Based on last year’s published figures, this will translate to more than 100 job losses.
In a year-end trading update released this morning, the specialist contractor stated:
“We are continuing to implement the necessary cost-saving measures to address the ongoing trading challenges the group is experiencing. Reports Contract Journal
“As part of this, we have recently concluded a comprehensive headcount review, which will see a 6% reduction in overall group staffing. This will be achieved through a mix of redundancies and a decision not to fill certain approved vacancies.”
Severfield outlined that the wider cost-cutting strategy will also involve stricter control over working capital, accelerating outstanding tax refunds from HMRC, scaling back planned capital expenditure following significant investments in previous years, and continuing to drive efficiencies across the business.
“Although we still see a healthy pipeline of project opportunities, market conditions across the UK and Europe remain difficult,” the statement continued. “Pricing has stayed tighter for longer than anticipated in a highly competitive environment, and we are seeing delays in project awards and progress, all reflective of the broader decline in business confidence within the UK economy.”
Severfield confirmed that its bridge remedial works programme remains on track, with the final cost still expected to total around £20m after insurance recoveries.
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