Structural steel group reports preliminary pre-tax profit of £6.8m, down from £11.1m in 2010
Severfield-Rowen has reported “steady” revenue of £267.8m for 2011 - a marginal increase of £1.1m on the previous year’s figures - as its pre-tax profit dipped.
The structural steelmaker’s preliminary results for the year to 31 December 2011 revealed pre-tax profits of £6.8m, down from £11.1m in 2010.
Chief executive Tom Haughey said the results were in-line with overall market expectations, underpinned by a strong UK performance in a “subdued domestic market” at a time when operations in India continued to improve.
“The UK economy remains lacklustre and the duration of the downturn is having a significant impact upon the durability of our industry competitors, several of whom exited the sector in 2011,” he said.
“The group’s market share in its key sectors continues to grow with a post-Olympic order book of £221m. The order book composition is largely as forecast from commercial offices, industrial, warehousing and energy/power sectors.”
Haughey said it was significant that JSW Severfield Structures Ltd in India continued to increase its market presence and operational outputs and was expected to contribute positively to the firm’s revenue in 2012.
“The Indian order book now stands at £43m, covering almost all of our production plans for 2012 and is strong in terms of quality and importantly product mix,” he said.
He added that a £61m reduction in the company’s order book since November was largely the result of a single contract cancellation that had failed to conclude its project financing.
Haughey said the pipeline of potential orders continued to grow, with some £80m of good opportunities identified.