John Dodds joins Severfield-Rowen as the firm predicts more steel companies hitting the wall.
Former Kier boss John Dodds is to join the board of Severfield-Rowen, the steel firm revealed in its interim results today.
John Dodds, former chief executive of the Kier group, retired from the contractor earlier this year and had said he is still considering his options. He will join the Severfield-Rowen as a non-executive director on 1 October. He is also believed to be seeking opportunities outside of the construction industry.
Severfield-Rowen’s results for the first half of 2010 revealed that revenue had fallen by over a third, from £200m in 2009 to £126.7m this year. Its pre-tax profit also sank, from £24.6m in the same period last year to £8.2m this year. The firm warned that worse could be ahead due to the Uk economy recovering more slowly than predicted.
Tom Haughey, chief executive of Severfield-Rowen, said: “The UK structural steelwork sector is now likely to see substantial rationalisation in the next 12 months.”
The company said it had cut its operations by a fifth since the beginning of the year. Margins have dived from 12.3% to 6.5, while the manufacturer’s order book is slightly down, from £256m to £244m.
However, the company’s net debt improved, shrinking from £12m to £8.2m.