Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from ShareProphets). I have no business relationship with any company whose stock is mentioned in this article.

Severfield – emphasises current year outlook “unchanged”, but why does the expectations detail dare not speak its name?…

By Steve Moore

24 April 2025 16:20

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Describing itself as a “market leading structural steel group”, Severfield (SFR) has issued a “Pre-close trading update” including that it expects its year ended 29th March 2025 “underlying profit before tax to be in the range of £18m-£20m, in line with our expectations… Net debt (pre-IFRS 16 basis) at 29 March was £44m, which is better than expectations… providing year-end facility headroom of c.£30m” and that its “expectations for FY26 are unchanged from those communicated at the time of the trading update on 3 March… with confidence that the group will deliver attractive shareholder returns in the future and our medium term growth targets remain unchanged”. However, how creditable such performance against expectations is, of course, depends on how demanding the expectations are, and talk of “shareholder returns in the future” and the “medium term” tends to mean the near-term outlook isn’t good.

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