AGM Statement

RNS Number : 2466T
Severfield-Rowen PLC
03 June 2009
 



3 June 2009


AGM Statement 2009



At the Group's AGM today, Tom Haughey, Chief Executive Officer, will make the following statement:


'Trading in the first five months of 2009 has continued at the strong levels achieved in 2008.   Consequently, current indications suggest that the underlying profit before tax for the current year will be ahead of management's expectations. Whilst this position is most welcome in the current economic environment it should be tempered by the fact that prospects for the UK continue to fade to levels below those forecast by the industry in recent months.  


We continue to have a relatively strong order book, currently valued at £267 million, which will be increasingly sustained by export sales supplied from our UK facilities, albeit at lower margins which are also subject to exchange rate fluctuations.   We are now experiencing a significant decline in demand in the Company's key UK construction sectors and as a result we will implement further cost reductions and reconfigure capacity.


We have good visibility for the current year and remain confident of a strong financial performance for the rest of 2009, but are cautious in our outlook for 2010. Over the longer term and as the UK market recovers, as it will undoubtedly do, the Group will benefit from its low cost base, a robust balance sheet and other inherent advantages, combined with strong prospects in 2011 for its Joint Venture in India.'



For further information, please contact:


Severfield-Rowen Plc

01845 577896

Tom Haughey, Chief Executive Officer

Peter Davison, Finance Director


RBS Hoare Govett Ltd

020 7678 8000

John MacGowan

Stephen Bowler


Pelham PR     

0207 337 1500    

Alex Walters

Francesca Tuckett


            


This information is provided by RNS
The company news service from the London Stock Exchange
 
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