Severfield said in a trading update released at its annual general meeting that its order books increased across its UK & Europe operations and its India joint venture as of July 1.
For the UK and Europe business, the order book rose to £534 million on July 1 from £507 million on June 1. The company noted that projects in mainland Europe and the Republic of Ireland now make up 32% of that order book, up from 28% a month earlier. Contracts scheduled for delivery within the next 12 months stood at £375 million on July 1, up from £339 million on June 1.
Severfield's Indian joint venture order book was reported at £327 million as of July 1, an increase from £267 million on June 1 when restated to reflect exchange rates at the reporting date.
The update highlighted a number of contract wins during the reporting period, led largely by projects for data centres located in the UK, Germany and Sweden. In India, the joint venture secured data centre contracts as well as new orders from its joint venture partner JSW across multiple locations.
On trading, the company said activity at the start of the year has been in line with management expectations, and that momentum is building in the UK and Europe. The Indian joint venture made a positive start to the year, with reported growth in both revenue and output.
Severfield confirmed its fiscal 2027 guidance, maintaining an expected pretax profit range of £12 million to £15 million. The company warned that first-half profitability will continue to be influenced by a mix that includes lower-margin work. It said that larger, higher-quality projects are anticipated to commence in the second half of the fiscal year, with profit from those projects expected to be recognized in fiscal 2028.
The company will publish its interim results for the first half of fiscal 2027 on November 24.
Order book snapshot (as reported)
- UK & Europe order book: £534 million as of July 1 (£507 million on June 1)
- Share of projects in mainland Europe and Republic of Ireland: 32% as of July 1 (28% on June 1)
- Orders due for delivery within 12 months: £375 million as of July 1 (£339 million on June 1)
- Indian joint venture order book: £327 million as of July 1 (£267 million on June 1, restated for exchange rates)
Outlook
The company kept its fiscal 2027 pretax profit guidance at £12 million to £15 million and said it expects the earnings profile to improve in the second half as higher-quality projects begin, with associated profit recognition moving into fiscal 2028.