supply chain
· People
· Commercial and market environment
· Mispricing a contract (at tender)
· Cyber security
· Failure to mitigate onerous contract terms
· Industrial relations
· Product risk
The preparation of the condensed consolidated interim financial statements
under IFRS requires management to make judgements, assumptions and estimates
that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expense. Assumptions and estimates are
reviewed on an ongoing basis and any revisions to them are recognised in the
period in which they are revised.
Revenue and profit recognition
Revenue recognition under long-term construction contracts involves
significant estimation uncertainty. In accordance with IFRS 15, the Group
recognises revenue and profit over time based on the proportion of work
completed. This requires management to estimate both total contract
consideration and total contract costs, which are then used to determine the
stage of completion, assess the recoverability of contract assets, and
evaluate whether a contract loss provision is required.
These estimates are based on management's assessment of the recovery of
pre-contract costs, surveys of progress against the construction programme,
changes in design and work scope, the contractual terms and site conditions
under which the work is being performed, delays, costs incurred, claims
received by the Group, external certification of the work performed and the
recoverability of any unagreed income from claims and variations.
Where the total estimated costs exceed total contract revenue, a contract loss
provision is recognised. This is measured at the present value of the lower of
expected costs of terminating the contract and the expected net costs to
complete, based on both the incremental costs of fulfilling the obligation
under the contract and an allocation of other costs directly related to
fulfilling the contract.
Management continually reviews the estimated final outturn on contracts and
makes adjustments where necessary. The Group has considered the nature of the
estimates involved in determining these contract outcomes and concluded that
it is reasonably possible, on the basis of existing knowledge, that actual
results within the next financial year may differ from the assumptions applied
at the balance sheet date and could result in a material adjustment to the
carrying amounts of related assets and liabilities.
For a limited number of long-term contracts, revenue and profit has been
recognised based on estimates that are sensitive to future events and
assumptions. These include estimates relating to the recoverability of claims,
future cost escalation, and entitlement to variations. However, due to the
level of uncertainty, combination of cost and income variables and timing
across a large portfolio of contracts at different stages of their contract
life, it is impracticable to provide a quantitative analysis of the estimates
that are made at a portfolio level.
Within this portfolio, there are a limited number of long-term contracts that
contain variable consideration subject to the IFRS 15 constraint. Accordingly,
revenue and profit have been recognised only to the extent that management has
determined it is highly probable that a significant reversal of cumulative
revenue will not arise. There are a host of factors affecting potential
outcomes in respect of these entitlements, including claim recoverability,
entitlement to variations, and cost forecasts, which could result in a range
of reasonably possible outcomes on these contracts in the following financial
year, ranging from a gain of £12,000,000 to a loss of £8,000,000, excluding
the impact of bridge testing and remedial costs.
Management has assessed the range of reasonably possible outcomes on this
limited number of contracts based on facts and circumstances that were present
and known at the balance sheet date. As with any contract applying long-term
contract accounting, these estimates are affected by a variety of
uncertainties that depend on future events and are therefore subject to change
as the contracts progress.
At the balance sheet date, amounts due from construction contract customers,
included in contract assets, trade and other receivables was £32,860,000 (29
March 2025: £47,685,000).
5) Segmental analysis
In line with the requirements of IFRS 8, operating segments are identified on
the basis of the information that is regularly reported and reviewed by the
chief operating decision maker ('CODM'). The Group's CODM is deemed to be the
Executive Committee, who are primarily responsible for the allocation of
resources and the assessment of performance of the segments. Consistent with
previous periods, management continues to identify multiple operating
segments, primarily at an individual statutory entity level, which are
reported and reviewed by the CODM. For the purpose of presentation under IFRS
8, the individual operating segments meet the aggregation criteria that allows
them to be aggregated and presented as one reportable segment for the Group.
§ Core Construction Operations - comprising the combined results of the
Commercial and Industrial ('C&I') and Nuclear and Infrastructure
('N&I') divisions, including the results of our European operations.
