Structural steel supplier Severfield (LON: SFR) has published a downbeat trading statement and the share price has slumped 45.7% to 25.9p. The order book has fallen by 2% since the end of October and the decline is more marked over the medium-term.
This is where the operational gearing of Severfield is a major negative. It does not take a large percentage dip in the expected revenues to slash the forecast profit.
The UK structural steel market is estimated to have declined by 7% in 2024 and contract awards have fallen in some sectors so far this year. There is also competition from Euro...
