Interim Results

Severfield-Rowen PLC
26 September 2006


26 September 2006


                       SEVERFIELD-ROWEN - RECORD RESULTS

                             2006 Half Year Results


Severfield-Rowen Plc, the market leading structural steel group, announces its
half year results to 30 June 2006.


                                                           2006              2005          Change
                                                      Half year         Half year

Revenue                                                £130.77m          £112.03m            +17%
Profit from operations                                 £ 11.39m            £7.20m            +58%
Profit before tax                                       £11.81m            £7.34m            +61%
Basic earnings per share                                 39.95p            24.92p            +60%
Dividend per share                                       20.00p            12.50p            +60%



Highlights
     
•    Operating margin increased to 8.7% (2005: 6.4%)

•    Net margin increased to 9.0% (2005: 6.6%)

•    Strong order book totalling £218m (2005: £158m)

•    Cash balance of £27.10m (2005: £15.28m)

•    All core businesses currently performing ahead of management's expectations



Commenting, Peter Levine, Chairman, said:

'Severfield-Rowen has delivered another set of record half year results, with
profits, earnings per share, cash balances and dividends all increasing
significantly.  We are particularly pleased with the increase in both operating
and net margins.

'The Group continues to make significant progress, with current trading ahead of
management's expectations.

'Our excellent order book gives us good visibility and we are operating in a
buoyant market which is experiencing a high demand for large scale projects.
With strong demand for the Group's products and services, group-wide production
efficiencies enhancing margins and with every group subsidiary contributing
profitably, we are confident in the Group's prospects for the second half and
beyond.'



Enquiries

Severfield-Rowen Plc
Peter Levine, Chairman                               [phone]
Peter Davison, Finance Director                      [phone]

Financial Dynamics
Susanne Walker                                       [phone]



INTERIM STATEMENT 2006

INTRODUCTION

The Group produced a record performance in the first half of 2006.  Revenue
increased 17%, and profit before tax grew 61%   Earnings per share increased 60%
to 39.9p and the Group's cash balance stood at £27.1m at the period end.  We are
particularly pleased to report a notable increase in the Group's operating
margin which moved up from 6.4% in 2005 to 8.7%; net margins were also
substantially ahead at 9.0%.

These results reflect the strong financial and market leading position of the
Group with every Severfield-Rowen company contributing to profits and producing
results ahead of expectations.

Severfield-Rowen's performance is an example to the industry, not just in the UK
but throughout the world, as we set new standards in the construction and
engineering industries.


FINANCIALS

Revenue in the period was £130.77m (2005: £112.03m) and operating profit was
£11.39m (2005: £7.20m) which produced an increased operating margin of 8.71%
(2005: 6.42%).

Profit before tax increased 60.9% to £11.81m (2005: £7.34m) producing a net
margin of 9.03% (2005: 6.55%).  After a tax charge of £3.66m (2005: £2.27m)
profit after tax also increased 60.9% to £8.15m (2005: £5.06m).

Basic earnings per share increased by 60.3% to 39.95p (2005: 24.92p).

During the first six months of the year capital expenditure amounted to
approximately £4.6m (2005: £2.1m).

The period ended with the Group having a cash balance of £27.1m (2005: £15.28m).
Cash inflow from operating activities was £8.73m (2005: inflow £13.03m).
Significant cash outflows in the period included dividends paid of £5.00m,
corporation tax paid of £2.59m and net expenditure on assets of £4.06m.

Borrowings, representing amounts due on hire purchase contracts, amounted to
only £0.23m, leaving the Group with a net funds surplus of £26.87m.

Dividend

Reflecting the Group's performance in the first half, its strong financial
position and the Directors' confidence in the future prospects for the Group,
the Board is recommending a 60% increase in the dividend to a record 20.0p per
share (2005: 12.5p). This maintains the Board's policy of having the dividend
covered approximately 2.0 times by earnings at the interim stage (2005: 1.99
times).  The interim dividend will be paid on 27 October 2006 to shareholders on
the register on 6 October 2006.


BOARD APPOINTMENT & EMPLOYEES

The Group continues to take considerable strides forward and credit for this is
down to our tremendous workforce of whom the directors are very proud.