§ Modular Solutions - comprising Severfield Modular Solutions ('SMS') and
the Group's share of profit (50 per cent) from the joint venture company,
Construction Metal Forming Limited ('CMF').
The constituent operating segments that make up 'Core Construction Operations'
have been aggregated because the nature of the products across the businesses,
whilst serving different market sectors, are consistent in that they relate to
the design, fabrication and erection of steel products. They have similar
production processes and facilities, types of customers, methods of
distribution, regulatory environments and economic characteristics. This is
reinforced through the use of shared production facilities across the Group.
The C&I and N&I divisions presented in the interim statement were
established in April 2022 to provide better client service and increased
organisational clarity, both internally and externally. These still meet the
aggregation criteria to be presented as one reportable segment under IFRS 8
and are therefore presented as such.
Segment assets and liabilities are not presented as these are not reported to
the CODM.
Segmental results
Core Construction Operations Modular Solutions JSSL Central costs/ elimination Total
Period ended 27 September 2025: £000 £000 £000 £000 £000
Revenue 199,265 9,614 - (2,833) 206,046
Underlying operating profit 3,419 (1,143) - - 2,276
Underlying operating profit margin 1.7% (11.9)% 1.1%
Result from joint ventures
- CMF - (304) - - (304)
- JSSL - - 1,010 1,010
Finance costs - - - (2,399) (2,399)
Underlying profit before tax 3,419 (1,447) 1,010 (2,399) 583
Non-underlying items (note 7) (8,159) - - (12) (8,171)
(Loss)/profit before tax (4,740) (1,447) 1,010 (2,411) (7,588)
Other material items of income and expense:
- Depreciation of owned property, plant and equipment (3,404) (189) - - (3,593)
- Depreciation of right-of-use assets (1,919) (42) - - (1,961)
- Other operating income 923 120 - - 1,043
Core Construction Operations Modular Solutions JSSL Central costs/ elimination Total
Period ended 28 September 2024: £000 £000 £000 £000 £000
Revenue 247,171 9,794 - (4,712) 252,253
Underlying operating profit 17,137 14 - - 17,151
Underlying operating profit margin 6.9% 0.1% 6.8%
Result from joint ventures
- CMF - 351 - - 351
- JSSL - - 51 51
Finance costs - - - (1,465) (1,465)
Underlying profit before tax 17,137 365 51 (1,465) 16,088
Non-underlying items (note 7) (21,769) - - (85) (21,854)
Profit before tax (4,632) 365 51 (1,550) (5,766)
Other material items of income and expense:
- Depreciation of owned property, plant and equipment (3,442) (78) - - (3,520)
- Depreciation of right-of-use assets (1,248) (21) - - (1,269)
- Other operating income 1,512 251 - - 1,763
Core Construction Operations Modular Solutions JSSL Central costs/ elimination Total
52 week ended 29 March 2025: £000 £000 £000 £000 £000
Revenue 435,448 24,152 - (8,687) 450,913
Underlying operating profit 21,285 368 - - 21,653
Underlying operating profit margin 4.9% 1.5% 4.8%
Result from joint ventures
- Bouwcombinatie Van Wijnen 6 - - - 6
- CMF - 8 - - 8
- JSSL - - 87 - 87
Finance costs - - - (3,621) (3,621)
Underlying profit before tax 21,291 376 87 (3,621) 18,133
Non-underlying items (note 7) (36,610) - - 965 (35,645)
Profit before tax (15,319) 376 87 (2,656) (17,512)
Other material items of income and expense:
- Depreciation of owned property, plant and equipment (7,028) (189) - - (7,217)
- Depreciation of right-of-use assets (2,687) (42) - - (2,729)
- Other operating income 2,557 344 - - 2,901
Revenue
All revenue is derived from construction contracts and related assets.
