Severfield Order Book Swells to £534M on Surging Data Center Demand

Severfield plc reported a significant increase in its order book, driven by strong demand for data center projects across its key markets. The structural steel specialist said its combined UK and Europe order book grew to £534 million as of July 1, providing enhanced revenue visibility for investors.

Order Book Details

In a trading update released at its annual general meeting, the company provided a detailed breakdown of its growing pipeline. The UK and Europe order book rose from £507 million on June 1, with projects in Europe and the Republic of Ireland now representing 32% of the total, up from 28% a month prior.

Key figures from the update include:

• Orders scheduled for delivery over the next 12 months increased to £375 million, up from £339 million on June 1.
• The Indian joint venture's order book expanded to £327 million, a substantial rise from a restated £267 million the previous month.

Strategic Wins and Market Outlook

Ad

The growth was fueled by several new contract wins, particularly for data centers in the UK, Germany, and Sweden. Severfield's Indian joint venture also capitalized on this trend, securing new data center contracts and additional orders from its partner, JSW, across multiple locations.

Management confirmed that trading since the start of the new financial year has been in line with its expectations. The company noted that momentum is building in its UK and European operations, while the Indian joint venture has also made a positive start with growth in both revenue and output.

Profitability and Guidance

Severfield maintained its fiscal 2027 guidance for a pretax profit between £12 million and £15 million. However, the company cautioned that first-half profitability will continue to reflect work on lower-margin contracts that are currently being completed.

Larger, higher-quality projects are scheduled to commence in the second half of the year. The profit from these more significant contracts is expected to be recognized in fiscal 2028. Severfield is scheduled to announce its first-half interim results for fiscal 2027 on November 24.