Severfield (LSE:SFR), the structural steel fabricator, reported underlying profit before tax of £10.5m for the full year ended 28 March, down from £18.1m a year earlier, as competitive pricing and project delays compressed margins across its UK and European operations.
Revenue held broadly flat at £454.3m, against £450.9m in the prior year, with a stronger second half helping to offset a difficult first half backdrop.
The underlying operating margin fell to 2.8% from 4.8%, reflecting lower-margin contracts secured during a period of constrained tendering activity that the company expects to roll off progressively through FY27.
The group's statutory result was an operating loss of £35.1m, against a loss of £13.7m in FY25, after £50.3m of non-underlying charges including a £22.2m non-cash goodwill impairment, £12.6m of costs tied to the exit from its Modular Solutions business and £8.3m of bridge remedial costs.
Net debt stood at £28.2m at year end, implying leverage of 1.2 times, and the company extended its banking facilities to June 2029.
No final dividend was declared, consistent with the prior year, as the board prioritises balance sheet strength.
The company published medium-term financial ambitions targeting revenue of £500m to £550m, an operating margin of 7% to 8% and underlying profit before tax of £40m to £50m.
The board expects FY27 underlying profit before tax to be in line with prior guidance of £12m to £15m, describing the year as a transition period before larger, higher-value projects begin contributing later in the year.