Additional disclosures are made under IFRS 15 to enable users to understand
the relative size of the divisions. An analysis of the Group's revenue is as
follows:
Half year Year ended 29 March 2025
2026 2025
£000 £000 £000
Construction contracts:
- Commercial and Industrial 143,524 205,016 349,588
- Nuclear and Infrastructure 55,741 42,155 85,860
Core Construction Operations 199,265 247,171 435,448
Modular Solutions 9,614 9,794 24,152
Elimination of inter-segment revenue (2,833) (4,712) (8,687)
Total Group revenue 206,046 252,253 450,913
Geographical information
The following table presents revenue according to the primary geographical
markets in which the Group operates. This disaggregation of revenue is
presented for the Group's two operating segments.
Half year Year ended 29 March 2025
2026 2025
Core Construction Operations - revenue by destination £'000 £'000 £'000
United Kingdom 121,432 157,411 265,300
Republic of Ireland and continental Europe 77,833 89,760 170,148
199,265 247,171 435,448
Half year Year ended 29 March 2025
Modular Solutions - revenue by destination 2026 2025
£'000 £'000 £'000
United Kingdom 9,533 9,135 23,007
Republic of Ireland and continental Europe 81 659 1,145
9,614 9,794 24,152
Elimination of intercompany revenue (UK) (2,833) (4,712) (8,687)
6,781 5,082 15,465
6) Seasonality
There are no seasonal variations which impact the split of revenue between the
first and second half of the financial year. Underlying movements in contract
timing and phasing, which are an ongoing feature of the business, will
continue to drive moderate fluctuations in half yearly revenues and profits.
7) Non-underlying items
March
2
At At At
27 September 2025 28 September 2024 29 March
£000 £000 2025
£000
Operating costs (8,159) (21,769) (35,475)
Finance expense (12) (85) (170)
Non-underlying items before tax (8,171) (21,854) (35,645)
Tax on non-underlying items 2,040 5,442 8,620
Non-underlying items after tax (6,131) (16,412) (27,025)
1
Non-underlying items before tax consist of: At At At
27 September 2025 28 September 2024 29 March
£000 £000 2025
£000
Amortisation of acquired intangible assets (1,305) (1,305) (2,609)
Bridge testing and remedial costs - (20,364) (43,367)
Insurance recovery - - 20,000
Refinancing-related costs (1,424) - -
Legacy employment tax charge - (100) 1,373
Other bridge-related costs (3,329) - (9,159)
Other non-underlying costs (2,101) - (2,848)
Unwinding of discount on contingent consideration (12) (85) (170)
FV adjustment to contingent consideration - - 1,135
Non-underlying items before tax (8,171) (21,854) (35,645)
Amortisation of acquired intangible assets represents the amortisation of
customer relationships, order books and brand name, which were identified on
the acquisition of DAM Structures and the Voortman Steel Construction Group.
Refinancing-related costs of £1.4m were incurred in connection with the
amendment and extension of the Group's core debt facilities in July 2025.
These costs primarily consist of arrangement fees, legal fees, and advisory
expenses, and reflect the extension of the facility's maturity to December
2027.
In the prior year we recognised bridge testing and remedial costs of £43.4m
related to the ongoing programme of bridge remedial work. This was partially
offset by £20m of insurance recoveries which was received during the period
to 27 September 2025. During the year the testing and remedial programmes have
continued to progress in line with expectation and there has been no change to
the forecast costs.
Other bridge-related costs of £3.3m comprise provisions for third-party
consequential costs and claims received since the FY25 results announcement in
July. Whilst the Group continues to challenge certain elements of these
claims, a conservative provision has been recognised. All third-party items,
including those recorded in FY25, remain subject to continued detailed review,
ongoing dialogue and legal process, as well as the application of contractual
liability caps.
Other non-underlying costs of £2.1m include certain one-off business
transformation, legal and consultancy costs, together with executive director
severance and recruitment costs.
Non-underlying items have been separately identified by virtue of their
magnitude or nature to enable a full understanding of the Group's financial
performance and to make year-on-year comparisons. They are excluded by
management for planning, budgeting and reporting purposes and for the internal
assessment of operating performance across the Group and are normally excluded
by investors, analysts and brokers when making investment and other decisions.
