Interim Management Statement

RNS Number : 6164D

Severfield-Rowen PLC

18 May 2012

 



Interim Management Statement

Severfield-Rowen Plc, the market leading structural steel group, issues this Interim Management Statement covering the period to 18 May 2012.

Introduction

Severfield-Rowen continues to perform well in the UK despite sentiment remaining subdued given the economic and sector backdrops.  All of our operations in the UK are fully loaded and we remain focused on delivering value to our clients.

JSW Severfield Structures Ltd in India is now reaching its target output levels and is making robust commercial progress in promoting and delivering its value proposition to the Indian market.

Current Trading and Financial Position

The Company's trading performance during the period has been in line with our expectations and there has been no material change to our financial position since the year end.

UK

The UK order book of £216 million remains strong; continuing to reflect our success in the more active sectors of the market and is broadly level with the £221 million order book reported in March 2012.

Notwithstanding our identified prospects, we remain cautious about the timing of UK economic and construction sector recoveries.

JSW Severfield Structures Ltd (JSSL), India

Operations in India are making good progress.  Fabrication output at the plant in Bellary has improved in the past two months and has now achieved our targeted productivity levels, with production expected to benefit further from an increasingly favourable order book mix going forward. 

The order book currently stands at £36 million and, while lower than previously reported, it provides for all of our production requirements for the remainder of this calendar year and is supported by a growing and higher quality pipeline of prospects now approaching £100 million. 

The market is listening to and understanding our value proposition, prospects are becoming more numerous and, we are, accordingly becoming more selective in our choice of business.

We are confident that 2012 will be a year of progress in India where we expect a positive financial contribution to the Group and the finalisation of our expansion plans at JSSL.

Outlook

While full year results are anticipated to show a marginal improvement over 2011 and improved cash generation during the year, the timing of key projects will place a greater weight towards the second half of the year.

In the UK, we will continue to consolidate our market leading position despite the very tough conditions, but remain of the view that recovery in our markets is still distant.

In India, we will build upon our strong initial progress, devoting the necessary energy and resources to develop the business further.

The Group thus remains on track to deliver results for the full year that are in line with our expectations.

-Ends-

For further information, please contact:

Severfield-Rowen Plc	John Dodds Chairman Tom Haughey Chief Executive Officer Alan Dunsmore Finance Director	01845 577896 01845 577896 01845 577896
Jefferies Hoare Govett	Simon Hardy Harry Nicholas	020 7029 8316 020 7029 8316
Pelham Bell Pottinger	Archie Berens Zoe Sanders Guy Scarborough	020 7861 3112 020 7861 3887 020 7861 3870

 

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