Interim Management Statement

RNS Number : 8389O

Severfield PLC

12 August 2014

 

12 August 2014

Interim Management Statement

Severfield plc, the market leading structural steel group, issues its Interim Management Statement covering the period to 11^th August 2014.

Current trading

The Group's performance and underlying financial position are satisfactory and together with a solid order book the Group remains on track for this financial year. The Group has also benefited from the sale of its investment property in June for £3.9m, which was in line with book value.

UK

The UK order book of £171m remains solid and the business continues to show improved stability following the reorganisation in the last financial year. Management's view of the market is unchanged, with continuing signs of improvement, but it remains likely to be later in the financial year before there is any notable impact on the size or mix of the order book.

JSW Severfield Structures Ltd (India)

The business is showing the intended improvement in operational performance for the year to date, with cost savings and improvements in production output both being evident. The order book stands at £34m.  The business development programme and improving the conversion of opportunities still remain priorities.

Outlook

The UK business continues to progress well and India is showing encouraging operational improvements with market development remaining an area of high focus. Overall, the Group continues to be ideally positioned for recovery in the UK construction market with its good market position and strong balance sheet.

For further information, please contact:

Severfield plc	Ian Lawson Chief Executive Officer	01845 577896
	Alan Dunsmore Finance Director	01845 577896
Jefferies International Limited	Simon Hardy	020 7029 8000
	Harry Nicholas	020 7029 8000
Bell Pottinger	Gavin Davis	020 7861 3159
	Will Bland	020 7861 3139

 

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