Interim Results

Severfield-Rowen PLC
25 September 2007

25 September 2007



                              SEVERFIELD-ROWEN Plc

                             2007 Half Year Results

                            RECORD HALF YEAR RESULTS



Severfield-Rowen Plc, the market leading structural steel group, announces its
half year results to 30 June 2007.


                                                            2007              2006           
                                                       Half year         Half year           Change
Revenue                                                 £137.56m          £130.77m              +5%
Profit from operations                                   £15.16m          £ 11.39m             +33%
Profit before tax                                        £15.88m           £11.81m             +34%
Basic earnings per share                                  53.74p            39.95p             +35%
Dividend per share                                        27.00p            20.00p             +35%





Highlights
     
•    Operating margin increased to 11.0% (2006: 8.7%)

•    Cash balance of £28.8m (2006: £27.10m)

•    Proposed acquisition of Fisher Engineering announced post period end for a 
     consideration of £90m

•    Record order book totalling in excess of £300m, including Fisher 
     Engineering. (2006: £218m)

•    All core businesses currently performing in line with management's
     expectations



Commenting, Peter Levine, Chairman, said:



'Severfield-Rowen continues to make significant and sustained progress and
delivered yet another set of record half year results.  Profits, earnings per
share, cash balances and dividends all increased significantly and we are
particularly pleased with achieving a double digit operating margin.



'This progress is reflected in current trading being in line with management's
expectations.  Our record order book gives us excellent visibility and we
continue to operate in buoyant markets which are experiencing high demand for
large scale projects.  The integration of Fisher Engineering into the Group will
enhance our geographical exposure, giving us a substantial foothold in the Irish
market.



'With robust demand for the Group's products and services continuing we are
confident in the Group's prospects for the second half and beyond.'


Enquiries

Severfield-Rowen Plc
Peter Levine, Chairman                               [phone]
Tom Haughey, CEO                                     [phone]
Peter Davison, Finance Director                      [phone]

Financial Dynamics
Susanne Yule/Richard Mountain                        [phone]




INTERIM STATEMENT 2007



INTRODUCTION



Severfield-Rowen continues to make significant and sustained progress and
delivered yet another set of record half year results.  Revenue increased 5%,
and profit before tax grew 34%.   Earnings per share increased 35% to 53.74p and
the Group's cash balance remained significant at £28.8m at the period end.



The operating margin continued to progress, rising from 8.7% in 2006 to 11.0%
and the net margin was also substantially ahead at 11.6% (2006: 9.0%).



With every Severfield-Rowen company contributing to profits and producing
results ahead of our expectations at the start of the year, the strong financial
and market leading position of the Group was maintained through the first half.



Severfield-Rowen is an outstanding performer in the world structural steel
construction industry and the proposed acquisition of Fisher Engineering, with
its strong client base, robust order book and focus on high quality business,
will enhance further the Group's position.



FINANCIALS



Revenue in the period was £137.56m (2006: £130.77m) and operating profit was
£15.16m (2006: £11.39m), producing an increased operating margin of 11% (2006:
8.7%).



Profit before tax increased 34% to £15.88m (2006: £11.85m) producing a net
margin of 11.6% (2006: 9.0%).  After a tax charge of £4.92m (2006: £3.66m)
profit after tax increased 35% to £10.97m (2006: £8.15m).



Basic earnings per share increased 35% to 53.74p (2006: 39.95p).



During the first six months of the year capital expenditure amounted to
approximately £3.3m (2006: £4.6m).



The period ended with the Group having a cash balance of £28.8m (2006: £27.1m)
and with no borrowings this represented a net funds surplus.  Cash inflow from
operating activities was £4.78m (2006: inflow £8.73m).  Significant cash
outflows in the period included dividends paid of £7.55m, corporation tax paid
of £4.63m and net expenditure on assets of £2.56m.



Dividend



Reflecting the Group's performance in the first half, its strong financial
position and the Directors' confidence in the future prospects for the Group,
the Board is pleased to recommend a significant increase in the interim dividend
of 35% to a record 27.0p per share (2006: 20.0p). This maintains the Board's
policy of having the dividend covered approximately 2.0 times by earnings at the
interim stage (2006: 2.0 times).  The interim dividend will be paid on 26
October 2007 to shareholders on the register on 5 October 2007.



