Financial Report 2025 (2025 Annual Report)

CREATING BETTER WAYS TO BUILD, FOR A WORLD OF CHANGING DEMANDS

Severfield plc

Annual report and accounts for the year ended 29 March 2025

Welcome to our 2025 Annual Report

Severfield is the largest specialist structural steelwork group in the UK, with a growing presence in India and Europe and a reputation for performance and innovation.

Find us online @ https://www.severfield.com

"2025 marked a year of change in my first year at Severfield, but it's clear to me that Severfield is

built on strong foundations - with the right values, exceptional talent, and exciting growth potential we are well-positioned to win work in markets with positive long-term trends."

CHARLIE CORNISH NON-EXECUTIVE CHAIR AND DIRECTOR

"After many years of strong profit growth, FY25 was a difficult year - but we've secured a solid baseload for FY26 and into FY27, and fresh opportunities continue to emerge. With our financial position and proven delivery record,

we are well positioned to capitalise on the market's recovery."

ADAM SEMPLE

CHIEF FINANCIAL OFFICER

You can find out more about the Group on our website https://www.severfield.com, which includes an investor information section containing a wide range of information

of interest to institutional and private investors, including:

• Latest news and press releases

• Financial reports and investor presentations

• Company share price

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Page 96

Overview

Our year in review 2

View from the chair 4

Our purpose, strategy and values 6

Our culture 7

What we do 8

Where we do it 10

Our investment case 12

Our projects and order book 14

Strategic report

Our market sectors 18

The markets we serve

• UK and Europe 20

• India 22

  Engaging with our stakeholders 24

  How we create value 28

  Our strategy 30

• Drive growth 31

• Grow Indian presence 32

• Operational excellence 33

  Key performance indicators 34

  Our operational performance 36

  Our financial performance 44

  Building a responsible and

  sustainable business 46

• Our approach to materiality 47

• 2025 ESG company highlights 48

• Task Force on Climate-Related Financial Disclosures ('TCFD') 56

  Effective risk management 78

  Viability statement 88

  Section 172 statement 90

  Our governance

  Governance at a glance 96

  Board of directors 98

  Our executive committee 100

  Overview

  Our chair's view on governance 102

  Corporate governance report 104

  Audit committee report 108

  Nominations committee report 112

  Directors' report 114

  Directors' remuneration report 118

• Letter from the committee chair 118

• Remuneration policy 122

• Annual remuneration report 131

Statement of directors'

responsibilities 143

Financial statements - Group

Independent auditor's report 146

Consolidated income statement 157

Consolidated statement of

comprehensive income 158

Consolidated balance sheet 159

Consolidated statement of changes

in equity 160

Consolidated cash flow statement 161

Notes to the consolidated financial statements 162

Five-year summary 211

Financial calendar 211

Financial statements - Company

Company balance sheet 212

Company statement of changes

in equity 213

Notes to the Company financial

statements 214

Addresses and advisers 220

Strategic report Our governance Financial statements

www.severfield.com 01

Stock Code: SFR

Revenue (£m) Underlying1 profit before tax (£m)

Profit/(Loss) before tax (£m)

Underlying1 operating margin (%)

£491.8m

£24.3m

£27.1m

£32.5m

£36.5m

£18.1m

£21.1m

£21.0m

£27.1m

£23.0m

7.0%

6.7%

6.7%

8.1%

4.8%

£363.3m

£403.6m

£463.5m

£450.9m

£(17.5)m

21 22 23 24 25

21 22

23 24 25

21 22

23 24 25

21 22

23 24 25

Operating margin (%) Underlying1 basic earnings per share (p)

Basic earnings/(loss) per share (p)

Greenhouse gas intensity2 (tonnes CO2e/£m)

6.2%

5.7%

5.7%

8.9p

5.6p

5.1p

7.0p

5.2p

21.9

5.3%

(3.0)%

6.4p

7.2p

8.5p

4.3p

(4.7)p

19.9

13.2

13.5

13.5

21 22 23 24 25

21 22

23 24 25

21 22

23 24 25

21 22

23 24 25

02 Severfield plc Annual report and accounts

for the year ended 29 March 2025

Operational highlights

• Revenue of £450.9m (2024: £463.5m)

• Underlying1 profit before tax of

  £18.1m (2024: £36.5m) reflects tougher market conditions

• Loss before tax of £17.5m (2024: profit of £23.0m)

• Underlying1 basic earnings per share of 4.3p (2024: 8.9p)

• Basic loss per share of 4.7p (2024: earnings per share of 5.2p)

• Net debt (on a pre-IFRS-16 basis1) of £43.1m (2024: £9.4m), includes amortising term loans of £13.8m, year-end leverage (on a pre-IFRS-16 basis1) of 1.2x

• Non-underlying items of £35.6m include estimated bridge testing and remedial costs (net of insurance recoveries) of £23.4m - insurance settlement now agreed. See 'Our

  operational performance' on page 36 for further details

• Diversified UK and Europe order book of £444m at 1 July 2025

  (1 November 2024: £410m), of which

  £324m is for delivery over the next 12 months

• Continued strategic progress in India - record JSSL order book of £240m at 1 July 2025 (1 November 2024: £197m)

• Successful extension of £60m revolving credit facility to December 2027

  ESG

• The Group was awarded 'AAA' under MSCI's ESG rating for the fourth year running

• Achieved CDP 'A' score for leadership on climate change mitigation for second year running and 'A' for supply chain engagement

• Maintained our 'very good' BES 6001 responsible sourcing accreditation

• Progress against approved Science-Based Net Zero targets ('SBTi') achieved

• Maintained our carbon neutral accreditation from Achilles for Scope 1, 2 and operational Scope

  3 emissions for our manufacturing, office and construction operations

• Listed in Financial Times Europe's Climate Leaders report for the fifth year running

• Procured 100 per cent of our energy from renewable sources at all UK-owned facilities

• Maintained progress against social value against the National TOMs -Themes, Outcomes and Measures -methodology framework

• Maintained Gold membership of 'The 5% Club', demonstrating our commitment to 'earn and learn' schemes

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1 Except as otherwise stated '2024' and '2025' refers to the 53-week period ended 30 March 2024 and 52-week period ended 29 March 2025 respectively. The Group's accounts are made up to an appropriate weekend date around 31 March each year.

Underlying results are stated before non-underlying items of £35.6m (2024:

£13.5m). Non-underlying items have been separately identified by virtue of their magnitude or nature to enable

a full understanding of the Group's financial performance and to make year-on-year comparisons. They are excluded by management for planning, budgeting and reporting purposes and

for the internal assessment of operating performance across the Group and are normally excluded by investors, analysts and brokers when making investment and other decisions. See note 33 for APM definitions.

2 Scope 1 and 2 emissions, using market-based approach.

Overview

Strategic report Our governance Financial statements

www.severfield.com 03

Stock Code: SFR