Revenue at the steelwork contractor tumbled 18% to £206m as demand across commercial, industrial and data-centre work stayed muted and margins remained under pressure.
Underlying pre-tax profit slumped from £16m in the same period a year ago to just £0.6m as factory overheads went under-recovered.
Despite the setback, Severfield halved net debt since year-end to £21.7m, helped by £20m of insurance receipts linked to its highways and HS2 bridge welding problems revealed last year.
Management cancelled this year’s interim dividend to conserve cash ahead of £10m of further bridge-fix payments landing in the second half.
Severfield also made further provision for other bridge-related costs of £3.3m comprising third-party consequential costs and claims received since it full-year results back in July.
New chief executive Paul McNerney said he had begun a full review of the group’s operating model and would reset strategy for 2026.
He said: “I am focused on redefining our strategy, strengthening our manufacturing and delivery capabilities, driving greater efficiency, and on bringing an absolute focus on engineering excellence for our customers.”
The UK and Europe order book held steady at £429m, with £324m deliverable within the next 12 months.
He said that tendering volumes had begun to pick up again, with battery plants, data centres and green-energy schemes offering medium-term momentum.
India remained the bright spot, with Severfield’s joint venture JSSL delivering a strong turnaround and a record £286m order book on the back of rising steel demand and new plant expansion in Gujarat.
The group said full-year expectations remain unchanged, supported by secured second half work and improving tender volumes in key markets.
