Interim Management Statement

RNS Number : 7841G

Severfield-Rowen PLC

18 May 2011

 



Interim Management Statement

Severfield-Rowen Plc, the market leading structural steel group, issues this Interim Management Statement covering the period from 1 January 2011 to 18 May 2011.

Current Trading

The Company's present view of the UK market is unchanged, in that demand remains at relatively low levels with little prospect of improvement in 2011.  Prices are tight but have improved marginally compared to 2009.

A healthy workload is in place in all four of the Company's UK operating plants through until September, and in some cases beyond, derived from a virtually unchanged order book of £221m (£226m as at 22 March 2011).

The Company's trading performance and financial position for the year to date remain in line with management expectations.  The Company's debt levels also remain in line with expectations.

Prospects for the remainder of this year and into 2012 are being seen in a number of sectors, but most notably in Industrial, Transportation, Waste to Energy and Commercial Office.

Notwithstanding these opportunities, the prevailing forecasts for the UK economy and construction sector, lend support to the Company's view that a broad recovery remains distant.  The Company's focus remains on the sectors where activity and opportunity are being sustained.

JSW Severfield Structures Ltd

The service and value offering of JSSL in India is being increasingly recognised in the market, where demand is robust across all sectors.

Some of the initial projects won by JSSL have been subject to main contract programme slippage, resulting in below plan production output and income generation in the year to date, however, a very strong order book of £36m (£33m as at 22 March 2011), including some large individual orders, provides confidence that production volumes and revenues will be on, or ahead of, schedule during the second half of 2011.  As a result, the Company intends to increase output in the production plant by adopting a three shift working pattern from the summer.  JSSL work mix will predominantly be Industrial and Power related during the next 12 months, with a smaller, but growing proportion of Multi-storey Commercial and Residential buildings.

Company Secretary

Peter Davison stepped down from his role as Company Secretary at the end of April 2011.  Jonathan Rhodes, Group Financial Controller for the Company, will assume Peter's responsibilities in addition to continuing his own.

Annual General Meeting

The Company will be holding its Annual General Meeting at 12 noon on Wednesday 8 June 2011 at Solberge Hall Hotel, Newby Wiske, Northallerton, North Yorkshire, DL7 9ER.

Outlook

Severfield-Rowen is maintaining its strong domestic market position and will continue its efforts to optimise UK performance in a very tough market.

The Company's experience and abilities are now being successfully focussed into international markets where opportunity remains strong.

For further information, please contact:

Severfield-Rowen Plc                           Toby Hayward                      01845 577896

                                                         Chairman

                                                         Tom Haughey                       01845 577896

                                                         Chief Executive Officer

                                                         Alan Dunsmore                    01845 577896

                                                         Finance Director

RBS Hoare Govett Ltd                         John MacGowan                   020 7678 8000

                                                         Stephen Bowler                    020 7678 8000

Pelham Bell Pottinger                         Archie Berens                      020 7861 3112

                                                         Zoe Sanders                        020 7861 3887

 

END

 

 

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