Severfield predicts profits despite growth hit
STRUCTURAL steel company Severfield-Rowen expects to see annual profits increase to more than £40m despite a “softening” in some of its key markets which will affect growth this year.
The Thirsk-based group said it had also increased its order book to a record £440m, up from the £405m reported last month.
Severfield expects 2007 pre-tax profits for the year to December 31 to increase from £30.3m in 2006 to around £42m but chairman Peter Levine warned growth this year would be lower than previously expected.
It is set to start work on the long-awaited £300m Broadway shopping centre in Bradford, where it will erect the steel framework for the building once the groundwork has been completed.
Severfield has worked on major projects including the Millennium Bridge in Gateshead, Kingston Communications Stadium in Hull and Heathrow's Terminal 5.
In a trading update today, Mr Levine said: “As we begin 2008 the group is seeing a softening within some of its key markets, however the board remains confident that the high level of demand for Severfield-Rowen's unique, wide ranging services and capabilities, position the group well to deliver growth this year, but at a somewhat lower level than our previous expectations.”
Severfield will announce its full year results in April.