For an item to be considered as non-underlying, it must satisfy at least one
of the following criteria:
• A significant item, which may span more than one accounting period
• An item directly incurred as a result of either a business
combination, disposal, or related to a major business change or restructuring
programme
• An item which is unusual in nature (outside the normal course of
business)
Non-underlying items have included the non-cash amortisation of acquired
intangible assets, acquisition and related transaction costs, and fair value
adjustments for contingent consideration, all of which arise from business
combinations and are classified as non-underlying due to the nature and
infrequency of the events giving rise to them. Other non-underlying items have
included, but are not limited to, significant rectification and remedial
contract costs, business transformation costs, executive director recruitment
and severance costs, certain one-off legal and consultancy costs, redundancy
costs arising from transformation activities, and impairments.
Non-underlying items are presented as a separate column within their related
consolidated income statement category on a consistent basis for each half
year and full year results. The exclusion of non-underlying items may result
in underlying earnings being materially higher or lower than total earnings.
In particular, when items associated with purchase price allocations on
business combinations are excluded, underlying earnings will be higher than
total earnings.
Accordingly, certain alternative performance measures ('APMs') have been used
throughout this report to supplement rather than replace the measure provided
under IFRS, see note 17 for further details.
8) Taxation
The corporation tax expense reflects the estimated effective tax rate of 25
per cent on the profit/loss before taxation for the Group for the period
ending 27 September 2025.
9) Dividends
March 2022
Six months ended Six months ended Year
27 September 2025 28 September 2024 ended
£000 £000 29 March 2025
£000
2024 final - 2.3p per share - (7,011) (7,013)
2025 interim - 1.4p per share - - (4,151)
2025 final - nil per share - - -
- (7,011) (11,164)
No interim dividend has been declared for the period ended 27 September 2025
(H1 2025: 1.4p per share), and the associated dividend payment is therefore
£nil (H1 2025: £4,151,000).
10) Earnings per share
Earnings per share is calculated as follows:
March
5
Six months ended Six months ended Year
27 September 2025 28 September 2024 ended
£000 £000 29 March
2025
£000
Earnings for the purposes of basic earnings per share being net (loss)/profit (5,557) (4,252) (14,087)
attributable to equity holders of the parent company
Earnings for the purposes of underlying basic earnings per share being 574 12,160 12,938
underlying net profit attributable to equity holders of the parent company
Number of shares Number Number Number
Weighted average number of ordinary shares for the purposes of basic earnings 295,586,440 307,188,953 302,512,024
per share
Effect of dilutive potential ordinary shares and under share plans - - -
Weighted average number of ordinary shares for the purposes of diluted 295,586,440 307,188,953 302,512,024
earnings per share
Basic (loss)/earnings per share (1.88)p (1.38)p (4.66)p
Underlying basic earnings per share 0.19p 3.96p 4.28p
Diluted (loss)/earnings per share (1.88)p (1.38)p (4.66)p
Underlying diluted earnings per share 0.19p 3.96p 4.28p
11) Property, plant and equipment
During the period, the Group acquired land and buildings of £nil (H1 2025:
£nil) and other property, plant and equipment of £1,651,000 (H1 2025:
£3,109,000). The Group also disposed of land and buildings of £3,004,000 (H1
2025: £nil) and other property, plant and equipment for £210,000 (H1 2025:
£242,000) resulting in a gain on disposal of £1,120,000 (H1 2025:
£134,000).
