Severfield - Strategically well placed to grow
Broader exposure to more defensive sectors, European projects and Indian development has stood Severfield in good stead to attain its FY20 PBT target. The UK general election result may also see some return of confidence in the weaker sentiment sectors. The company is positioned for the next phase in its strategic development, although continues to be perceived as a cyclical UK construction company in our view.Severfield is a structural steelwork company, engaged in construction contracts business. Co. serves the construction and infrastructure markets, which cover a range of clients from contractors and developers, to engineers and architects. Co.'s construction sectors consist of commercial offices, Industrial and distribution, stadia and leisure, retail, and data centers and other. Co.'s infrastructure sectors consist of transport, power and energy, and health and education. Co. manages the fabrication and construction process, from initial scheme design, through detailing, specification and manufacture to the eventual handover to clients.
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