Interim Results

Severfield-Rowen PLC
26 September 2000


                             SEVERFIELD-ROWEN PLC
                                       
                Strong first half and exciting new developments

                   Unaudited Interim Results to 30 June 2000
                                       
Severfield-Rowen Plc, the structural steel group, today announces its  interim
results for the six months to 30 June 2000.

Overview

*    Turnover ahead 18% to £61.63 million (1999: £52.32 million)
*    Profit before tax of £4.21 million (1999: £3.97 million)
*    Basic EPS increased to 14.58p (1999: 13.69p)
*    Interim  dividend  increased to 5.25p (1999:  5.00p),  reflecting  strong
     current trading and the Board's confidence in the future
*    Sale and lease back planned for Dalton
*    New £5 million plate line to be built at Dalton
*    Principal business and assets of Manabo sold on 3 March 2000
*    Order book in excess of £65m at the half year
*    Market leadership position maintained

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

  'Severfield-Rowen  has produced another creditable result  in  the  face  of
  challenging  market  conditions.  We have invested  intelligently  over  the
  past  years  and  we  remain  the UK's market leader  in  structural  steel.
  Further  investment will be made at Dalton, with a new line  6  being  added
  for  fabrication of plated products.  Significantly we are also in  advanced
  negotiations  regarding  a sale and lease back of  our  Dalton  site  which,
  should  it  proceed, will release significant money for strategic deployment
  in our business.'
  
  'We  continue  to  focus on enhancing shareholder value, as demonstrated  by
  the  share  buy  back  programme,  and the exciting  developments  announced
  today,  and  we look forward to a strong performance from the Group  at  the
  full year stage.'

For further information:
Severfield-Rowen Plc                    020 7269 7249 - 26 September 2000
Peter Levine, Chairman                  Thereafter 01132 469 993
Peter Davison, Finance Director         Thereafter 01845 577 896

Financial Dynamics
Richard Mountain                        020 7269 7249
                                       
                                       
              INTERIM RESULTS FOR THE SIX MONTHS ENDED JUNE 2000
                                       
Introduction

The  first six months of 2000 have seen a very creditable performance from the
Group, with trading currently in line with budget for the full year.

As  I stated in our 1999 Annual Report, we completed the sale of the principal
business and assets of Manabo on 3 March 2000.  This enabled us to concentrate
on  the  two  major subsidiaries of the Group, Severfield-Reeve Structures  in
Dalton  and Rowen Structures in Nottingham, both of which are involved in  the
design, manufacture and erection of structural steelwork.

The  Group's  position as clear market leader and its reputation as  the  most
efficient  and profitable within the UK Structural Steelwork market  has  been
enhanced during the reporting period.

The  first  six months met the Board's expectations, with margin pressure,  as
anticipated,  continuing from the previous year.  There was  evidence  towards
the  end  of  the  period  that margins may be stabilising,  with  demand  and
capacity  for  steelwork  coming more into balance. Encouragingly,  the  first
tentative signs of upward movement in prices are currently being seen although
it is too early to identify this as a trend.

It  is pleasing to report that order levels and enquiries are very good,  with
the present order book at £65 million, with some orders extending into 2001.

The  majority of our contracts are in the UK market, although we have recently
been  awarded  our first, albeit small, order for the United  States  and  are
currently working for Bechtel on three power stations in Turkey consisting  of
over 10,000 tonnes of structural steel.

The  Group's financial position gets stronger each year. Despite heavy capital
expenditure  in  the  period, gearing was minimal at 30  June  2000  and  cash
continues to be generated at a commendable rate.

Later in my statement I refer to two exciting new developments for the Group,
firstly  a  new  plate line which will give the Group added value  and  higher
margins on plated products and secondly a projected sale and leaseback of  our
Dalton  facility which, should it proceed, will release significant money  for
strategic deployment in our business.

Finance

Turnover  in  the  period  increased by 18% to £61.63  million  (1999:  £52.32
million) producing an increased operating profit of £4.41 million (1999: £4.05
million).

Despite the continued pressure on prices, Group margins at the operating level
only  reduced to 7.1% compared to 7.7% in the corresponding period last  year.
We  are  currently  projecting  that these margin  levels  will  be  at  least
maintained during the second half of the year.

Profit  before tax was £4.21 million (1999: £3.97 million) after  an  interest
charge  of  £197,000 (1999: £78,000).  Assuming a tax charge of 30.75%  (1999:
31%) basic earnings per share were 14.58 pence (1999: 13.69pence).

