Published on: April 21, 2020
Infrastructure to power Covid-19 rebound
Britain’s dominant structural steel manufacturer and contractor has indicated that trading in FY 2020E was in line with expectations, with no material impact from Covid-19. The group’s factories and majority of construction sites remain open, amid enhanced safety levels, but the outbreak will “inevitably” have an impact on profitability for FY 2021E, although it is not possible to quantify that. We have withdrawn our estimates for FY 2021E and 22E but believe the UK Government is prioritising the rapid reinstatement of infrastructure construction, evidenced by last week’s green light for HS2 construction.