12) Provisions
1
1
Legacy employment taxes Bridge testing and remedial costs Loss provisions
£000 £000 £000 Total
£000
Balance at 30 March 2024 3,373 - 8,446 11,819
Provisions made during the year - 43,367 4,445 47,812
Provisions released during the year (1,373) - - (1,373)
Provisions used during the year - (16,036) (4,133) (20,169)
Balance at 29 March 2025 2,000 27,331 8,758 38,089
Provisions made during the period - 3,233 4,588 7,821
Provisions used during the period (994) (10,244) (4,570) (15,808)
Balance at 27 September 2025 1,006 20,320 8,776 30,102
Current 1,006 20,320 6,471 27,797
Non - current - - 2,305 2,305
Legacy employment tax charge
During 2024, HMRC raised an assessment for historical income tax and national
insurance ('NIC') liabilities. The Group reached a final settlement with HMRC
during the prior year, reducing the liability to £2.0m and therefore
recording a credit of £1.4m in non-underlying items. During the period we
have partially paid the settlement, with the remaining payment due in the
second half of the year.
Loss provisions
The Group has recognised provisions for contract losses where the expected
costs of fulfilling construction contract obligations exceed the forecast
revenue. These assessments are performed in accordance with the criteria set
out in IFRS 15 and as described in the accounting policy note in the financial
statements for the year ended 29 March 2025.
Bridge remedial provisions
The provision for bridge remedial costs relates to the Group's ongoing bridge
testing and remedial programme and reflects management's best estimate of the
total expected costs associated with all the affected bridge projects together
with an assessment of third-party consequential costs and claims. Based on
current estimated programme durations, the provision is expected to be
utilised over the next 12 months. The provision has increased in the year for
third party contra claims and a corresponding charge has been recognised in
non-underlying items.
The Group is able to reliably estimate the direct costs associated with the
testing and remedial programme and certain third-party costs and claims. All
third-party items, including those recorded in FY25, remain subject to
continued detailed review, ongoing dialogue and legal process, as well as the
application of contractual liability caps. See note 16 on contingent
liabilities for further details.
13) Net debt
1
1
At At At
27 September 2025 28 September 2024 29 March
£000 £000 2025
£000
Borrowings (53,800) (16,900) (58,800)
Cash and cash equivalents 31,963 5,115 15,520
Unamortised debt arrangement costs 107 193 150
Net debt (pre-IFRS 16) (21,730) (11,592) (43,130)
IFRS 16 lease liabilities (19,613) (18,370) (20,461)
Net debt (post-IFRS 16) (41,343) (29,962) (63,591)
The Group also presents net debt/funds on a pre-IFRS 16 basis as lease
liabilities are excluded from the definition of net debt/funds as set out in
the Group's borrowing facilities.
14) Net cash flow from operating activities
March
2
Six months ended Six months ended Year
27 September 2025 28 September 2024 ended
£000 £000 29 March
2025
£000
Loss before tax (7,588) (5,766) (17,512)
Adjustments:
Net finance expense 2,411 1,550 3,791
Depreciation of property, plant and equipment 3,593 3,520 7,217
Right-of-use asset depreciation 1,939 1,269 2,729
Gain on disposal of other property, plant and equipment (1,120) (134) (413)
Amortisation of intangible assets 1,338 1,350 2,699
Movements in pension scheme liabilities (1,271) (1,149) (2,296)
Share of results of JVs and associates (706) (402) (101)
FX movements 122 (82) 100
Share-based payments (286) 256 489
Operating cash flows before movements in working capital (1,568) 412 (3,297)
Decrease/(increase) in inventories 1,821 776 (161)
Decrease/(increase) in receivables 31,840 (13,310) (30,597)
(Decrease)/increase in payables (7,281) 21,548 27,999
Cash generated from operations 24,812 9,426 (6,056)
Tax paid (372) (2,609) 5,534
Net cash flow from operating activities 24,440 6,817 (522)
15) Related party transactions
There have been no changes in the nature of related party transactions as
described in note 31 on page 208 of the annual report for year ended 29 March
2025 and there have been no new related party transactions which have had a
material effect on the financial position or performance of the Group in the
six months ended 27 September 2025, except as stated below.
