Yorkshire steel firm lines up nearly £300m of post-pandemic orders despite operation disruptions

A structural steel group has reported that it has nearly £300m of orders lined up to help combat the effects of the current lockdown.

Severfield, based in Thirsk, has said that there has been some disruption to its operations due to pandemic measures, but that its order book is currently at £293m.

The company 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 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.

“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 froup remains good.

“Whilst 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 group remains good and year-end net funds (excluding IFRS 16 lease liabilities) were approximately £16m (31 March 2019: net funds of £25m).

“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.

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