Creating better ways to build, for a world of changing demands
Creating a better way to build, for a world of changing demands
Financial highlights
Revenue (£m)
£450.9m
Underlying1 profit before tax (£m)
£18.1m
Underlying1 profit before tax (£m)
£(17.5)m
Underlying operating margin (%)
4.8%
Operating margin (%)
(3.0)%
Underlying1 basic earnings per share (p)
4.3p
Basic earnings/(loss) per share (p)
(4.7)p
Greenhouse gas intensity2 (tonnes CO2e/£m)1
13.5 tonnes
Revenue (£m)
£450.9m
Underlying1 profit before tax (£m)
£18.1m
Profit/(loss) before tax (£m)
£(17.5)m
Underlying operating margin (%)
4.8%
Operating margin (%)
(3.0)%
Underlying1 basic earnings per share (p)
4.3p
Basic earnings/(loss) per share (p)
(4.7)p
Greenhouse gas intensity2 (tonnes CO2e/£m)1
13.5 tonnes
Operational highlights
[Summary statement of the years performance] Sed ut perspiciatis unde omnis iste natus error sit voluptatem accusantium doloremque laudant vitae dicta sunt explicabo.
- Revenue of £450.9m (2024: £463.5m)
- Underlying1 profit before tax of £18.1m (2024: £36.5m) reflects tougher market conditions
- Loss before tax of £17.5m (2024: profit of £23.0m)
- Underlying1 basic earnings per share of 4.3p (2024: 8.9p)
- Basic loss per share of 4.7p (2024: earnings per share of 5.2p)
- Net debt (on a pre-IFRS-16 basis1) of £43.1m (2024: £9.4m), includes amortising term loans of £13.8m, year-end leverage (on a pre-IFRS-16 basis1) of 1.2x
- Non-underlying items of £35.6m include estimated bridge testing and remedial costs (net of insurance recoveries) of £23.4m – insurance settlement now agreed. See 'Our operational performance' on page 36 for further details
- Diversified UK and Europe order book of £444m at 1 July 2025 (1 November 2024: £410m), of which £324m is for delivery over the next 12 months
- Continued strategic progress in India – record JSSL order book of £240m at 1 July 2025 (1 November 2024: £197m)
- Successful extension of £60m revolving credit facility to December 2027
- Revenue of £450.9m (2024: £463.5m)
- Underlying1 profit before tax of £18.1m (2024: £36.5m) reflects tougher market conditions
- Loss before tax of £17.5m (2024: profit of £23.0m)
- Underlying1 basic earnings per share of 4.3p (2024: 8.9p)
- Basic loss per share of 4.7p (2024: earnings per share of 5.2p)
- Net debt (on a pre-IFRS-16 basis1) of £43.1m (2024: £9.4m), includes amortising term loans of £13.8m, year-end leverage (on a pre-IFRS-16 basis1) of 1.2x
- Non-underlying items of £35.6m include estimated bridge testing and remedial costs (net of insurance recoveries) of £23.4m – insurance settlement now agreed. See 'Our operational performance' on page 36 for further details
- Diversified UK and Europe order book of £444m at 1 July 2025 (1 November 2024: £410m), of which £324m is for delivery over the next 12 months
- Continued strategic progress in India – record JSSL order book of £240m at 1 July 2025 (1 November 2024: £197m)
- Successful extension of £60m revolving credit facility to December 2027
ESG Highlights
- The Group was awarded ‘AAA’ under MSCI’s ESG rating for the fourth year running
- Achieved CDP ‘A’ score for leadership on climate change mitigation for second year running and ‘A’ for supply chain engagement
- Maintained our ‘very good’ BES 6001 responsible sourcing accreditation
- Progress against approved Science-Based Net Zero targets (‘SBTi’) achieved
- Maintained our carbon neutral accreditation from Achilles for Scope 1, 2 and operational Scope 3 emissions for our manufacturing, office and construction operations
- Listed in Financial Times Europe’s Climate Leaders report for the fifth year running
- Procured 100 per cent of our energy from renewable sources at all UK owned facilities
- Maintained progress against social value against the National TOMs – Themes, Outcomes and Measures – methodology framework
- Maintained Gold membership of ‘The 5% Club’, demonstrating our commitment to ‘earn and learn’ schemes
ESG Highlights
- The Group was awarded ‘AAA’ under MSCI’s ESG rating for the fourth year running
- Achieved CDP ‘A’ score for leadership on climate change mitigation for second year running and ‘A’ for supply chain engagement
- Maintained our ‘very good’ BES 6001 responsible sourcing accreditation
- Progress against approved Science-Based Net Zero targets (‘SBTi’) achieved
- Maintained our carbon neutral accreditation from Achilles for Scope 1, 2 and operational Scope 3 emissions for our manufacturing, office and construction operations
- Listed in Financial Times Europe’s Climate Leaders report for the fifth year running
- Procured 100 per cent of our energy from renewable sources at all UK owned facilities
- Maintained progress against social value against the National TOMs – Themes, Outcomes and Measures – methodology framework
- Maintained Gold membership of ‘The 5% Club’, demonstrating our commitment to ‘earn and learn’ schemes
Our purpose, strategy and values
Our approach
Our purpose, strategy, and values are the pillars upon which sustainable success is built, they shape our identity and guide our actions.
