Final Results - Year Ended 31 December 1999

Severfield-Rowen PLC
29 March 2000

                             Severfield-Rowen Plc
                                       
                           1999 Preliminary Results
                    Strong result in challenging conditions

Severfield-Rowen  Plc,  the  structural  steel  group,  today  announces   its
preliminary results for the year ended 31 December 1999.

Overview

* Turnover £112.0m (1998: £129.8m)
*  Pre-tax  profit  of  core business £9.8m (1998:  £11.6m),    significantly
 exceeding expectations, despite challenging conditions
* Group pre-tax profit, before exceptional losses, £8.8m (1998: £10.2m)
* Increase in group trading operating margin to 8.1%
 (1998: 7.9%),
* Exceptional loss before tax of £2.9m on sale of principal Manabo business
* Total dividend maintained at 12.0p
* Nil gearing with strong year end cash balance of £4.9m
* Record order book in excess of £70m at year end
* Building of fifth production line commenced at Dalton
* Market leadership position to be maintained

Commenting on the results, Peter Levine, Chairman, said:

  'In  what  was  a difficult year for the structural steel sector,  the  1999
  results  of  Severfield-Rowen  reflect a  most  creditable  performance  and
  demonstrate  the  sound progress of the Group's core business.   During  the
  year   Severfield-Rowen  consolidated  its  leading  position  in   the   UK
  structural  steel  market and ended the year on a high note  with  a  record
  order  book  of £70 million, a strong cash balance and an expansion  of  its
  production capabilities.'
  
  'We  expect the strength of the Group to grow in its respective markets  and
  2000  to  be  a year of solid progress in the context of challenging  market
  conditions.'

For further information:

Severfield-Rowen Plc                    020 7831 3113 - 29 March 2000
Peter Levine, Chairman                  Thereafter 01132 469 993
Peter Davison, Finance Director         Thereafter 01845 577 896

Financial Dynamics
Sarah Marsland/Richard Mountain         020 7831 3113


PRELIMINARY STATEMENT


The  Group's results for the year ended 31 December 1999 were most  creditable
against a background of challenging market conditions in the structural  steel
industry. Returns in the core business of design, fabrication and erection  of
structural steelwork significantly exceeded expectations.

In  March 2000 the principal business and assets of the loss making subsidiary
Manabo  were sold, with the resulting loss on sale being provided for in  full
in 1999.

Financial Results

Group  turnover fell by 13.7% to £112.0m (1998: £129.8m) and operating profit,
before  exceptional losses, was £9.1m (1998: £10.2m).  The  loss  on  sale  of
Manabo was £2.9m.

The  Group's operating profit reduced by 11.2%, prior to any write-off due  to
the sale of the assets of Manabo.  However, the overall Group operating margin
increased  from  7.9%  in 1998 to 8.1% in 1999 with the operating  margins  in
structural steelwork increasing from 8.7% to 9.0% respectively.

The  effective tax charge for the year was 30.8% compared with  26.7%  in  the
previous  year.   The  low  rate in 1998 was the result  of  the  rollover  of
goodwill on the sale of the business and assets of Structural Metal Decks Ltd.

Basic  earnings per share were 20.5p (1998: 43.9p).  This calculation is based
on  the  profit  after taxation of £4,103,000 and 20,013,133 ordinary  shares,
which is the weighted average number of shares in issue during the year.  This
calculation  however reflects the effect of the write-off of £2.85m  of  fixed
assets  and  stock  as a result of the sale of the business of  Manabo,  which
accounts for 10.3p per share.

Adjusted  earnings per share for the year ended 31 December  1999  were  30.8p
(1998:  35.9p).   This  is based on the profit after taxation,  excluding  the
exceptional  loss,  of  £6,169,000 (1998: £7,116,000)  and  20,013,133  (1998:
19,842,464) ordinary shares.

The  year  ended  with nil gearing and a cash balance of £4.9m.   Net  assets,
representing shareholders funds, increased by 7.8% to £30.2m. This equates  to
a  value per share at 31 December 1999 of 150.6p, compared with 140.7p at  the
end of 1998.



