Steel maker Severfield reported a wider annual loss and withheld its dividend after competitive pricing, delays to project awards and weaker activity across parts of its core markets weighed on profitability.

The structural steel group based out of North Yorkshire posted a net loss of £39.9m for the year ended 28 March, up from £17.5m a year earlier, while loss per share widened to £0.12 from £0.47. Underlying pre-tax profit fell 42% to £10.5m, in line with market expectations.

Revenue remained broadly stable at £454.3m, supported by a stronger second half despite difficult market conditions. Net debt stood at £28.2m, with leverage of 1.2x, while the company extended its banking facilities to June 2029 to maintain financial flexibility.

Severfield again proposed no final dividend, prioritising balance sheet strength and cash generation, although it said it intends to reinstate shareholder returns when conditions allow.

Its UK and European order book increased to £507m, while its Indian joint venture delivered record output and a record order book, with India expected to become a more significant contributor to future growth.

The company said its operational overhaul, including leadership changes, the continued exit from its Modular Solutions business, transformation programmes focused on efficiency and expansion in India through its Gujarat facility should boost future growth.

The board reiterated guidance for FY27 underlying pre-tax profit of £12m to £15m. The group also set out refreshed medium-term ambitions focused on profitability over volume growth, targeting revenue of £500m–£550m, operating margins of 7%–8%, underlying pre-tax profit of £40m–£50m and a sustainable dividend supported by stronger cash generation.

"FY26 was a challenging year for Severfield, with profitability impacted by competitive pricing, delays to project awards, and lower activity in parts of our core markets," said CEO Paul McNerney.

"We have taken decisive action to simplify the portfolio, strengthen operational discipline and focus the business on sectors and geographies where our engineering capability gives us a clear competitive advantage. While FY27 remains a transition year, our order book, growing Indian platform and transformation initiatives give us confidence in the group's medium-term potential," McNerney added.

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