BOARD CHANGES & EMPLOYEES



The first half saw the departure of John Severs, the former Group Managing
Director and one of its founders.  John left a strong management team behind
him, led by Tom Haughey, our new Chief Executive, ably supported by Peter
Emerson, Chief Operations Officer, and the other members of the Executive Board.



The Group continues to take considerable strides forward and credit for this is
down to our tremendous workforce of whom the directors are very proud.




OPERATIONS



Group Overview



The principal business of the Group is carried out by its four main operating
companies: Severfield-Reeve Structures, Watson Steel Structures, Rowen
Structures and Atlas Ward Structures.



The Group is the clear market leader in its sector and its production
facilities, technology and broad range of structural steel services are
unparalleled in the industry.  Sustained investment preserves the Group's
advantage in the industry.  Margins remain in the forefront of our attention and
have shown significant improvement in the first six months of 2007.



The core businesses of the Group, each trading profitably and in line with
management's expectations, reflect a balanced and comprehensive approach to the
varied demands of the structural steel market:

•    Severfield-Reeve Structures, the single largest production unit in the UK 
     in terms of capacity and an industry leader in efficiency and use of 
     technology;

•    Watson Steel Structures, a world leader in specialist steel work used
     in stadia and bridges;

•    Rowen Structures, an expert in complex projects such as airports and
     office blocks;

•    Atlas Ward Structures, reinvigorated through membership of the Group
     has in the short time since its acquisition in 2005 attained leadership of 
     the shed and portal frame market.


Each of the four companies above are ably supported by Steelcraft Erection
Services, a wholly owned subsidiary of Severfield-Rowen, which is responsible
for the on site erection of the fabricated steel.


The broad range of capabilities outlined above, together with the Group's
financial strength and excellence of its workforce, enable Severfield-Rowen to
benefit from, and be resilient to, the ever changing and evolving market place.



Contracts



Projects carried out by the Group in the first six months of the year include:
     
•    Redevelopment of Wimbledon Centre Court

•    Terminal extension at Stansted airport

•    Ongoing retail development opposite BBC Television Centre, White City, 
     London

•    First ever inner city IKEA store on Queen Victoria Road, Coventry

•    Extension to the Shires shopping centre in Leicester

•    Retail, leisure and residential centre Eagles Meadow, Wrexham

•    Retail development at the Broadmead shopping complex in Bristol

•    New 1200 bed hospital development at Queen Elizabeth Medical Centre,
     Edgbaston, Birmingham

•    Mixed use retail and residential development at Livingston near Edinburgh

•    Office development in Piccadilly, Manchester

•    Silken Hotel and apartments at the east end of the Strand, London

•    Central London office development at Holborn Circus

•    UBS  sponsored  academy in Hackney

•    The regeneration of Paradise Street, Liverpool

•    Waste to energy plant at Colnbrook near Heathrow

•    Extension to ship building facility for Vosper Thornicroft in Portsmouth

•    Tesco distribution centres  in Livingston, Edinburgh and Goole,
     Humberside

•    Regional distribution centre in Doncaster for Asda

•    Regional distribution centre in Northampton for Sainsbury's

•    The third distribution facility in Wellingborough for ProLogis



OUTLOOK



The Group continues to make significant progress, with current trading in line
with management's expectations.



Our record order book gives us excellent visibility and we continue to operate
in buoyant markets which are experiencing high demand for large scale projects.
The integration of Fisher Engineering into the Group will enhance our
geographical exposure, giving us a strong foothold in the Irish market.



With robust demand for the Group's products and services continuing we are
confident in the Group's prospects for the second half and beyond.


PETER LEVINE
CHAIRMAN
25 September 2007



Consolidated Income Statement

                                                  Six months ended    Six months ended          Year ended
                                                      30 June 2007        30 June 2006    31 December 2006
                                                       (unaudited)         (unaudited)           (audited)
                                                              £000                £000                £000

Revenue                                                    137,564             130,766             295,084
Cost of sales                                             (120,028)           (116,989)           (261,148)
Gross profit                                                17,536              13,777              33,936

Other operating income                                          30                  17                  79
Distribution costs                                           (587)               (590)               (877)
Administrative expenses                                    (1,836)             (1,821)             (4,030)
Share of results of associates                                  16                   5                  10
Profit from operations                                      15,159              11,388              29,118