During the period, the Group provided services in the ordinary course of
business to its Indian joint venture, JSW Severfield Structures ('JSSL') and
in the ordinary course of business contracted with and purchased services from
its UK joint venture, Construction Metal Forming Limited ('CMF'). The Group's
share of the retained profit in JVs and associates of £706,000 (H1 2025:
£402,000) for the period reflects a profit from JSSL of £1,010,000 (H1 2025:
£51,000) and a loss from CMF of £304,000 (H1 2025: £351,000 profit).
During the period, the Group has sold services to its Indian joint venture
('JSSL') of £nil (H1 2025: £274,000). The amount due from JSSL at 27
September 2025 was £137,000 (29 March 2025: £27,000).
During the period, the Group has purchased services from CMF of £4,028,000
(H1 2025: £6,381,000). The amounts due to and from CMF at 27 September 2025
were £nil (29 March 2025: £697,000) and £847,000 (29 March 2025: £nil)
respectively.
16) Contingent assets and liabilities
Liabilities have been recorded for the directors' best estimate of uncertain
contract positions, known legal claims, legal actions in progress and
circumstances that could give rise to claims or actions. The Group takes legal
advice as to the likelihood of the success of, and the likely value of, such
claims and actions and no liability is recorded where the directors consider,
based on that advice, that the claim or action is unlikely to succeed, or that
the Group cannot make a sufficiently reliable estimate of the potential
obligation or liability arising out of such claim or action.
During the prior year, the Group identified a number of bridge structures that
did not comply with clients' weld specification requirements. These issues
related primarily to a specific bridge design specification and associated
welding procedures applied across a number of projects.
A non-underlying charge was recognised in the prior year in respect of the
estimated costs of testing and remediation across affected structures,
together with provisions for certain related receivables and third-party
consequential costs and claims. A corresponding insurance recovery was also
recognised for amounts agreed with the Group's professional indemnity
insurers. Expenditure has continued during the current period, with remaining
obligations reflected within provisions and contract balances, as appropriate.
The Group continues to estimate the direct costs of completing the testing and
remedial programme, as well as certain client consequential costs. In the
period, the provision increased by £3.3m following notification of additional
consequential costs. Although the ultimate financial impact of any further
claims or revisions to cost estimates remains subject to uncertainty, based on
information currently available, the Group is not aware of any obligations
that would require recognition beyond the amounts provided. This will continue
to be reassessed as the testing and remedial programmes progress.
In addition to the insurance recoveries recognised to date, the Group
continues to pursue other potential avenues of recovery, including further
insurance recoveries and contributions from third parties. No amounts have
been recognised for these potential recoveries at this stage as they are not
yet sufficiently certain.
The Company and its subsidiaries have provided unlimited multilateral
guarantees to secure any bank overdrafts and loans of all other Group
companies. At 27 September 2025, this amounted to £nil (29 March 2025:
£nil). The Group has also given performance bonds in the normal course of
trade.
17) Alternative performance measures
Our alternative performance measures ('APM's) present useful information,
which supplements the financial statements. These measures are not defined
under IFRS and may not be directly comparable with APMs for other companies.
The APMs represent important measures for how management monitors the Group
and its underlying business performance. In addition, APMs enhance the
comparability of information between reporting periods by adjusting for
non-underlying items. The APMs are not intended to be a substitute for, or
superior to, any IFRS measures of performance.
To facilitate understanding of the APMs used by the Group, and their
relationship to reported IFRS measures, definitions and numerical
reconciliations are set out below.
Alternative performance measure ('APM') Definition Rationale
Underlying operating profit (before JVs and associates) Operating profit before non-underlying items and the results of JVs and Profit measure reflecting underlying trading performance of wholly owned
associates. subsidiaries.
Underlying profit before tax Profit before tax before non-underlying items. Profit measure widely used by investors and analysts.
Underlying basic earnings per share ('EPS') Underlying profit after tax divided by the weighted average number of shares Underlying EPS reflects the Group's operational performance per ordinary share
in issue during the year. outstanding.
