Steel group looks to India for growth
STRUCTURAL steel group Severfield-Rowen said today that India is remaining focus of its growth ambitions as it reported that half year figures were down in a tough climate.
The company, owner of Bolton firm Watson Steel Structures, reported underlying pre-tax profits of £3.4m in in the six months to June, down from £8.2m in the corresponding period last year.
Among the projects Severfield-Rowen worked on in the first half of this year were London’s iconic Shard of Glass development and closer to home Manchester Metropolitan University, Greater Manchester Police Headquarters, Ineos Runcorn and a retail store in Manchester for The Co-operative Group.
Underlying group operating profit before results of associates was £5.7m, falling from £8.6m while net borrowings at period end were £22.8m.
It said its UK order book at August 19 was £249m, reflecting growth in UK market share. The order book in India is up at £41m from £36m in May.
Chief executive Tom Haughey said: “The company is pleased with its performance in the UK against the backdrop of a prolonged and unprecedented period of weak demand.
“The company has grown its order book to £249m (May 2011: £221m) and maintained its position as market leader, winning key contracts in strategic sectors where activity levels still offer opportunity.
“The financial performance of our UK operations in terms of revenues and margins is consistent with our expectations, with strong performances in all group companies and functions to deliver client value and satisfaction.
“India remains the focus of the company’s growth ambitions, with opportunity being translated into reality via the scale and content of JSW Severfield Structures’ order book and the progress being made in achieving operational and commercial objectives.”
