More than 100 jobs could be shed by Severfield amid a decline in business confidence.
聽In a trading update today, Severfield said that projects were 鈥渘ot being awarded or progressing within normal timescales鈥�.
Following a review of staffing levels, the board has decided to reduce the headcount by 6% through a combination of redundancies and leaving vacancies empty. Severfield has approximately 1,800 employees, so 6% implies more than 100 positions to go.
Severfield said that the UK and Europe order book remained solid, at 拢440m as of 1st April (1st February: 拢403m), of which 拢327m 聽is for delivery over the next 12 months.
The board said that, when the 2024 results are published in due course, they will show underlying profit before tax to be in the range of 拢18m to 拢20m.
Severfield admitted last year that it was having to repair the welds on 14 bridges that it had made for HS2 and National Highways.
鈥淭he bridge remedial works programme is progressing as expected,鈥� Severfield said today, 鈥渁nd, whilst the balance of cost and associated recoveries continues to evolve over time, our overall view of testing and remedial costs net of insurance proceeds is broadly unchanged, at an estimated non-underlying net cost of c.拢20m.
鈥淭he group has incurred testing and remedial cash costs of c.拢18m in FY25 and the remaining cash costs are expected to be incurred in FY26 and FY27. Discussions with the group's professional indemnity (PI) insurers have made good progress and they have now confirmed coverage. The insurers have also indicated that they will make an interim payment by mid-June, following the completion of a quantum verification exercise with their loss adjusters.鈥�
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