Severfield-Rowen reports most challenging months in its history
STRUCTURAL steel group Severfield-Rowen has said it has seen the “most challenging months” in the group’s history.
The business announced its end of year results in the 15 months to March 31 2013, reporting revenue for the period was £318.3m (2011: £267.8m). It said this represents relatively flat production volumes and continuing stability in steel prices from the prior period.
Underlying operating loss before results of associates was £19.2m (2011: £14.2m profit).
Executive chairman John Dodds said: “The 15 months ended March 31 2013 have probably been the most challenging in the group’s history.
“Problems with the contract for 122 Leadenhall Street were the most significant of several issues which adversely impacted the results for the period.
“We appreciated the overwhelming support of our shareholders during this period which enabled the Group to complete a Rights Issue which raised £44.8m net of fees. The resultant strong balance sheet provides the Group with greater operational and financial flexibility while demonstrating financial strength to customers, relative to its principal competitors, in a continuing difficult market environment.”
Tom Haughey stepped down as chief executive in January 2013 and Mr Dodds has assumed the role until a new chief executive is appointed.
Severfield-Rowen also announced today that Ian Cochrane has been appointed chief operating officer and will join the board as an executive director. He will be replacing Peter Emerson who, as previously announced in January, retires tomorrow.
Currently group operations director of Severfield-Rowen, Ian joined the company in 2007 following its acquisition of Fisher Engineering where where he was managing director.
Severfield-Rowen said it is now putting a very difficult period behind it and is implementing a number of changes aimed at improving operational and financial performance within a reduced Group risk profile.
It said: “The market is challenging but our position within the market and our customer relationships both remain strong.
“Despite the difficult backdrop, our strong balance sheet combined with new management and organisation structure leaves the group well placed to deliver improved performance in the near term.”
The North Yorkshire-based group said its UK order book of £197m (31 December 2012: £209m) and its current JSSL (India) order book value £29m (31 December 2012: £29m).