I am pleased to welcome Geoff Wright who has been appointed to the Board as an
independent non-executive Director, with immediate effect.  Geoff, aged 63, is a
well-known figure in the construction industry.  He retired this summer as the
Director of Construction at Hammerson Plc where he worked for the previous 37
years.  He is also non-executive Director with English Partnerships.  Geoff's
extensive experience in the development and construction sector will be a
significant asset for the Group as it moves forward. No other information falls
to be disclosed under Listing Rule 9.6.13.

The Board is also pleased to confirm the appointment of Peter Ellison as the
Group's Operations Director.


OPERATIONS

Group overview

The principal business of the Group is carried out by its four main operating
companies: Severfield-Reeve Structures, Watson Steel Structures, Rowen
Structures and Atlas Ward Structures.

The Group is the clear market leader in its sector and its production
facilities, technology and broad range of structural steel services are
unparalleled in the industry.  Sustained investment preserves the Group's
advantage in the industry.  Margins received constant attention and have shown
significant improvement in the first six months of 2006.

The core businesses of the Group, each trading profitably and ahead of
expectations, reflect a balanced and comprehensive approach to the varied
demands of the structural steel market:
     
•    Severfield-Reeve Structures, the single largest production unit in the UK 
     in terms of capacity and an industry leader in efficiency and use of 
     technology;

•    Watson Steel Structures, a world leader in specialist steel work used in 
     stadia and bridges;

•    Rowen Structures, an expert in complex projects such as airports and office 
     blocks;

•    Atlas Ward Structures, reinvigorated through membership of the Group has in 
     the short time since its acquisition in 2005 attained leadership of the 
     shed and portal frame market.

The broad range of capabilities reflected, together with the Group's financial
strength and excellence of its workforce, enable Severfield-Rowen to benefit
from, and be resilient to, the ever changing and evolving market place.

Contracts

Projects carried out by the Group in the first six months of the year include:
     
•    Ongoing retail development opposite BBC Television Centre, White City, 
     London

•    Office development at No.1 Coleman Street, London

•    Redevelopment and enlargement of the Pollok retail centre in Glasgow
     
•    Retail and residential development in the Princesshay area of Exeter
     
•    Retail development at the Grand Arcade, Wigan

•    Development of a new plaster calcination and milling facility for British 
     Gypsum at East Leake, Leicestershire

•    New printing facility for News International in Broxbourne, Hertfordshire
     
•    Retail and leisure development at the Eagle Centre, Derby

•    Office and retail development at Piccadilly, London

•    Ongoing works at Heathrow Airport Terminal 5 for BAA plc

•    Arena and Conference Centre, Kings Waterfront, Liverpool

•    Two grandstands, Aintree Racecourse

•    Steelwork for O2 Arena and Waterfront

•    Finnieston Bridge arching the river Clyde, Glasgow

•    New Ikea store at Ashton-under-Lyme near Manchester

•    Next Directory  distribution centre in Rotherham

•    Lex Autos car components distribution centre in Chorley

•    Rebuilding of a TNT distribution centre in Lutterworth


OUTLOOK

The Group continues to make significant progress, with current trading ahead of
management's expectations.

Our excellent order book gives us good visibility and we are operating in a
buoyant market which is experiencing a high demand for large scale projects.
With strong demand for the Group's products and services, group-wide production
efficiencies enhancing margins and with every group subsidiary contributing
profitably, we are confident in the Group's prospects for the second half and
beyond.


