Severfield has 'strong future workload' to help it cope with coronavirus uncertainty

Severfield has published a trading update for the financial year ended 31 March 2020.

The statement said: "In managing the group’s response to the COVID-19 pandemic, the primary focus is on the health, safety and wellbeing of all employees, clients and the wider public, together with protecting the financial strength of the Group.

"In line with the current guidance on COVID-19 from the UK government (and the latest Standard Operating Procedures (‘SOPs’) issued by the Construction Leadership Council), the group’s factories and sites are remaining operational where it is safe and practical to do so and with strict precautions in place including enhanced levels of cleaning, additional hygiene facilities and social distancing.

"All employees who can work from home are now doing so and have the technology and capability to service clients remotely. For construction sites in the Republic of Ireland and in continental Europe, the group is following local government guidance."

The statement added: "The overall impact of COVID-19 remains uncertain and the group is experiencing some disruption to its operations, both on its sites and within its factories, as a result of the outbreak.

"Notwithstanding this, the UK and Europe order book at 1 April 2020 stands at £293m (1 November 2019: £323m), providing the group with a strong future workload during this unprecedented period of uncertainty. The level of tendering and pipeline activity for the group remains good."

Commenting on current trading and outlook, the company said: "While the group has started to see the initial impacts of COVID-19, these are not expected to have a material impact on the results for the year ended 31 March 2020 (FY20).

"The financial position of the gtroup remains good and year-end net funds (excluding IFRS 16 lease liabilities) were approximately £16m (31 March 2019: net funds of £25m). Net funds at 31 March 2020 comprised cash of £44m offset by borrowings under the group’s revolving credit facility (‘RCF’) of £15m and the outstanding term loan of £13m for the Harry Peers acquisition.

"For the year ending 31 March 2021, it is anticipated that the extent of the overall disruption from COVID-19 will inevitably have an impact on group profitability. Whilst the majority of the Group’s construction sites remain open and its factories remain operational, given the ongoing market uncertainty, it is not possible to accurately predict either the duration of the disruption or its impact on the FY21 outturn. We will continue to monitor external events, manage the situation closely and update the market as appropriate."

Severfield is the UK’s market leader in the design, fabrication and construction of structural steel, with a total capacity of around 150,000 tonnes of steel per annum. The group has five sites, and employs around.1,400 staff.

Editor’s note: first and foremost - and rarely have I written down these words with more sincerity - I hope this finds you well.

Almost certainly you are here because you value the quality and the integrity of the journalism produced by The Yorkshire Post’s journalists - almost all of which live alongside you in Yorkshire, spending the wages they earn with Yorkshire businesses - who last year took this title to the industry watchdog’s Most Trusted Newspaper in Britain accolade.

And that is why I must make an urgent request of you: as advertising revenue declines, your support becomes evermore crucial to the maintenance of the journalistic standards expected of The Yorkshire Post. If you can, safely, please buy a paper or take up a subscription. We want to continue to make you proud of Yorkshire’s National Newspaper but we are going to need your help.

Postal subscription copies can be ordered by calling 0330 4030066 or by emailing [email protected]. Vouchers, to be exchanged at retail sales outlets - our newsagents need you, too - can be subscribed to by contacting subscriptions on 0330 1235950 or by visiting www.localsubsplus.co.uk where you should select The Yorkshire Post from the list of titles available.

If you want to help right now, download our tablet app from the App / Play Stores. Every contribution you make helps to provide this county with the best regional journalism in the country.

Sincerely. Thank you.

James Mitchinson

Editor