Interim Management Statement

RNS Number : 9862K

Severfield-Rowen PLC

29 April 2010

 



29 April 2010

Interim Management Statement

Severfield-Rowen Plc, the market leading structural steel group, issues this Interim Management Statement covering the period to 29 April 2010.

Current Trading

The Company's trading performance for 2010 to date remains in line with management's expectations with all group companies operating at their new 2010 levels of capacity and focused on the provision of high levels of satisfaction in the execution of clients' projects.

Demand and pricing levels in the UK and Ireland are poor, as previously predicted by management, who continue to believe that 2010 will be the trough year for the industry.

In growing its UK market share, the Company is demonstrating its relative competitiveness and financial strength in particularly harsh times for the industry

As has been widely reported in the media, steel product prices have already risen and will continue to rise in the first half of 2010 due to raw material cost increases. The Company remains very aware of these movements and has taken steps to ensure that their impact is minimal.

Order Book

The Company's order book currently stands at £241 million, up from £219 million on 23 March 2010.

Orders have been won in a number of sectors, and significantly include the award of structural steelwork for the new Terminal 2 building at Heathrow Airport, following a competitive tender process. The steelwork will be delivered to site between summer 2010 and spring 2011.

As anticipated, no new export business has been awarded, albeit opportunities remain, particularly in infrastructure markets.

JSW Severfield Structures Ltd

The Joint Venture Company in India is of significant strategic importance in achieving the Group's future growth ambitions.  The Company is only a few months from the commencement of commissioning and first production at its plant in Bellary, Karnataka.  The project remains on time and on budget.

The second Joint Venture, to design, manufacture and install complementary metal deck flooring, will also commence operations in the summer of 2010 as scheduled.

Conclusion

The Company remains well positioned for the challenging market conditions through 2010 in the UK, and is prepared and looks forward to growth through its joint venture in India.

For further information, please contact:

Severfield-Rowen Plc	Toby Hayward Chairman	01845 577896
	Tom Haughey Chief Executive Officer	01845 577896
	Alan Dunsmore Finance Director	01845 577896
RBS Hoare Govett Ltd	John MacGowan	020 7678 8000
	Stephen Bowler	020 7678 8000
Pelham Bell Pottinger	Alex Walters	020 7337 1500
	Francesca Tuckett	020 7337 1500

 

END

 

 

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