Severfield-Rowen ‘creditable’ amid tough conditions
STRUCTURAL steel company Severfield-Rowen saw revenue and profit slip last year and expects 2010 to be a low point for demand.
But the company said it was pleased with its performance during 2009 when trading conditions were poor and it saw pricing pressure in all its markets.
Revenue slipped 11% to £349.4m in the year to December while underlying pre-tax profit was down 5% at £49.8m.
Severfield, based at Dalton near Thirsk, said it had achieved these figures despite a difficult construction climate. It has reduced its debts and has a “relatively strong” order book for 2010.
The company, which predicts slow growth in demand next year, worked on the London 2012 Olympic Stadium and construction work at York University during the year.
Chief executive Tom Haughey, said: “We remain vigilant and will maintain our focus on costs, capacity deployment and client satisfaction in our efforts to enhance our increased UK market share.”
He added: “2009 was a year of significant change and sacrifice for the whole company, but it is now well positioned for the challenging market conditions through 2010 in the UK, and is prepared and looks forward to growth through its joint venture in India.”
The company also announced that its long-serving finance director Peter Davison will be stepping down in June after 22 years with the company. He will be replaced by Alan Dunsmore.
Mr Davison said: “Having been with the group for 22 years I have seen it grow from a company in 1988 with revenue of only £11m to the industry’s market leader with revenue now of approximately £350m. It has certainly been an interesting journey.”
Severfield announced a final dividend of 15p, down from 20p last time.
