Severfield PLC Trading Update (6722A)
28 March 2017 - 5:00PM
UK Regulatory
TIDMSFR
RNS Number : 6722A
Severfield PLC
28 March 2017
28 March 2017
Severfield plc
("the Company" or "the Group")
Trading Update
Severfield plc, the market leading structural steel group, today
announces an update on trading for the financial year ending 31
March 2017.
Current Trading
Trading during the second half of the financial year has been
strong, with the Group's performance for the year ending 31 March
2017 now expected to be ahead of expectations. Cashflow performance
in the second half has been similarly strong with net funds at the
year end also expected to be ahead of expectations.
UK
Performance on our UK contracts continues to reflect our ongoing
operational improvement programme which is delivering benefit to
our clients and to our own financial performance. The UK order book
remains solid at GBP267m and the pipeline of potential projects
remains steady although, as previously highlighted, we expect the
mix of commercial projects to be at more normal levels over the
coming months. Both order book and pipeline performance remain
consistent with our objective of doubling profits by 2020.
JSW Severfield Structures Ltd (India)
Operational performance remains solid and the long term debt
repayment programme continues on track. The order book is stable at
GBP40m, despite excluding a commercial project in Kerala,
originally awarded in December 2016, which was recently cancelled
following a change in prime contractor.
Outlook
With a good order book, continued strong operational performance
and our ability to work across a wide range of sectors, including
infrastructure, the UK business is well-placed to deliver further
growth towards our objective of doubling profits by 2020. The
Indian business continues to perform in a stable manner with the
economic backdrop continuing to show signs of improvement following
the government's demonetisation programme.
Full Year Results
Severfield will announce its financial results for the year
ending 31 March 2017 on 14 June 2017.
For further information, please contact:
Severfield plc John Dodds 01845 577896
Alan Dunsmore 01845 577896
Jefferies International 020 7029
Limited Simon Hardy 8000
020 7029
Harry Nicholas 8000
020 3772
Bell Pottinger Nick Lambert 2558
020 3772
Dan de Belder 2561
020 3772
Zara de Belder 2512
This information is provided by RNS
The company news service from the London Stock Exchange
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