Investment income                                              724                 498               1,250
Finance costs                                                    -                (77)                (82)
Profit before tax                                           15,883              11,809              30,286

Tax                                                        (4,918)             (3,659)             (9,365)
Profit for the period                                       10,965               8,150              20,921

Earnings per share:
Basic                                                       53.74p              39.95p             102.54p
Diluted                                                     53.74p              39.95p             102.54p



Consolidated Statement of Recognised Income and Expense


                                                  Six months ended    Six months ended          Year ended
                                                      30 June 2007        30 June 2006    31 December 2006
                                                       (unaudited)         (unaudited)           (audited)
                                                              £000                £000                £000

Actuarial loss on defined benefit pension
scheme                                                           -                   -             (1,169)

Tax on items taken directly to equity                            -                   -                 351
Net expense recognised directly in equity                        -                   -               (818)

Profit for the period from continuing
operations                                                  10,965               8,150              20,921
Total recognised income and expense for the
period attributable to equity shareholders                  10,965               8,150              20,103


Consolidated Balance Sheet

                                                                At                  At                  At
                                                      30 June 2007        30 June 2006    31 December 2006
                                                       (unaudited)         (unaudited)           (audited)
                                                              £000                £000                £000
ASSETS

Non-current assets
     Goodwill                                                6,732               6,732               6,732
     Other intangible assets                                 1,840               1,308               1,608
     Property, plant and equipment                          44,567              39,098              43,602
     Interests in associates                                    62                  41                  46
                                                            53,201              47,179              51,988
Current assets
     Inventories                                            11,481               2,945               3,333
     Trade and other receivables                            52,070              46,519              46,786
     Cash and cash equivalents                              28,795              27,100              38,304
                                                            92,346              76,564              88,423

Total assets                                               145,547             123,743             140,411

LIABILITIES

Current liabilities
     Trade and other payables                               58,460              53,516              56,966
     Tax liabilities                                         6,417               4,319               6,125
     Obligations under finance leases                            -                 228                  66
                                                            64,877              58,063              63,157
Non-current liabilities
     Retirement benefit obligations                          7,287               6,384               7,287
     Deferred tax liabilities                                  742                 943                 742
     Provisions                                              3,000                   -               3,000
                                                            11,029               7,327              11,029

Total liabilities                                           75,906              65,390              74,186

NET ASSETS                                                  69,641              58,353              66,225

EQUITY

Share capital                                                2,040               2,040               2,040
Share premium                                                9,770               9,770               9,770
Other reserves                                                 139                 139                 139
Retained earnings                                           57,692              46,404              54,276
TOTAL EQUITY                                                69,641              58,353              66,225


Consolidated Cash Flow

                                                  Six months ended    Six months ended          Year ended
                                                      30 June 2007        30 June 2006    31 December 2006
                                                       (unaudited)         (unaudited)           (audited)
                                                              £000                £000                £000

Cash flows from operating activities
Cash generated from operations                               4,782               8,732              35,488
Interest paid                                                    -                (77)                (82)
Tax paid                                                   (4,626)             (2,591)             (6,341)
Net cash from operating activities                             156               6,064              29,065


Cash flows from investing activities
Proceeds from sale of property, plant and
equipment                                                      748                 563                 920
Interest received                                              738                 465               1,239
Purchases of property, plant and equipment                 (3,304)             (4,625)            (13,010)
Purchases of intangible fixed assets                         (232)               (300)               (600)
Net cash used in investing activities                      (2,050)             (3,897)            (11,451)


Cash flows from financing activities
Payment of finance lease liabilities                          (66)               (201)               (363)
Dividends paid                                             (7,549)             (4,998)             (9,079)
Net cash used in financing activities                      (7,615)             (5,199)             (9,442)


Net (decrease)/increase in cash and cash
equivalents                                                (9,509)             (3,032)               8,172
Cash and cash equivalents at beginning of
period                                                      38,304              30,132              30,132
Cash and cash equivalents at end of period                  28,795              27,100              38,304



Notes to Interim Report

     
1)   Basis of preparation



The interim financial information has been prepared in accordance with
International Financial Reporting Standards ('IFRS') as adopted for use in the
European Union and in accordance with the accounting policies included in the
Company's Annual Report for the year ended 31 December 2006, which have been
applied consistently throughout the current and preceding periods.