PETER LEVINE
CHAIRMAN

26 September 2006




Consolidated Income Statement
                                                    Six months ended    Six months ended          Year ended
                                                        30 June 2006        30 June 2005    31 December 2005
                                                         (unaudited)         (unaudited)           (audited)
                                                                £000                £000                £000

Revenue                                                      130,766             112,029             236,722
Cost of sales
                                                           (116,989)           (102,502)           (212,100)
Gross profit                                                  13,777               9,527              24,622

Other operating income                                            17                  45                  63
Distribution costs                                             (590)               (551)               (784)
Administrative expenses                                      (1,821)             (1,827)             (4,597)
Share of results of associates                                     5                   3                 (1)
Profit from operations                                        11,388               7,197              19,303

Investment income                                                498                 197                 459
Finance costs                                                   (77)                (56)               (110)
Profit before tax                                             11,809               7,338              19,652

Tax                                                          (3,659)             (2,274)             (6,137)
Profit for the period                                          8,150               5,064              13,515

Earnings per share:
Basic                                                         39.95p              24.92p              66.39p
Diluted                                                       39.95p              24.92p              66.39p





Consolidated Statement of Recognised Income and Expense

                                                    Six months ended    Six months ended          Year ended
                                                        30 June 2006        30 June 2005    31 December 2005
                                                         (unaudited)         (unaudited)           (audited)
                                                                £000                £000                £000

Actuarial loss on defined benefit pension scheme                   -                   -               (745)
Tax on items taken directly to equity                              -                   -                 224
Net expense recognised directly in equity                          -                   -
                                                                                                       (521)

Profit for the period from continuing operations               8,150               5,064              13,515
Total recognised income and expense for the                    8,150               5,064              12,994
period attributable to equity shareholders





Consolidated Balance Sheet
                                                              At                  At                  At
                                                    30 June 2006        30 June 2005    31 December 2005
                                                     (unaudited)         (unaudited)           (audited)
                                                            £000                £000                £000

ASSETS

Non-current assets
     Goodwill                                              6,732               6,661               6,732
     Other intangible assets                               1,308                   -               1,008
     Property, plant and equipment                        39,098              36,882              36,784
     Interests in associates                                  41                 583                  36
                                                          47,179              44,126              44,560
Current assets
     Inventories                                           2,945               5,916               7,318
     Trade and other receivables                          46,519              34,927              32,419
     Cash and cash equivalents                            27,100              15,278              30,132
                                                          76,564              56,121              69,869

Total assets                                             123,743             100,247             114,429

LIABILITIES

Current liabilities
     Trade and other payables                             53,516              41,121              48,221
     Tax liabilities                                       4,319               2,726               3,251
     Obligations under finance leases                        228                 455                 363
                                                          58,063              44,302              51,835
Non-current liabilities
     Retirement benefit obligations                        6,384               4,721               6,384
     Deferred tax liabilities                                943               1,204                 943
     Obligations under finance leases                          -                 227                  66
                                                           7,327               6,152               7,393

Total liabilities                                         65,390              50,454              59,228

NET ASSETS                                                58,353              49,793              55,201

EQUITY

Share capital                                              2,040               2,039               2,040
Share premium                                              9,770               9,743               9,770
Other reserves                                               139                 139                 139
Retained earnings                                         46,404              37,872              43,252
TOTAL EQUITY                                              58,353              49,793              55,201




Consolidated Cash Flow
                                                    Six months ended    Six months ended          Year ended
                                                        30 June 2006        30 June 2005    31 December 2005
                                                         (unaudited)         (unaudited)           (audited)
                                                                £000                £000                £000

Cash flows from operating activities
Cash generated from operations                                 8,732              13,032              35,543
Interest paid                                                   (77)                (56)               (139)
Tax paid                                                     (2,591)             (3,324)             (5,824)
Net cash from operating activities                             6,064               9,652              29,580


Cash flows from investing activities
Proceeds from sale of property, plant and                        563                  93                 648
equipment
Interest received                                                465                 192                 456
Acquisition of subsidiary, including costs                         -                                 (1,424)
                                                                                 (1,396)
Overdraft acquired with subsidiary                                 -             (3,592)
                                                                                                     (3,592)
Purchases of property, plant and equipment                   (4,625)             (2,134)             (4,216)
Purchases of intangible fixed assets                           (300)                   -             (1,008)
Net cash used in investing activities                        (3,897)             (6,837)             (9,136)


Cash flows from financing activities
Proceeds from the issue of share capital                           -                 340                 368
Repayment of borrowings                                            -             (2,453)             (2,453)
Payment of finance lease liabilities                           (201)               (363)               (616)
Dividends paid                                               (4,998)             (2,906)             (5,456)
Net cash used in financing activities                        (5,199)             (5,382)             (8,157)