Dividend
Despite  a  reduction in operating profit the Board has maintained  the  total
dividend at 12.0p.  This move reflects the Directors' continued confidence  in
the  Group's  core  business.  Dividend cover remains at a  most  satisfactory
level  of  2.57 times adjusted earnings.  The final dividend is payable  on  1
June 2000 to shareholders on the register on 8 May 2000.

Share Buy Back
At the Annual General Meeting on 26 May 2000 the Company will ask shareholders
to renew the authorisation of the Board to purchase for cancellation up to 10%
of  the issued share capital of the Company.  This authority will be exercised
only  when market conditions are appropriate.  To date no purchases have  been
made.

Acquisition
In  January  1999, Severfield-Rowen Plc purchased a 25.1% strategic  stake  in
Kennedy Watts Partnership Ltd, a CAD/CAM steelwork design company.  The  total
consideration, including costs, was £464,000 of which £408,000 was paid by the
issue  of £136,912 10p ordinary shares of Severfield-Rowen Plc and the balance
in cash.

Disposals
The  comparative figures for 1998 reflect the sale of the business and  assets
of  Structural  Metal Decks Ltd in July of that year.  The  consideration  was
£1.80m  and resulted in a profit on sale of £1.68m which was included  in  the
accounts as an exceptional item.



Review of Operations

Core Business Overview

In  the face of challenging conditions the returns in the core business of our
Group,  comprising primarily Severfield-Reeve Structures and Rowen Structures,
significantly  exceeded expectations.  Key features of the  core  business  in
1999 were:

* operating margin increased to 9.0% (1998: 8.7%);
* pre-tax profit of £9.8m (1998: £11.6m);
* a record £70m order book at the close of the year; and
* commencement of the building of a fifth production line at our Dalton site.

Pressure  on margins was evident throughout the year and a calculated decision
was  taken not to buy turnover. This together with efficiencies and a  greater
emphasis towards negotiated contracts helped mitigate external market effects.
As a result operating margins increased in 1999.

The  year ended well and in January 2000 the Group had a record order book  of
£70m.

Reflecting  the increase in demand, building of the fifth production  line  at
Dalton  commenced  in December 1999.  When operative this line  will  increase
average  weekly production from 1,100 tonnes to 1,400 tonnes.  This  underpins
our  view  of  Dalton  as  the  single largest and  most  efficient  site  for
structural steel production in Europe.

Severfield-Reeve Structures
Production  efficiency  continued at an outstanding level  during  1999.   The
operating efficiencies achieved by the Company are already unsurpassed  within
the  industry  and  the  addition of line 5 is expected  to  consolidate  this
position.

Contracts  were  undertaken  in a wide variety  of  sectors  during  the  year
including  the first stage of the Paternoster Square redevelopment  at  Christ
Church  Court in London, hospitals in Glasgow, Edinburgh and Durham, a  number
of  new  power  generation projects and the new exhibition centre,  Excel,  in
Docklands,  London.  International work continued with contracts  including  a
hotel  in St Lucia, a power station in Egypt and further oil and gas  work  in
Kazakhstan, the latter both for Bechtel.

The year 2000 has started very satisfactorily for Severfield-Reeve Structures.
While  general market conditions are still challenging, the order book remains
at a record level.


New contracts include:
* A major retail development at Ocean Terminal, Leith
  Docks, Edinburgh;
* The Lowry Galleria entertainment centre project
  Manchester;
* Extension to town centre shopping complex in Basingstoke
  ; Caterpillar Production Facility in Leicester; and
* Office blocks at Bishopsgate and Northcliffe House in the
  City.

Relative  to the prevailing market conditions in our industry Severfield-Reeve
Structures  produced  a strong performance in 1999.  Although  there  is  some
evidence  of renewed pressure on margins, taking into account the strength  of
our  order book and the operating efficiencies of our Dalton Site, Severfield-
Reeve Structures is well positioned for 2000.

Rowen Structures
Rowen  Structures  performed satisfactorily in 1999. Some of  the  fabrication
work  previously sub-contracted by Rowen is now being brought in-house  to  be
fabricated  at  either Nottingham or Dalton.  The beneficial  effect  of  this
continues to be felt in 2000.