The interim financial information does not constitute statutory accounts within
the meaning of Section 240 of the Companies Act 1985.  The interim results to 30
June 2007 and 2006 are neither audited nor reviewed by the auditors.  The
financial information of the full preceding year is based on the statutory
accounts for the financial year ended 31 December 2006.  Those accounts, upon
which the auditors issued an unqualified opinion, have been delivered to the
Registrar of Companies.



2)   Taxation


The income tax expense reflects the estimated effective rate on profit before
taxation for the Group for the year ending 31 December 2007.

The Finance Act 2007 includes provision for a reduction in the rate of UK
corporation tax from 30% to 28% with effect from 1 April 2008.  At 30 June 2007
the rate reduction was substantively enacted.  The effect of this change on the
tax charge for the six months ended 30 June 2007 is not considered to be
significant.

Although amendments to the industrial buildings allowance regime were also
proposed in the 2007 budget announcement, these amendments were not
substantively enacted at 30 June 2007 and accordingly have not been reflected in
the Group's results for the six months ended 30 June 2007.  The directors have
estimated that, had these amendments been reflected  in the Group's results for
the six months ended 30 June 2007 in respect of existing industrial buildings
held by the Group, the effect would be to increase the deferred tax liability
held in the balance sheet by approximately £3 million.


3)   Dividends payable to equity shareholders


                                           Six months ended    Six months ended          Year ended
                                               30 June 2007        30 June 2006    31 December 2006
                                                       £000                £000                £000

Ordinary dividend paid                                7,549               4,998               9,079
                                                     ______              ______              ______


In addition to the above, an interim dividend of 27.00p per ordinary share
(2006: 20.00p) will be paid on 26 October 2007 to shareholders on the register
on 5 October 2007.  The ex-dividend date will be 3 October 2007.

     
4)   Earnings per share


Earnings per share is calculated as follows:

                                              Six months ended    Six months ended          Year ended
                                                  30 June 2007        30 June 2006    31 December 2006 
                                                          £000                £000                £000

Profit for the period                                   10,965               8,150              20,921
                                                        ______              ______              ______

Weighted average of number of shares in             20,401,969          20,401,969          20,401,969
issue

Weighted average of number of shares in             20,401,969          20,401,969          20,401,969
issue, allowing for

dilutive effect of share options

Basic earnings per share                                53.74p              39.95p             102.54p

Diluted earnings per share                              53.74p              39.95p             102.54p

     
5)   Reconciliation of movement in total equity

                                                            At                  At                  At
                                                  30 June 2007        30 June 2006    31 December 2006
                                                          £000                £000                £000

Opening total equity                                    66,225              55,201              55,201
Profit for the period                                   10,965               8,150              20,921
Dividends paid in period                               (7,549)             (4,998)             (9,079)
Actuarial loss on defined benefit pension
scheme                                                       -                   -             (1,169)
Deferred income taxes on                                     -                   -                 351
pension benefit
Closing total equity                                    69,641              58,353              66,225

     
6)   Analysis of net funds
                                                           At                   At                   At
                                                 30 June 2007         30 June 2006     31 December 2006
                                                         £000                 £000                 £000

Cash in hand                                           28,795               27,100               38,304
Finance leases                                              -                (228)                 (66)
Closing net funds                                      28,795               26,872               38,238

     
7)   Reconciliations of group profit from operations to cash generated from 
     operations

                                             Six months ended     Six months ended           Year ended
                                                 30 June 2007         30 June 2006     31 December 2006
                                                         £000                 £000                 £000

Profit from operations                                 15,159               11,388               29,118
Adjustments for:
Depreciation of property, plant and                     1,687                1,668                4,238
equipment
(Profit)/loss on disposal of property,                   (96)                   80                  212
plant and equipment
Decrease in pension                                         -                    -                (266)
Share of results of associated companies                 (16)                  (5)                 (10)
Increase in provisions                                      -                    -                3,000

Operating cash flows before changes in                 16,734               13,131               36,292
working capital


(Increase)/decrease in inventories                    (8,148)                4,373                4,807
Increase in receivables                               (5,298)             (14,067)             (14,356)
Increase in payables                                    1,494                5,295                8,745
Cash generated from operations                          4,782                8,732               35,488





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