During the first six months of the year capital expenditure amounted to  £3.26
million, primarily for the building of the 5th Production Line at Dalton.

As always we continue to manage carefully the Group's cash and at 30 June 2000
we  had a positive balance of £2.54 million.  Although this balance is reduced
from that of £4.94 million at 31 December 1999, it reflects the high level  of
capital expenditure during the period.

Borrowings,  primarily  representing amounts due on  hire-purchase  contracts,
amounted  to £3.52 million leaving the Group with net debt of £985,000  and  a
gearing level of only 3%.

Share Buy Back Programme

During the course of the first 6 months the Company purchased for cancellation
a total of 63,510 ordinary shares at an average price of £2.19.  Since 30 June
2000  these  purchases  have  continued with a further  185,000  shares  being
purchased for cancellation at an average price of £1.88.

Your  Directors envisage that this programme will continue and that  purchases
will  be  made by the Company when it is deemed appropriate and shares  become
available.

Dividend

The  strength  of  our current trading and the Directors'  confidence  in  the
future  have  led the Board to increase the interim dividend to 5.25pence  per
share  (1999: 5pence per share) which is covered 2.78 times by earnings.   The
interim  dividend  will  be paid on 27 October 2000  to  shareholders  on  the
register on 6 October 2000.

Structural Steel

The  principal  business  of  the  Group is carried  out  by  Severfield-Reeve
Structures and Rowen Structures.

It  is  generally acknowledged in our industry that we are the market leaders,
not  only in terms of capability but also production and efficiency. Margins
remain significantly above the average for the UK steelwork sector.

The  newly  built production line 5 at Dalton became operational in May  2000.
Currently  production at the Dalton site, believed to be  the  single  largest
steelwork  production facility in Europe, is averaging over 1,500  tonnes  per
week   of   structural  steel.  Rowen  Structures  continues   to   contribute
significantly to Group results.

Projects carried out in the first 6 months included:

*    Extension to town centre shopping complex in Basingstoke.
*    A production facility for Caterpillar in Leicester.
*    Two office blocks in the City, at Northcliffe House and Bishopsgate.
*    Retail development at Ocean Terminal, Leith Docks, Edinburgh.
*    Lowry Galleria entertainment centre in Manchester.
*    Power stations in Egypt and Great Yarmouth for Bechtel.
*    Leisure and residential development at Broadway, Birmingham.
*    Terminal extension for BAA at Stansted.
*    Distribution centre for J Sainsbury in Haydock.
*    Distribution warehouse for Federal Express at Stansted.

Enquiry  levels  for  projects both in the UK and world-wide,  extending  into
2001, are very encouraging.  Many are for work of a substantial size for which
the  Group is ideally suited in relation to both complexity and need for  fast
track fabrication and erection on site within rigorous timescales. It is  here
that  the  increasing reputation of our Group as the leading brand within  the
steelwork industry places us at a significant advantage.

Plate Line

One of the key features behind the maintenance of our predominant position  in
the  UK  structural steel industry has been the significant capital investment
we have made over the years.

To  ensure the continuation of this position the Board has decided to commence
building a new plate line at the Dalton site.  This will effectively be line 6
and will fabricate plated products for use in the core business.

Once  completed, this facility will be the only purpose built plant in the  UK
designed  wholly  around  manufacturing  plate.   Using  state  of   the   art
technology, the plant will be cost effective with plate being fabricated at  a
low  average  man hours per tonne.  We expect to produce in excess  of  15,000
tonnes  of  plated  product per annum from this plant,  which  should  have  a
positive effect on our overall margin.

The  total cost of the plate line is projected to be £5 million.  The land has
been acquired and machinery ordered and it is anticipated that the line should
be in production by the middle of 2001.

Sale and Leaseback

I  have  previously referred to Dalton's land and buildings being an important
factor  in  its growth. However, these are fixed non income generating  assets
and  it  is  your Directors' responsibility to ensure that all assets  of  the
Group  are  used  in the most efficient way to provide the maximum  amount  of
return.

Your Board is recommending that it would be in the best interests of the Group
to  unlock  the capital value in our freehold Dalton site by entering  into  a
sale and leaseback agreement with a third party investor.

Negotiations are at an advanced stage in relation to such a transaction which,
in  any  event,  will  be  subject  to  shareholders  consent.   Should  those
negotiations reach a satisfactory conclusion an announcement will be  made  at
the  appropriate time and full details will be provided in a separate circular
to shareholders.

