Interim Results

Severfield-Rowen PLC
25 September 2001



25 September 2001

                            SEVERFIELD-ROWEN PLC

                           2001 Half Year Results

Severfield-Rowen plc, the structural steel group, announces its half year
results to 30 June 2001.


Overview

*        Turnover £59.3m (2000: £61.6m)

*        Operating Group margins of 6.7%

*        Group profit before tax of £4.0m (2000: £4.2m)

*        Basic earnings per share 13.98p (2000: 14.58p)

*        Interim dividend held at 5.25p, reflecting Board's confidence in
         current trading

*        Positive cash balance of £3.31m as at 30 June 2001

*        Order book level maintained

*        Plate Line at Dalton now operating

*        Joint venture with Corus, W J Leigh and Atlas Ward announced May 2001



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

'This result confirms our market leadership position, we have produced a
highly commendable performance against the background of very challenging
market conditions.  Our previous investments, notably in the sixth line, have
proved highly successful.  The Group strategy, in the UK and overseas, is
focused on the medium to long term, with the prudent and optimum utilisation
of our significant financial resources underpinning our strategy.  Whilst our
Group is not isolated from any further deterioration in general economic
conditions, our core business is currently fabricating steelwork at record
levels and enquiry levels for significant projects extend into 2002.  In this
regard the Directors consider the Group has very good future prospects. '



Enquiries

Severfield-Rowen plc                   020 7269 7291 - 25 September 2001
Peter Levine, Chairman                 Thereafter:  01132 469 993
Peter Davison, Finance Director        Thereafter:  01845 577 896

Financial Dynamics
Richard Mountain                       020 7269 7291



                            INTERIM STATEMENT 2001

INTRODUCTION

The Group has produced a satisfactory performance for the first half of 2001.
Whilst the impact of the general economic environment is impossible to ignore,
the Group's present projections show a result for the year broadly in line
with budget.

During the first six months the Group continued to demonstrate its increasing
market leadership and reputation.  The completion of the sale and leaseback of
our Dalton site has reinforced our already strong financial position.  This
has given us unsurpassed financial credibility and flexibility within our
industry which is particularly useful in times of a general economic slowdown.

Margins for the full year are expected to be in line with budget, but in the
first six months they were adversely affected by us fabricating a more varied
and complicated mix of work than we would normally expect.

Order levels remain robust and continue at very good levels despite
challenging market conditions.  Our output remains principally directed at the
UK market, although during the period work continued on three power stations
for Bechtel in Turkey, as well as commencing work on a financial centre in
Dominica.

During the first half of the year we completed our new plate line at Dalton,
Line 6.  This produces beams and other products out of plate using the very
latest technology.  The demand for the plated products produced through this
line is very encouraging.  In connection with this, in May 2001 we entered
into a joint venture with Corus, W J Leigh, a leading fire retardant paint
supplier and Atlas Ward, another steel fabricator, under which an established
and proven cellular beam equivalent, made out of plate and marketed under the
Fabsec trademark, was acquired for use by the Group.  Manufacturing of the
Fabsec beam through the new line has already commenced.

We are now able to produce our own cellular beams out of plate in a much more
cost efficient, flexible and significantly faster way than any other UK or
world-wide source.  Demand from our clients for this product is extremely
encouraging.  Further details of the new line are below.

Another new innovation is the development of our patent protected fire
retardant beam, conceived by ourselves, which is also now included within the
joint venture.  Testing of this fire beam is going very well and production is
expected to commence next year.


Finance

Turnover in the period was £59.34 million (2000: £61.63 million) producing an
operating profit of £4.0 million (2000: £4.41 million).

Despite the continued pressure on prices, Group margins at the operating level
only reduced to 6.7%, compared to 7.1% for the first half of 2000.

Profit before tax was £4.08 million (2000: £4.21 million) after net interest
receivable of £8,000 (2000: interest payable £197,000).  Assuming a tax charge
of 31 % (2000: 30.75%) basic earnings per share were 13.98 pence (2000: 14.58
pence).

During the first six months of the year capital expenditure amounted to £5
million, primarily for the building of the new plate line at Dalton.  Despite
this capital expenditure and a significant amount of cash being tied up in
certain large contracts at 30 June 2001 we had a positive cash balance of 
£3.31 million.

Borrowings primarily representing amounts due on hire purchase contracts
amounted to £2.10 million leaving the Group with a net funds surplus of £1.21
million and, therefore, no gearing.


Share Buy Back

Whilst the Company has the power to buy back its own shares, none were
purchased in the reporting period.  The Directors continue to monitor the
situation and will exercise such power as and when it is appropriate.


