John Severs, the founder and group managing director of listed steel firm Severfield-Rowen, is to step down from the board.

Tom Haughey, a director, will be appointed chief executive after Severs leaves later this year. Peter Emerson, also a director, will become chief operations officer.

Severs will remain as a consultant for three years after his departure.

Severfield-Rowen announced its full-year results this week, reporting a pre-tax profit rise of 54% to £30m for the year to 31 December 2006.

Turnover rose 24% to £295m from £237m fuelled by strong demand for large structural steelwork projects.

The company’s core subsidiaries, Severfield-Reeve Structures, Watson Steel Structures, Rowen Structures and Atlas Ward Structures, all performed strongly.

The group is working on a series of projects, including the retail development at White City, west London, Heathrow Terminal 5, and the regeneration of Paradise Street in Liverpool.

Peter Levine, chairman, said: “Severfield-Rowen had a strong year and prospects are excellent. We have started the year with trading ahead of expectations and we are confident of further success in 2007.”

The group announced a 54.1% increase in full dividend for the year to 57p a share.