StockMarketWire.com - Structural steel specialist Severfield said its UK order book had fallen in value since June, though its Indian order book had grown.

The UK order book at 1 September was £210m, compared to £237m on 1 June, but remained in line with normal order book levels, the company said.

'The order book reflects a higher proportion of smaller projects, particularly in the industrial and distribution sector, which typically have shorter lead times,' it added.

'Our pipeline of potential future orders has remained stable with a good balance of work across all key market sectors.'

In India, the order book at 1 September was worth 128m, up from £106m at 1 June.

The company said the strong Indian performance had prompted it to agree to a factory capacity expansion with its joint venture partner there.

The expansion would be financed by a combination of equity of around £8m, provided in equal cash amounts of £4m by the group and partner JSW, and debt of around £8m, provided directly by Indian lenders.

'The group's trading performance and financial position remains in line with management expectations and the outlook for the year ending 31 March 2019 remains unchanged,' Severfield said.

'Following the higher profit from certain project completions in first half of the prior year, we expect the profits in the first and second half of the current year to be more equally weighted.'

At 8:08am: [LON:SFR] Severfield share price was +0.5p at 76.5p



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