Board Appointment

On  11  July  2000,  Brian Hick was appointed to the  Board  as  an  Executive
Director,  responsible for our international operations.   Brian  is  Managing
Director of our International subsidiary and is also a Director of Severfield-
Reeve Structures.  He has been with the Group for 11 years and we look forward
to him playing a significant role in the future.

Outlook

Our  core  business is currently fabricating steelwork at record  levels  with
excellent  order books and enquiry levels extending into 2001.   With  trading
currently in line with budget for the year, the Directors view the future with
confidence.

Whilst  industry margins remain relatively depressed compared to those in  the
past,  the  production  efficiency of the Group  ensures  significantly  above
industry  average  returns.  Accordingly the Group is well placed  to  benefit
substantially from any potential future increase in margins/prices.

I referred above to the two developments of a new line 6 and the proposed sale
and  leaseback  of  our  Dalton  facility. These  should  greatly  assist  the
continuing  progress of the Group and enhance the very exciting prospects  for
our business in the medium to long term.

Peter Levine
Chairman

                             Severfield-Rowen Plc
                                       
                     Consolidated Profit and Loss Account
                                       
                           Six Months  Six Months       Year
                                   to          to         to
                              30 June     30 June     31 Dec
                                 2000        1999       1999
                            Unaudited   Unaudited    Audited
                                 £000        £000       £000
                                                            

Turnover                       61,633      52,320    111,994
                             --------    --------   --------
Operating profit                4,406       4,046      7,192

Loss on disposal of
assets in discontinued
business                            -           -      (980)
                             --------    --------   --------
                                4,406       4,046      6,212

Net interest payable
and similar charges             (197)        (78)      (287)
                             --------    --------   --------
Profit on ordinary
activities before
taxation                        4,209       3,968      5,925

Taxation on profit
on ordinary activities        (1,294)     (1,230)    (1,822)
                             --------    --------   --------
Profit on ordinary
ctivities after
taxation for the period         2,915       2,738      4,103

Dividends payable
to equity shareholders        (1,048)     (1,001)    (2,414)
                             --------    --------   --------
Profit retained,
transferred to reserves         1,867       1,737      1,689
                             --------    --------   --------

Basic earnings per share       14.58p      13.69p     20.50p
Loss on disposal
of assets adjustment                -           -     10.32p
                             --------    --------   --------

Adjusted earnings per share    14.58p      13.69p     30.82p
                             --------    --------   --------

Diluted earnings per share     14.52p      13.54p     20.32p
                             --------    --------   --------

Dividends per share             5.25p       5.00p     12.00p

                                       
                                       
                             Severfield-Rowen Plc
                                       
                          Consolidated Balance Sheet
                                       
                           At 30 June  At 30 June  At 31 Dec
                                 2000        1999        1999
                            Unaudited   Unaudited     Audited
                                 £000        £000        £000
                                            

Fixed Assets:
  Intangible assets                 -         396          -
  Tangible assets              25,460      24,431     24,558
  Investment properties           330         233        330
  Investments                     464         450        464
                             --------    --------   --------
                               26,254      25,510     25,352
                             --------    --------   --------
Current Assets:
  Stocks                        4,442       5,837      5,236
  Debtors                      32,832      26,927     25,312
  Cash at bank and in hand      2,537       4,349      4,938
                             --------    --------   --------
                               39,811      37,113     35,486

Current Liabilities:
Creditors due
within one year              (31,844)    (28,299)   (27,404)
                             --------    --------   --------
Net current assets              7,967       8,814      8,082
                             --------    --------   --------
Total assets less
current liabilities            34,221      34,324     33,434

Creditors due after
more than one year              (944)     (2,639)    (1,885)

Provision for
liabilities and charges       (1,399)     (1,572)    (1,399)
                             --------    --------   --------
                               31,878      30,113     30,150
                             --------    --------   --------
Capital and Reserves:
  Called up share capital       1,996       2,002      2,002
  Share premium account         8,393       8,526      8,526
  Revaluation reserve           1,609       1,536      1,609
  Merger reserve                  114         114        114
  Profit and loss account      19,766      17,935     17,899
                             --------    --------   --------
                               31,878      30,113     30,150
                             --------    --------   --------

                                       
                             Severfield-Rowen Plc
                                       
                       Consolidated Cash Flow Statement
                                       
                                       
                          Six Months  Six Months        Year
                                  to          to          to
                        30 June 2000     30 June      31 Dec
                           Unaudited        1999        1999
                                £000   Unaudited     Audited
                                            £000        £000
                                       