Our Group Strategy
Our Group Strategy is comprised of 3 core pillars which help us to actualise our ambitions and measure progress effectively.
Drive growth
- Expand UK market share
- Enter new UK market sectors
- Accelerate growth in Europe
Grow Indian presence
- Drive profitable growth through market expansion
- Enhance operational capacity and efficiency
- Position for long term growth
Operational efficiency
- Enhance operational delivery
- Quality and efficiency
- Investment in technology
Drive growth
- Expand UK market share
- Enter new UK market sectors
- Accelerate growth in Europe
Grow Indian presence
- Drive profitable growth through market expansion
- Enhance operational capacity and efficiency
- Position for long term growth
Operational efficiency
- Enhance operational delivery
- Quality and efficiency
- Investment in technology
What we do
We provide value throughout the entire project lifecycle...
...addressing societies’ infrastructure needs
Battery plants
In the UK and EU, we are seeing a new wave of opportunities for battery giga-factories to support domestic zero carbon vehicle production, with a number of facilities currently being planned or considered. Recognising the importance of these facilities, governments in the UK and Europe are allocating funding to deliver globally competitive local battery supply chains. Severfield has a strong position in the sector and is currently working on the Agratas battery plant in Somerset having just completed the Envision battery plant in Sunderland.
Renewable energy
Decarbonising the power sector, whilst meeting a significant increase in electricity demand, has the potential to generate significant investment from both the private and public sectors. The UK currently has the largest operational offshore wind farm in Europe, with similar sized projects planned or underway. This presents opportunities for the Group including manufacturing facilities for renewables, offshore wind projects (such as Hornsea 3), onshore substations for wind connecting offshore energy to the grid and modular housings for offshore applications.
New nuclear
The UK Government has launched ‘Great British Nuclear’, to facilitate the design, construction, commissioning and operation of nuclear energy generation projects to address constraints in the nuclear market. The new Civil Nuclear Roadmap, published in January 2024, describes how the UK could meet its existing target to generate up to 24GW of nuclear power by 2050, 4 times the current capacity. Similar projects are also being planned in Europe. The Group has extensive experience in this sector and is a key delivery partner for existing nuclear projects at Sellafield.
Low carbon transport
Significant UK Government investment is planned in public transport, including HS2, Northern Powerhouse rail links, TransPennine upgrades, rail electrification projects, West Yorkshire mass transit system, and in improving roads, buses and railways in the north of England, all of which could also introduce new opportunities for the Group. Severfield is well placed in the infrastructure sector to support the delivery of such projects and our bridge team has a strong reputation and extensive experience in all types of bridgework, including major transport routes.
Low carbon buildings
Decarbonisation legislation and Net Zero targets are driving demand for low carbon buildings, including modifications to existing buildings or new build projects. The Group has a strong track record in the commercial office sector, regionally and in London, as well as experience in ‘cut and carve’ (retrofit) design and construction, leaving us well placed to win work from these opportunities.
Data centres
Demand for data centres in the UK and EU is also expected to continue, fueled by cloud computing, 5G and the recent advancement of Artificial Intelligence (‘AI’), including Agentic AI, applications which are driving even greater dependence on data centre infrastructure. The Group has a notable track record in this sector, having already delivered projects in the UK, Ireland, Belgium, Finland, Sweden, the Netherlands and Germany for a variety of different end clients.
Transmission
In the UK, the National Grid’s connection reform initiative is accelerating connections to the grid and similar projects are underway in the EU. The Group is well placed to meet this demand which includes a significant increase in the volume of power transmission and distribution projects being brought to market, with an acceleration of work to strengthen and stabilise power networks to meet future energy demands.
Our investment case
Our well-established strategy is creating sustainable growth to create long-term value for all stakeholders.
01
Exciting growth prospects
- Our business covers ten core sectors, which serve a diversified range of markets, including those with strong growth potential in the UK and Europe.
- We have manufacturing operations in the UK and in mainland Europe. Following the integration of our recent European acquisition, we are focused on strengthening our market position in Europe, giving us access to new high-growth sectors.
- We continue to look for new opportunities and take advantage of our existing capacity and expertise, and we are well positioned to win work in markets with positive long-term growth trends, including those which are driving the green energy transition.
- Significant opportunity to build value in India, capitalising on the country’s strong economic growth and conversion from concrete to steel as the primary building material.
02
Resilient business through economic cycles
- We have significant sector, geographical and client diversity, limiting the impact of downturns in macroeconomic cycles.
- Our business is a key provider of core infrastructure, such as transport, energy, defence, health and education – all areas that require continual investment in a prosperous economy.
- We have a strong competitive advantage and remain well positioned to win work in markets with excellent longer-term growth opportunities
- We have recently secured a number of significant new projects, further strengthening our diversified UK and European order book. This provides us with a good volume of future work alongside visibility of a good pipeline of opportunities in the UK and Europe in our chosen market sectors.
