‘Highly creditable’ performance by Severfield-Rowen
SEVERFIELD-Rowen, the structural steel group, is in a position to extend its production capacity in India but has warned that UK market conditions remain “lacklustre”.
The group, which has its main operations in North Yorkshire, saw underlying group profit before tax reduce from £15.3m in 2010 to £10.1m last year.
For the year ended December 31, revenues remained steady at £267.8m. The group made an underlying operating profit of £11.7m compared to £16.2m in 2010.
Severfield-Rowen, which worked on projects in 2011 including the new Leeds Arena, Heathrow Airport and The Shard in London, is recommending a final dividend of 3.50p, giving 5p for the full year.
Chief executive Tom Haughey said: “The group is pleased to present a sound set of results, in-line with overall market expectations, underpinned by a strong UK performance, while operations in India continue to improve.
“The group has entered 2012 well placed to face the on-going challenges of a subdued domestic market with limited growth prospects.
“UK performance measured against our peers was again highly creditable, displaying the group’s financial, commercial and service strengths and its market leading position.
“The UK economy remains lacklustre and the duration of the downturn is having a significant impact upon the durability of our industry competitors, several of whom exited the sector in 2011.”
Severfield-Rowen said its post Olympic Games order book was £221m.
Mr Haughey said JSW Severfield Structures in India, the group’s joint venture in the country, lost 2.5m but that the operation had continued to increase its market presence.
The JV’s order book now stands at £43m, down from the £61m quoted last November because of a single contract cancellation which failed to conclude its project financing.
“The pipeline of potential orders continues to grow with some £80m of good opportunities being identified,” Mr Haughey added.