Dividend

In spite of the uncertainty surrounding the general economic outlook,  the
Board is confident with the Company's current positive trading position and
therefore maintains the interim dividend at 5.25 pence per share (2000: 5.25
pence) which is covered 2.66 times by earnings.  The interim dividend will be
paid on 26 October 2001 to shareholders on the register on 12 October 2001.


Structural Steel

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

The Group remains the market leader in the industry with unsurpassed
facilities and efficiency.  Whilst margins reduced in the first period
principally due to a more varied mix of work, they remain significantly above
average for the UK steelwork industry.

As referred to above, the plate line at Dalton was completed and began
operation in May 2001.  This was complemented at the same time by the
aforementioned joint venture with Corus, W S Leigh and Atlas Ward.  This line
significantly extends the Group's range of products and services it can supply
to clients.  Through the joint venture the Group has access to innovative,
user-friendly software which enables consulting engineers and architects to
design the Fabsec beam into their projects in a significantly more effective
way.

With some justification the Directors look forward with confidence to a good
contribution to profit in 2002 from this new area of our business.

Projects carried out in the first six months demonstrate the diversity of our
product and client base.  These included:


-   Tower Place office development in the City of London
-   Refurbishment of HM Treasury in Whitehall
-   New Process facility for Huntsman Tioxide on Teesside
-   Major new  retail outlet for Ikea in Glasgow
-   High rise office/residential block in Cardiff
-   Distribution depots  for Sainsbury
-   New car park for BAA at Southampton Airport
-   Leisure and residential development at Broadway Plaza, Birmingham
-   New stadium for Darlington Football Club
-   Distribution warehouse for LM Solutions in Hatfield
-   Mixed development in Edinburgh for Pillar Properties
-   Several projects for BAA at Heathrow and Gatwick


Enquiry levels, extending to the end of the year and beyond, are encouraging.
The Group continues to be engaged in contracts of substantial size and
complexity, where the need for fast-track fabrication and erection on-site is
very important.  Our own erection company, Steelcraft Erection Services Ltd
continues to play an important role in this regard.


Outlook

I am pleased to report that for yet another year our core business is
currently fabricating steelwork at record levels.  Order books are strong and
enquiry levels for significant projects extend into 2002.  However our Group
will not be isolated from a downturn in general economic conditions.

Margin levels remain at a commendable level compared to the rest of our
industry and, with the development of the new plate line, the Group remains at
the forefront of efficiency and technological innovation in it's industry.

The Group's strategy, both in the UK and overseas, is focused on the medium to
long term, with the prudent and optimum utilisation of our significant
financial resources underpinning our strategy.  In this regard the Directors
consider the Group has very good future prospects.

The Directors look forward to another year of sustained profitability and
progress.



                                                                  PETER LEVINE
                                                                      Chairman
                                                             25 September 2001


                                         Consolidated Profit and Loss Account

                                         Six Months   Six Months        Year to
                                                 to           to    31 December
                                       30 June 2001 30 June 2000           2000
                                          Unaudited    Unaudited        Audited
                                               £000         £000           £000

Turnover                                     59,337       61,633        128,930
                                           --------     --------       --------
Operating profit                              4,000        4,406         10,565

Net interest                                      8        (197)          (241)
                                           --------     --------       --------
Profit on ordinary activities before
taxation                                      4,008        4,209         10,324

Taxation on profit on ordinary              (1,242)      (1,294)        (3,895)
activities
                                           --------     --------       --------
Profit on ordinary activities after
taxation for the period                       2,766        2,915          6,429

Dividends payable to equity                 (1,036)      (1,048)        (2,748)
shareholders
                                           --------     --------       --------
Profit retained, transferred to               1,730        1,867          3,681
reserves
                                           --------     --------       --------

Basic earnings per share                     13.98p       14.58p         32.32p
Adjustment for exceptional items                  -            -          3.37p
                                           --------     --------       --------

Adjusted earnings per share                  13.98p       14.58p         35.69p
                                           --------     --------       --------

Diluted earnings per share                   13.89p       14.52p         32.22p
                                           --------     --------       --------

Dividends per share                           5.25p        5.25p         14.00p



                                              Consolidated Balance Sheet

                                         At 30 June  At 30 June  At 31 December
                                               2001        2000            2000
                                          Unaudited   Unaudited         Audited
                                               £000        £000            £000

Fixed Assets:
     Tangible assets                         16,321      25,460          26,432
     Investment properties                       88         330              88
     Investments                                464         464             464
                                           --------    --------        --------
                                             16,873      26,254          26,984
                                           --------    --------        --------
Current Assets:
     Stocks                                   6,392       4,442           4,670
     Debtors                                 43,576      32,832          28,739
     Cash at bank and in hand                 3,306       2,537           5,618
                                           --------    --------        --------
                                             53,274      39,811          39,027

