Severfield, the Thirsk, North Yorkshire-based international steel group, has reported a loss before tax of £17.5 million for the year to March 29, 2025, with revenue slipping 3% to £450.9 million.
The company said tough market conditions in the UK and Europe combined with an ongoing bridge remedial works programme contributed to “weaker financial results.”
However, the firm reported a diversified UK and Europe order book of £444 million at July 1, 2025, of which £324 million is for delivery over the next 12 months, including new industrial, data centre, infrastructure, energy and commercial office orders.
Severfield said its Indian joint venture JSSL has a record order book of £240 million.
The firm said a 50% fall in underlying profit before tax to £18.1m “reflects tougher market conditions.”
On dividends, Severfield said: “As a result of the ongoing challenging market conditions, the board has made the prudent decision to suspend the final dividend for the financial year ended 29 March 2025. …
“The board recognises the importance of the dividend to many shareholders and is committed to resuming dividend payments promptly, as soon as it is prudent to do so.”
Severfield announced in March that chief executive Alan Dunsmore “by mutual consent” agreed to step down after seven years as CEO and would leave Severfield with effect on June 30, 2025.
The company’s shares are down almost 60% for the past year, reducing its stock market value to about £100 million.
Severfield’s high-profile achievements in recent years have included its work on Wimbledon No.1 Court, Tottenham Hotspur FC Stadium, First Direct Arena, Outernet London and the Lord’s Cricket Ground Expansion.
Charlie Cornish, Severfield non-executive chairman, said: “After many years of strong profit growth, FY25 was a difficult year for the group.
“Whilst we performed well operationally, delivering a diverse range of projects for clients across many of our key market sectors, tough market conditions in the UK and Europe, combined with the ongoing bridge remedial works programme, contributed to weaker financial results.
“In response to these challenges, we have taken and continue to take appropriate cost reduction and cash conservation measures. Despite the current market backdrop, we have secured a strong baseload of work for FY26 and into FY27, and we continue to see some good projects coming to market. Supported by our stronger financial position and proven track record of delivery, we are well placed to benefit from the anticipated market recovery.
“Looking further ahead, 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 those which are driving the green energy transition.
“We welcome the UK Government’s commitments in the recent spending review and 10 Year Infrastructure Strategy to stimulating economic growth through maintaining, improving and expanding UK infrastructure and its commitment to invest in energy, transport and critical national infrastructure projects.
“Our positioning and prospects in these markets underpin the board’s confidence in the group’s ability to deliver attractive shareholder returns in the future and provides us with a strong platform to fulfil our strategic growth aspirations.”