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{"id":3803,"date":"2025-03-10T16:05:53","date_gmt":"2025-03-10T15:05:53","guid":{"rendered":"https:\/\/4youtrade.com\/novosti\/3798\/"},"modified":"2025-03-03T16:08:20","modified_gmt":"2025-03-03T15:08:20","slug":"3798","status":"publish","type":"novosti","link":"https:\/\/4youtrade.com\/en\/novosti\/3798\/","title":{"rendered":"Severfield warns of lower profit due to weak demand in the construction sector"},"content":{"rendered":"\n

Steel structures contractor Severfield has stated that a slowdown in activity and declining business confidence will lead to lower-than-expected profits this year.<\/p>\n\n\n\n

The warning was issued in this morning\u2019s trading update. The company reported that underlying pre-tax profit for the financial year ending in March will range from \u00a318 million to \u00a320 million, significantly lower than the \u00a336.5 million recorded last year.<\/p>\n\n\n\n

Severfield stated: “Market conditions have not improved since the publication of interim results last November. Competition remains fierce, prices are consistently low, and the implementation of new projects continues to be either canceled or postponed. This includes a major project, whose production was due to begin in January but has now been pushed back to early fiscal year 2026.”<\/em><\/p>\n\n\n\n

The company announced the cancellation of a \u00a310 million share buyback program and other cost-cutting measures. At the same time, it acknowledged: “We have been unable to secure sufficient work in the short term to fully offset unabsorbed factory overheads in the fourth quarter.”<\/em><\/p>\n\n\n\n

Severfield also explained that a contract revision related to a long-term nuclear project, initially tendered in 2019, also impacted the decline in underlying profit. Details will be disclosed during the annual financial results publication in June.<\/p>\n\n\n\n

The company further warned that underlying pre-tax profit in the 2026 financial year will be even lower than the revised projections for 2025.<\/p>\n","protected":false},"featured_media":3800,"template":"","class_list":["post-3803","novosti","type-novosti","status-publish","has-post-thumbnail","hentry"],"acf":[],"yoast_head":"\nSeverfield warns of lower profit due to weak demand in the construction sector - 4|Y|O|U Trade & Service<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/4youtrade.com\/?post_type=novosti&p=3798\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Severfield warns of lower profit due to weak demand in the construction sector - 4|Y|O|U Trade & Service\" \/>\n<meta property=\"og:description\" content=\"Steel structures contractor Severfield has stated that a slowdown in activity and declining business confidence will lead to lower-than-expected profits this year. 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