Severfield to increase factory capacity in India

Severfield has published a trading update in the City. Photo: Ian West/PA Wire
Severfield has published a trading update in the City. Photo: Ian West/PA Wire
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SEVERFIELD today revealed that its trading performance and financial position remains in line with management expectations

In a statement, released ahead of its AGM, Severfield said the outlook for the year ending March 31 2019 remains unchanged.

The statement added: “Following the higher profit from certain project completions in first half of the prior year, we expect the profits in the first and second half of the current year to be more equally weighted.”

The UK order book of £210m as of September 1 remains in line with normal order book levels, which typically equate to eight to ten months of annualised revenue, Severfield said.

The statement added: “The Indian order book has increased again to £128m at 1 September. With this record order book, and a growing level of new opportunities, which includes a number of interesting higher margin commercial projects, the Indian business is well positioned to take advantage of a market for structural steel in India which continues to improve.

“As a result of these continued market improvements we have agreed with our joint venture partner, JSW, to increase factory capacity at the Bellary facility.”

The group will announce its financial results for the half year ending September 30 2018 on Tuesday November 27 2018.