A  range of major contracts were performed by Rowen in 1999.  These included a
prestigious office development at Woolgate Exchange in London, the Terminal  3
expansion  at Heathrow, a pharmaceutical facility for Pfizer in Sandwich,  the
ongoing Brindley Place office development in Birmingham and the South Terminal
extension at Gatwick.

Contracts for 2000 include:
* Stansted Terminal Extension for BAA;
* North Terminal Extension at Gatwick for BAA;
* A large leisure and residential development in
  Birmingham;
* A large distribution depot for Sainsbury in Haydock; and
* A theatre complex in Durham.

The  current  year  is expected to show that Rowen will  continue  to  make  a
positive contribution to the success of the Group.

Steelcraft Erection Services
During  1999 the continuing importance and value of Steelcraft as the in-house
erection  service  for  the  Group was demonstrated.   Despite  only  erecting
structures  for  the  Group it is now believed to  be  the  largest  and  most
efficient  erection company in the UK, judged in terms of number of  employees
and tonnage erected.

An  example  of the performance of Steelcraft in 1999 was in the  erection  of
9,000 tonnes of steelwork at Excel, the Exhibition Centre for London, in  what
is believed to be a record erection programme for the capital of 16 weeks.

Severfield-Reeve Projects
Severfield-Reeve  Projects continued to perform satisfactorily  in  1999  with
turnover and profit before tax ahead of budget.

1999 also saw the conclusion of lengthy negotiations with a major client which
in itself will provide a significant contribution to the Company's performance
in  2000.   The  Company also gained valuable contracts from a number  of  new
clients which have helped to establish a solid foundation for the future.

Manabo
On  3  March 2000 the sale of the principal business and assets of Manabo  was
completed.    The  initial sale proceeds received were  £2.1  million  with  a
further  £600,000 payable in two equal instalments over the next 2 years.   In
addition there is a variable royalty payment over a five year period, up to  a
maximum of £475,000.  The effect of the sale on the Group results for 1999 was
a £2.9 million write down of assets.

The  remaining parts of the Manabo business relate to the manufacture and sale
of  cleaning and knife sharpening machines which are non-trading.  The  Manabo
losses  incorporated  in  the  1999  accounts  include  a  write-down  to  net
realisable  value of all its assets.  As such no material adverse consequences
will  affect  the  current  year.  At  the  time  of  writing  this  statement
discussions  are  continuing  with a number  of  parties  to  dispose  of  the
remainder of Manabo.

Outlook

The  Group is rightly proud of its achievements.  It is the unsurpassed leader
in  its  UK  market place, at the leading edge of technology  and  efficiency,
achieving  unmatched  margins  through genuine innovation  and  good  business
practice, and making credible profits, with cash generation and with solid and
valuable assets.

The year 2000 will see Severfield-Rowen returning to concentrating on its core
business.  The Board is looking forward to facing the challenges which are
still being confronted in the structural steel industry and is confident that
the Group will continue to maintain its market leadership.  It is also
intending to develop the business through either organic or acquisitive
growth, as and where circumstances permit.

We expect the strength of the Group to grow and 2000 to be a year of solid
progress in the context of a challenging market.



                             Severfield-Rowen Plc
                                       
   Consolidated Profit and Loss Account for the year ended 31 December 1999
                                       
               Continuing       Discontinued Operations        1999
               Operations                  
                            Normal   Exceptional    TOTAL     TOTAL
                                        Items
                      £000     £000          £000      £000       £000
                                                                      
Turnover           111,155      839             -       839    111,994
Cost of Sales     (99,018)  (1,002)       (1,872)   (2,874)  (101,892)
                   -------   ------        ------    ------     ------
Gross profit        12,137    (163)       (1,872)   (2,035)     10,102
                                                                      
Distribution                                                          
costs                (361)    (457)             -     (457)      (818)
Administration                                                        
expenses           (1,868)    (315)       -           (315)    (2,183)
                                                 
                   -------   ------        ------    ------     ------
                     9,908    (935)       (1,872)   (2,807)      7,101
Other                                                                 
operating                                                             
income                  59       32             -        32         91
                    ------   ------        ------    ------     ------
Operating                                                             
profit               9,967    (903)       (1,872)   (2,775)      7,192
                                                                      
