In a trading update the company said that its performance and underlying financial position are satisfactory and the business remains on track for this financial year.
The UK order book of £171m remains solid, the board said, and the business continues to show improved stability following a reorganisation last year.
“Management's view of the market is unchanged, with continuing signs of improvement, but it remains likely to be later in the financial year before there is any notable impact on the size or mix of the order book,” the board said.
It added: “Overall, the group continues to be ideally positioned for recovery in the UK construction market with its good market position and strong balance sheet.”
Severfield has also benefited from the sale of its investment property in June for £3.9m, which was in line with book value.
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