Current Liabilities:
     Creditors due within one year         (32,528)    (31,844)        (29,177)
                                           --------    --------        --------
Net current assets                           20,746       7,967           9,850
                                           --------    --------        --------
Total assets less current liabilities        37,619      34,221          36,834

Creditors due after more than one year      (1,198)       (944)         (1,554)
Provision for liabilities and charges       (2,185)     (1,399)         (2,185)
                                           --------    --------        --------
                                             34,236      31,878          33,095
                                           --------    --------        --------
Capital and Reserves:
     Called up share capital                  1,979       1,996           1,978
     Share premium account                    8,537       8,393           8,527
     Other reserves                             874       1,723           1,474
     Profit and loss account                 22,846      19,766          21,116
                                           --------    --------        --------
                                             34,236      31,878          33,095
                                           --------    --------        --------




                                          Consolidated Cash Flow Statement

                                  Six Months to    Six Months to       Year to  
                                   30 June 2001     30 June 2000   31 December  
                                                                          2000
                                      Unaudited        Unaudited       Audited  
                                           £000             £000          £000
Net cash flow from
operating activities                    (6,846)               911         8,657

Returns on investments and
servicing
of finance                                    6             (183)         (276)

Taxation                                (1,971)             (722)       (1,477)

Capital expenditure and financial
investment                                8,713           (3,197)       (3,735)

Acquisitions and disposals                   86             2,161         2,490

Equity dividends paid                   (1,732)           (1,397)       (2,430)
                                       --------          --------      --------
Cash (outflow)/inflow before use of
liquid resources and financing          (1,744)           (2,427)         3,229

Financing                                 (568)                26       (2,549)
                                       --------          --------      --------
(Decrease)/increase in cash in the      (2,312)           (2,401)           680
period
                                       --------          --------      --------


                       Reconciliation of net cash flow to movement in net funds

                                         Six Months    Six Months       Year  to
                                                 to            to    31 December
                                       30 June 2001  30 June 2000           2000
                                          Unaudited    Unaudited        Audited
                                               £000         £000           £000

(Decrease)/increase in cash in the          (2,312)      (2,401)            680
period

Cash flow from movement in loans and
hire-purchase contracts                         579        1,357          2,064
                                           --------     --------       --------
Change in net funds from cash flows         (1,733)      (1,044)          2,744

New loan                                          -      (1,522)              -

New hire-purchase contracts                       -            -        (1,385)
                                           --------     --------       --------
Movement in net funds in the period         (1,733)      (2,566)          1,359

Net funds at beginning of period              2,940        1,581          1,581
                                           --------     --------       --------
Net funds/(debt) at end of period             1,207        (985)          2,940
                                           --------     --------       --------


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 2000 statutory accounts.

2)     Taxation for the six months to 30 June 2001 has been shown
at the rate estimated to be applicable for the full year.

3)     The interim dividend of 5.25p per share (2000: 5.25p) will
be paid on 26 October 2001 to shareholders on the register on 12 October 2001.
The ex-dividend date will be 10 October 2001.

4)     The basic earnings per share figure for the six months
ended 30 June 2001 is based on the profit after taxation of £2,766,000 (2000:
£2,915,000) and 19,784,811 (2000: 19,992,562) 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
2000 is based on the profit after taxation, excluding the exceptional tax
charge caused by the clawback of industrial buildings allowances by the Inland
Revenue as a result of the sale and leaseback of the Dalton facility.  This
figure provides a more meaningful comparison.

The calculation of diluted earnings per share is based on the profit after
taxation of £2,766,000 (2000: £2,915,000) and 19,916,978 (2000: 20,072,692)
ordinary shares, being the weighted average of the number of shares in issue
during the year, allowing for the dilutive effect of share options.


5)     The results for the year to 31 December 2000 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.


6)     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.


7)     Reconciliation of movement of shareholders' funds
                                                                           £000
At January 2001                                                          33,095
Retained profit for the period                                            1,730
Issue of share capital under share option scheme                             11
Movement on revaluation reserve                                           (600)
                                                                       --------
At 30 June 2001                                                          34,236
                                                                       --------

8)     Reconciliation of operating profit to operating  cash flow
                                                              
                                 Six Months to  Six Months to           Year to
                                  30 June 2001   30 June 2000  31 December 2000
                                          £000           £000              £000

Operating profit                         4,000          4,406            10,565
Depreciation, amortisation and
profit/loss on disposal of assets          798            732             1,659
Working capital increase              (11,644)        (4,227)           (3,567)
                                      --------       --------          --------
Net cash flow from
operating activities                   (6,846)           911             8,657
                                      --------       --------          --------