Loss on                                                               
disposal of                                                           
assets in                                                             
discontinued                                                          
business                 -        -         (980)     (980)      (980)
                    ------   ------        ------    ------     ------
                     9,967    (903)       (2,852)   (3,755)      6,212
                                                                      
Interest                                                              
payable and                                                           
similar                                                               
charges              (192)     (95)             -      (95)      (287)
                   -------   ------        ------    ------     ------
Profit on                                                             
ordinary                                                              
activities                                                            
before tax           9,775    (998)       (2,852)   (3,850)      5,925
                                                                      
Tax on profit                                                         
on ordinary                                                           
activities         (2,908)      300           786     1,086    (1,822)
                    ------   ------        ------    ------     ------
Profit on                                                             
ordinary                                                              
activities                                                            
after tax for                                                         
the financial                                                         
year                 6,867    (698)       (2,066)   (2,764)      4,103
                                                                      
Dividends                                                             
payable to                                                            
equity                                                                
shareholders       (2,414)        -             -         -    (2,414)
                    ------   ------        ------    ------     ------
Profit                                                                
retained,                                                             
transferred to                                                        
reserves             4,453    (698)       (2,066)   (2,764)      1,689
                                                                      
Basic earnings                                                        
per share                                                       20.50p
Adjustment for                                                        
exceptional                                                           
items                                                           10.32p
                                                                ------
Adjusted                                                              
earnings per                                                          
share                                                                 
excluding                                                       30.82p
exceptional
item
                                                                ======
Diluted                                                               
earnings per                                                    20.32p
share
                                                               -------
Dividends per                                                         
share
  Interim                                                             
dividend paid                                                    5.00p
  Final                                                               
dividend                                                         7.00p
proposed
                                                                ------
                                                                      
Total                                                           12.00p
                                                                ------


Consolidated Profit and Loss Account for the year ended 31 December 1998

                                      1998 Continuing
                                         Operations
                                            TOTAL
                                             £000
                                                 
Turnover                                  129,805
Cost of Sales                           (116,258)
                                           ------
Gross profit                               13,547
                                                 
Distribution costs                          (952)
Administration expenses                   (2,452)
                                           ------
                                           10,143
Other operating income                         67
                                           ------
Operating profit                           10,210
                                                 
Loss on disposal of assets                       
in discontinued business                    1,676
                                           ------
                                           11,886
                                                 
Interest payable and                             
similar charges                               (4)
                                           ------
Profit on ordinary                               
activities before tax                      11,882
                                                 
Tax on profit on ordinary   
activities                                (3,175)
                                           ------
Profit on ordinary                               
activities after tax for                         
the financial year                          8,707
                                                 
Dividends payable to        
equity shareholders                       (2,384)
                                           ------
Profit retained,                                 
transferred to reserves                     6,323
                                                 
Basic earnings per share                   43.88p
Adjustment for exceptional                       
items                                     (8.02p)
                                           ------
Adjusted earnings per                            
share excluding                                  
exceptional item                           35.86p
                                          =======
Diluted earnings per share                       
                                           43.28p
                                          -------
Dividends per share                              
  Interim dividend paid                          
                                            5.00p
  Final dividend proposed                   7.00p
                                           ------
                                                 
Total                                      12.00p
                                           ------

Severfield Rowen Plc

Consolidated Balance Sheet
As at 31 December 1999


                                         1999                  1998
                                         £000                  £000
                                                      
Fixed Assets:                                         
     Intangible assets                        -                 396
     Tangible assets                     24,558              24,620
     Investment properties                  330                 233
     Investments                            464                   -
                                         ------              ------
                                                                   
                                         25,352              25,249
                                         ------              ------
Current Assets:                                                    
     Stocks                               5,236               4,491
     Debtors                             25,312              23,881
     Cash at bank and in hand             4,938               7,492
                                         ------              ------
                                         35,486              35,864
                                         ------              ------
Current Liabilities:                                               
     Creditors due within one                                      
year                                   (27,404)            (28,354)
                                         ------              ------
Net current assets                        8,082               7,510
                                         ------              ------
Total assets less current                                          
liabilities                              33,434              32,759
                                                                   
