Pre-tax profit at structural steel specialist is down 5% to £49.8m while operating margins rose slightly
Structural steel specialist Severfield-Rowen saw pre-tax profits hit as revenues fell 11% to £349.4m in the last year, it said today.
Reporting preliminary results, the firm said underlying pre-tax profits were down by 5% to £49.8m, while operating margins actually rose slightly to 14.6%.
The business also said its planned new steel plant in India will be fully working by the end of the year, employing 270 people, and will be ready to take its first orders by May this year.
However, the firm warned that the strong results, based on a large amount of Olympics work and large contracts for the Shard and Heron Tower, would not be sustainable in the long term.
General trading conditions remain poor, with pressure from reduced UK demand and lower pricing in all markets
Tom Haughey, chief executive officer
The firm said it had cut staff by 15% over the year, and “significantly” cut salaries across the business in order to generate savings of £10m a year. It has a forward order book of £219m.
Tom Haughey, chief executive officer, said the company was pleased with the results, achieved despite a very difficult UK construction climate.
“General trading conditions remain poor, with pressure from reduced UK demand and lower pricing in all markets,” he said.
“The very creditable margin performance in 2009 will, as previously stated, be unsustainable in 2010. We remain vigilant and will maintain our focus on costs, capacity deployment and client satisfaction in our efforts to enhance our increased UK market share.”