03
Built on a platform of operational excellence
- We have an ongoing programme to drive operational improvements and efficiencies across the Group. This allows us to deliver high-quality projects for our customers, whilst optimising costs.
- Project Horizon, our digital transformation programme, is a long-term initiative to support our strategy through developing and enhancing our systems and processes and keeping us at the forefront of technology and innovation as the market leader in the industry.
- We have recently launched three new transformation programmes focused on business development, project delivery and manufacturing operations, with the objective of improving operational efficiency and order conversion rates.
- We have invested over £60m in capital expenditure in the last ten years, keeping our manufacturing facilities at the cutting edge.
04
Delivering strong returns, cash generation, and progressive dividends
- ROCE is an important metric for us and our five-year average underlying1 ROCE is c.14 per cent.
- Our operations expect to generate strong cash flows, and we target the conversion of more than 85 per cent of our annual profit into cash.
- The Group has a wellestablished capital allocation policy to support and grow the Group to increase value for shareholders, whilst having a progressive dividend policy to pay sustainable core dividends in line with profit. (As a result of the ongoing challenging market conditions, the board has made the prudent decision to suspend the final dividend for the financial year ended 29 March 2025. This measure is in line with our commitment to maintaining a strong balance sheet and ensuring the Group's long term financial stability.)
05
All underpinned by a strong focus on sustainability
- Our sustainability framework guides responsible, long-term business growth and has earned industry recognition through various awards.
- We are focused on decarbonising our own operations and actively supporting customers and suppliers in meeting their climate goals.
- We have a clear roadmap to reach Net Zero emissions by 2040.
- We have achieved progress against our science-based targets, that have been formally approved by the Science Based Targets initiative (SBTi), aligning us with global climate benchmarks, and we are making good progress against them.
01
Exciting growth prospects
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02
Resilient business through economic cycles
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03
Built on a platform of operational excellence
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01
Exciting growth prospects
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- Eationsedi dollaborum res et eatquia spedis ullatur buscia deliq quaeptatas
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02
Resilient business through economic cycles
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- Eationsedi dollaborum res et eatquia spedis ullatur buscia deliq quaeptatas
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03
Built on a platform of operational excellence
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04
Delivering strong returns, cash generation, and progressive dividends
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05
All underpinned by a strong focus on sustainability
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Building a responsible and sustainable business
Our Group’s purpose is to create better ways to build, for a world of changing demands.
To achieve this, we are committed to motivating and enabling our people and our supply chain to deliver high-quality, innovative buildings in a sustainable and efficient way.
During the year, we have continued to progress our sustainability strategy. As part of continuous improvements, we’ve undertaken an in-depth analysis of our ESG approach to ensure that the frameworks, reporting mechanisms and targets remains relevant to the four foundational sustainability pillars we’ve established. In line with the Global Reporting Initiative (‘GRI’) Standards, our sustainability framework and reporting are structured around our most material sustainability issues.
Our focus on ‘Planet’, ‘People’, ‘Prosperity’, and ‘Principles of Governance’, shaped by the input of our employees, customers, suppliers, and stakeholders,has driven meaningful progress and achievements in recent years. Progressing against our targets is fundamental to achieving our long-term strategic objective to support the delivery of sustainable growth while aligning with the relevant United Nations Sustainable Development Goals (UN SDGs).In this years report we have simplified our disclosures to better communicate our sustainability strategy and achievements and we have reported against our targets on pages [x] and [x].
In the coming years, we will be further focusing our efforts around two pillars, mainly ‘Planet’ and ‘People’ to ensure we can help drive material and implementable change.
Our Group’s purpose is to create better ways to build, for a world of changing demands.
To achieve this, we are committed to motivating and enabling our people and our supply chain to deliver high-quality, innovative buildings in a sustainable and efficient way.
During the year, we have continued to progress our sustainability strategy. As part of continuous improvements, we’ve undertaken an in-depth analysis of our ESG approach to ensure that the frameworks, reporting mechanisms and targets remains relevant to the four foundational sustainability pillars we’ve established. In line with the Global Reporting Initiative (‘GRI’) Standards, our sustainability framework and reporting are structured around our most material sustainability issues.
Our focus on ‘Planet’, ‘People’, ‘Prosperity’, and ‘Principles of Governance’, shaped by the input of our employees, customers, suppliers, and stakeholders,has driven meaningful progress and achievements in recent years. Progressing against our targets is fundamental to achieving our long-term strategic objective to support the delivery of sustainable growth while aligning with the relevant United Nations Sustainable Development Goals (UN SDGs).In this years report we have simplified our disclosures to better communicate our sustainability strategy and achievements and we have reported against our targets on pages [x] and [x].
In the coming years, we will be further focusing our efforts around two pillars, mainly ‘Planet’ and ‘People’ to ensure we can help drive material and implementable change.
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© 2025 Severfield plc
Severfield plc Severs House Dalton Airfield Industrial Estate Dalton Thirsk YO7 3JN
© 2025 Severfield plc
Severfield plc Severs House Dalton Airfield Industrial Estate Dalton Thirsk YO7 3JN