Net funds/(debt) (pre-IFRS 16) Balance drawn down on the Group's revolving credit facility, with unamortised Measure of the Group's cash indebtedness before IFRS-16 lease liabilities,
debt arrangement costs added back, less cash and cash equivalents (including which are excluded from the definition of net funds/(debt) in the Group's
bank overdrafts) before IFRS-16 lease liabilities. borrowing facilities. This measure supports the assessment of available
liquidity and cash flow generation in the reporting period.
Reconciliations to IFRS measures
Six months Six months Year
ended ended ended
27 September 2025 28 September 2024 29 March 2025
(unaudited) (unaudited) (audited)
Underlying operating profit/(loss) (before JVs and associates) £000 £000 £000
Underlying operating profit (before JVs and associates) 2,276 17,151 21,653
Non-underlying operating items (8,159) (21,769) (35,475)
Share of results of JVs and associates 706 402 101
Operating Loss (5,177) (4,216) (13,721)
Six months Six months Year
ended ended ended
27 September 2025 28 September 2024 29 March 2025
(unaudited) (unaudited) (audited)
Underlying profit/(loss) before tax £000 £000 £000
Underlying profit before tax 583 16,088 18,133
Non-underlying items (8,171) (21,854) (35,645)
Loss before tax (7,588) (5,766) (17,512)
Six months Six months Year
ended ended ended
27 September 2025 28 September 2024 29 March 2025
(unaudited) (unaudited) (audited)
Underlying basic earnings per share £000 £000 £000
Underlying net profit attributable to equity holders of the parent Company 574 12,160 12,938
Non-underlying items after tax (6,131) (16,412) (27,025)
Net loss attributable to equity holders of the parent Company (5,557) (4,252) (14,087)
Weighted average number of ordinary shares 295,586,440 307,188,953 302,512,024
Underlying basic earnings per share 0.19p 3.96p 4.28p
Basic loss per share (1.88)p (1.38)p (4.66)p
Six months Six months Year
ended ended ended
27 September 2025 28 September 2024 29 March 2025
(unaudited) (unaudited) (audited)
Net debt £000 £000 £000
Borrowings (53,800) (16,900) (58,800)
Cash and cash equivalents 31,963 5,115 15,520
Unamortised debt arrangement costs 107 193 150
Net debt (pre-IFRS 16) (21,730) (11,592) (43,130)
IFRS 16 lease liabilities (19,613) (18,370) (20,461)
Net debt (post-IFRS 16) (41,343) (29,962) (63,591)
18) Cautionary statement
The condensed interim financial statements (interim report) have been prepared
solely to provide additional information to shareholders to assess the Group's
strategies and the potential for those strategies to succeed. The report
should not be relied on by any other party or for any other purpose.
The interim report contains certain forward-looking statements. These
statements are made by the directors in good faith based on the information
available to them up to the time of their approval of this report but such
statements should be treated with caution due to the inherent uncertainties,
including both economic and business risk factors, underlying any such
forward-looking information.
19) Statement of directors' responsibilities
The directors confirm that, to the best of their knowledge, the condensed
consolidated interim financial information has been prepared in accordance
with IAS 34 as adopted for use in the UK, and that the interim report includes
a fair review of the information required by DTR 4.2.7R and DTR 4.2.8R,
namely:
· An indication of important events that have occurred during the
first six months of the financial year and their impact on the condensed
consolidated interim financial information, and a description of the principal
risks and uncertainties for the remaining six months of the financial year;
and
· Material related party transactions that have occurred in the
first six months of the financial year and any material changes in the related
party transactions described in the last annual report and financial
statements.
The maintenance and integrity of the Severfield plc website is the
responsibility of the directors; the work carried out by the auditors does not
involve consideration of these matters and, accordingly, the auditors accept
no responsibility for any changes that may have occurred to the financial
statements since they were initially presented on the website.
Legislation in the United Kingdom governing the preparation and dissemination
of financial statements may differ from legislation in other jurisdictions.
By order of the board
Paul McNerney Jan Bramall
Chief Executive Officer Interim Chief Financial Officer
1 December 2025 1 December 2025
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