Net cash flow from
operating activities              911       (159)      6,387

Returns on investments
and servicing of finance        (183)        (28)      (197)

Taxation                        (722)       (248)    (2,944)

Capital expenditure
and financial
investment                    (3,197)       (560)    (2,269)

Acquisitions and disposals      2,161        (42)        344

Equity dividends paid         (1,397)     (1,402)    (2,403)
                             --------    --------   --------
Cash outflow before use
of liquid resources and
financing                     (2,427)     (2,439)    (1,082)

Financing                          26       (704)    (1,472)
                             --------    --------   --------
Decrease in cash
in the period                 (2,401)     (3,143)    (2,554)
                             --------    --------   --------

Reconciliation of net cash flow to movement in net funds

                           Six Months  Six Months     Year to
                                   to          to          31
                         30 June 2000     30 June    December
                            Unaudited        1999        1999
                                 £000   Unaudited     Audited
                                             £000        £000
                                                                              


Decrease in cash
in the period                 (2,401)     (3,143)    (2,554)

Cash flow from movement
in loans and
hire-purchase contracts         1,357         716      1,484
                             --------    --------   --------
Change in net funds
from cash flows               (1,044)     (2,427)    (1,070)

New loan                      (1,522)           -          -
                             --------    --------   --------
Movement in net funds
in the period                 (2,566)     (2,427)    (1,070)

Net funds at beginning
of period                       1,581       2,651      2,651
                             --------    --------   --------
Net (debt)/funds at
end of period                   (985)         224      1,581
                             --------    --------   --------

Notes:

1.  The interim financial statements, which are neither audited nor reviewed
by the auditors, have been prepared on the basis of the accounting policies
set out in the company's 1999 statutory accounts.  The Group has adopted
FRS15.  In accordance with its transitional rules the option allowing for
annual revaluations of the and buildings is being adopted.

2.  The results for the year to 31 December 1999 include those of the
discontinued business, Manabo.  Manabo made a trading loss before taxation of
£998,000 during the year.  In addition, there was an exceptional loss of
£1,872,000 as a result of the write down of stock, plus a £980,000 loss on the
disposal of fixed assets, the latter of which is shown on the face of this
interim profit and loss account.


3.  Taxation  for the six months to 30 June 2000 has been shown at  the  rate
estimated to be applicable for the full year.

4.  The interim dividend of 5.25p per share (1999: 5.00p) will be paid on  27
October  2000  to  shareholders on the register on 6 October  2000.   The  ex-
dividend date will be 2 October 2000.

5.  The basic earnings per share figure for the six months ended 30 June 2000
is based on the profit after taxation of £2,915,000 (1999: £2,738,000) and
19,992,562 (1999: 20,003,124) ordinary shares, being the weighted average of
the number of shares in issue during the period.

The calculation of adjusted earnings per share for the year to 31 December
1999 is based on the profit after taxation, excluding the exceptional loss
made on the disposal of assets in a discontinued business.  This figure
provides a more meaningful comparison.

The calculation of diluted earnings per share is based on the profit after
taxation of £2,915,000 (1999: £2,738,000) and 20,072,692 (1999: 20,224,867)
ordinary shares, being the weighted average of the number of shares in issue
during the year, allowing for the dilutive effect of share options.

6.  The  results for the year to 31 December 1999 are an abridged version  of
the  company's full accounts which carry an unqualified auditors'  report  and
have been filed with the Registrar of Companies.

7.  The  interim report will be posted to shareholders.  Copies are available
from  the Secretary, Severfield-Rowen Plc, Dalton Airfield Industrial  Estate,
Dalton, Thirsk, North Yorkshire YO7 3JN.

8.  Reconciliation of movement of shareholders' funds
                                                        £000
At January 2000                                       30,150
Retained profit for the period                         1,867
Redemption of share capital                             (139)
                                                    --------
At 30 June 2000                                       31,878
                                                    --------

9.    Reconciliation of operating profit to operating cash flow
  

                          Six Months   Six Months     Year to
                                  to           to          31
                             30 June      30 June    December
                                2000         1999        1999
                                £000         £000        £000


     Operating profit           4,406       4,046      7,192
     
     Depreciation,
     amortisation
     and profit/loss
     on disposal
     of assets                    732         749      1,715
     
     Working capital increase (4,227)     (4,954)    (2,520)
                             --------    --------   --------
     Net cash flow from
     operating activities         911       (159)      6,387
                             --------    --------   --------