Net (decrease)/increase in cash and cash                     (3,032)             (2,567)              12,287
equivalents
Cash and cash equivalents at beginning of period              30,132              17,845              17,845
Cash and cash equivalents at end of period                    27,100              15,278              30,132



Notes to Interim Report
     
1)   Basis of preparation

The interim financial information has been prepared in accordance with
International Financial Reporting Standards ('IFRS') as adopted for use in the
European Union and in accordance with the accounting policies included in the
Annual Report for the year ended 31 December 2005, which have been applied
consistently throughout the current and preceding periods.

The interim financial information does not constitute statutory accounts within
the meaning of Section 240 of the Companies Act 1985.  The interim results to 30
June 2006 and 2005 are neither audited nor reviewed by the auditors.  The
financial information of the full preceding year is based on the statutory
accounts for the financial year ended 31 December 2005.  Those accounts, upon
which the auditors issued an unqualified opinion, have been delivered to the
Registrar of Companies.
     
2)   Taxation

Taxation for the six months to 30 June 2006 has been shown at the rate estimated
to be applicable for the full year.

3)   Dividends payable to equity shareholders

                                       Six months ended     Six months ended           Year ended
                                           30 June 2006         30 June 2005     31 December 2005
                                                   £000                 £000                 £000

Ordinary dividend paid                            4,998                2,906                5,456
                                                 ______               ______               ______


In addition to the above, an interim dividend of 20.00p per ordinary share
(2005: 12.50p) will be paid on 27 October 2006 to shareholders on the register
on 6 October 2006.  The ex-dividend date will be 4 October 2006.

4)   Earnings per share

Earnings per share is calculated as follows:
                                               Six months    Six months ended          Year ended
                                                    ended        30 June 2005    31 December 2005
                                             30 June 2006                £000                £000
                                                     £000

Profit for the period                               8,150               5,064              13,515
                                                   ______              ______              ______

Weighted average of number of shares           20,401,969          20,317,908          20,358,229
in issue

Weighted average of number of shares           20,401,969          20,322,872          20,358,229
in issue, allowing for dilutive
effect of share options

Basic earnings per share                           39.95p              24.92p              66.39p

Diluted earnings per share                         39.95p              24.92p              66.39p

     
5)   Reconciliation of movement in total equity
                                                       At                  At                  At
                                             30 June 2006        30 June 2005    31 December 2005
                                                     £000                £000                £000

Opening total equity                               55,201              47,295              47,295
Profit for the period                               8,150               5,064              13,515
Dividends paid in period                          (4,998)             (2,906)             (5,456)
Issue of share capital                                  -                 340                 368
Actuarial loss on defined benefit                       -                   -               (745)
pension scheme
Deferred income taxes on pension                        -                   -                 224
benefit
Closing total equity                               58,353              49,793              55,201
     

6)   Analysis of net funds
                                                      At                  At                  At
                                            30 June 2006        30 June 2005    31 December 2005
                                                    £000                £000                £000

Cash in hand                                      27,100              15,278              30,132
Finance leases                                     (228)               (682)               (429)
Closing net funds                                 26,872              14,596              29,703

     
7)   Reconciliations of group profit from operations to cash generated from 
     operations

                                         Six months ended    Six months ended          Year ended
                                             30 June 2006        30 June 2005    31 December 2005
                                                     £000                £000                £000

Profit from operations                             11,388               7,197              19,303

Adjustments for:

Depreciation of property, plant and                 1,668               1,113               2,719
equipment
Loss on disposal of property, plant                    80                  37                  56
and equipment
Share of results of associated                        (5)                 (3)                   1
companies
Provision against loan from                             -             -                       543
associated company
Operating cash flows before changes                13,131               8,344              22,622
in working capital


Decrease in inventories                             4,373               7,893               6,491
(Increase)/decrease in receivables                                      2,849               5,729
                                                 (14,067)
Increase/(decrease) in payables                     5,295             (6,054)                 701
Cash generated from operations                      8,732              13,032              35,543



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