21 April 2020 – trading update

The market leading structural steel group has issued a trading update for the financial year ended 31 March 2020, ahead of the release of results which is currently scheduled for 17 June.  The overall impact of Covid-19 remains uncertain and there has been some disruption to operations, both on sites and within factories, as a result of the outbreak.  The UK and Europe order book at 1 April 2020 stood at £293m (1 November 2019: £323m), providing a strong future workload during this unprecedented period of uncertainty, and the level of tendering and pipeline activity remains good.  Covid-19 will not have had a material impact on results for the year ended 31 March 2020.  Year-end net funds (excluding IFRS 16 lease liabilities) were approximately £16m (31 March 2019: net funds of £25m).  Net funds as at 31 March 2020 comprised cash of £44m offset by borrowings under a revolving credit facility of £15m and an outstanding term loan of £13m for the Harry Peers acquisition.  There is considerable uncertainty at the current time but we believe that a LONG TERM BUY rating is appropriate.