Severfield, the Thirsk, North Yorkshire-based international steel group, said its revenue fell 18% to £206 million and underlying profit before tax collapsed 96% to £600,000 in the six-month period ended September 27, 2025.
Severfield said that in the near term “reduced industry demand” is contributing to significant pricing pressure.
” … the board is prioritising the preservation of financial flexibility until market conditions improve and, as a result, is not declaring an interim dividend.”
In its outlook, Severfield said it has good visibility over H2 revenues through orders already secured in its £429 million order book.
The firm added: “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.”
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.
The North Yorkshire company has seven sites, 1,800 employees and an established presence in the expanding Indian market through its joint venture partnership with JSW Steel, India’s largest steel producer.
Severfield’s new CEO Paul McNerney said: “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.”