Severfield, the Thirsk, North Yorkshire-based steel group, reported higher underlying profit for the first six months of the financial year, but ratcheted down its outlook for the full year as some construction projects get cancelled or postponed. 

For the first half the company said revenue rose 17% to £252.3 million, while underlying profit before tax rose 14% to £16.1 million. 

However, it said underlying profits for the whole year were now expected to be below its previous expectations. In the UK and Europe it said the “previously anticipated recovery in some sectors has been slower than expected and tighter prices are continuing to impact our profitability in the short-term” and that “some large project opportunities for FY25 and FY26 have been either delayed or cancelled.”

Alan Dunsmore, Chief Executive Officer, said: “In the first half of the year, we have delivered further underlying profit growth and have secured some attractive projects which are reflected in our diversified order books.”

“We continue to see some good projects coming to market however, the predicted recovery in certain sectors has been slower than previously anticipated, and pricing has remained tighter for longer than expected. In addition, a number of large project opportunities for FY25 and FY26 have been either delayed or cancelled and, given the current market backdrop, we remain vigilant to the increased risk of delay to expected orders in the short-term. Although the wider market backdrop continues to be challenging, our successful track record and diversified activities give us confidence in delivering the targets we have set for the medium-term.”

“Looking further ahead, we welcome the new government’s budget which established a National Wealth Fund to invest in energy, transport projects and critical national infrastructure. We have a prominent position in market sectors with strong growth potential and are well-positioned to win projects in markets with positive long-term growth trends including in support of a low-carbon economy and those which are driving the green energy transition, providing us with a strong platform to fulfil our strategic growth aspirations.”