Creditors  due after  more  than                                   
one year                                                           
                                        (1,885)             (3,370)
Provision for liabilities and                                      
charges                                 (1,399)             (1,433)
                                         ------              ------
                                         30,150              27,956
                                         ------              ------
Capital and Reserves:                                              
     Called up share capital              2,002               1,987
     Share premium account                8,526               8,121
     Revaluation reserve                  1,609               1,536
     Merger reserve                         114                 114
     Profit and loss account             17,899              16,198
                                         ------              ------
Equity and total shareholders'                                     
funds                                    30,150              27,956
                                         ------              ------


Severfield Rowen Plc

Consolidated Cash Flow Statement
For the year ended 31 December 1999


                                         1999                 1998
                                         £000                 £000
                                                      
Net cash inflow from operating                                     
activities                                6,387               8,362
Return on investments and                                          
servicing of finance                      (197)                   7
Taxation                                (2,944)             (2,802)
Capital expenditure and                                            
financial investment                    (2,269)             (5,137)
Acquisitions and disposals                  344                 784
Equity dividends paid                   (2,403)             (2,230)
                                         ------              ------
Cash outflow before use of                                         
liquid resources and financing          (1,082)             (1,016)
Financing                               (1,472)             (1,310)
                                         ------              ------
Decrease in cash in the year            (2,554)             (2,326)
                                         ------              ------
Reconciliation of net cash  flow                                   
to movement in net funds
                                                                   
Decrease in cash in the year            (2,554)             (2,326)
Cash flow from movement in loans          1,484               1,362
and hire purchase contracts
                                         ------              ------
Change in net funds from cash           (1,070)               (964)
flows
Loan acquired with subsidiary                 -               (188)
New hire-purchase contracts                   -             (1,310)
                                         ------              ------
Movements in net funds in the           (1,070)             (2,462)
year
                                                                   
Net funds at 1 January 1999               2,651               5,113
                                         ------              ------
Net funds at 31 December 1999             1,581               2,651
                                         ------              ------


Severfield Rowen Plc

Statement of Total Recognised Gains and Losses


                                          1999                1998
                                          £000                £000
                                                      
Profit attributable to members            4,103               8,707
of the Group
Unrealised surplus on                        73                 109
revaluation of properties
Foreign currency translation                 12                (10)
gain/(loss)
                                         ------             -------
Total recognised gains and                4,188               8,806
losses for the year
                                         ------              ------


Reconciliation of Movements in                                     
Shareholders' Funds
                                                                   
Profit for the financial year               4,103             8,707
Dividends                                 (2,414)           (2,384)
Issue of shares - net                         420                52
Revaluation adjustment                         73               109
Foreign currency translation                   12               (10)
gain/(loss)
                                           ------            ------
Net addition to shareholders'               2,194             6,474
funds
Opening shareholders' funds                27,956            21,482
                                           ------            ------
Closing shareholders' funds                30,150            27,956
                                           ------            ------


Notes:

1.   The above financial information does not amount to full accounts within
     the meaning of section 240 of the Companies Act 1985.  Full accounts for
     the year ended 31 December 1999 have not yet been audited or delivered
     to the Registrar of Companies.  The Annual Report is due to be posted to
     shareholders on or around 26 April 2000.  A copy of the statutory
     accounts for the year ended 31 December 1998 has been delivered to the
     Registrar of Companies.  The Auditor's Report on those accounts was not
     qualified and did not contain a statement under section 237 (2) or (3)
     of the Companies Act 1985.

2.   The basic earnings per share figure for the year ended 31 December 1999
     is based on the profit after taxation of £4,103,000 (1998: £8,707,000)
     and 20,013,133 (1998: 19,842,464) ordinary shares, being the weighted
     average of the number of shares in issue during the period.

     The adjusted earnings per share figure for the year ended 31 December
     1999 is based on the profit after taxation, excluding the exceptional
     item, of £6,169,000 (1998: £7,116,000) and 20,013,133 (1998: 19,842,464)
     ordinary shares, being weighted average of the number of shares in issue
     during the period.