Interim Management Statement
Severfield-Rowen Plc, the market leading structural steel group, issues this Interim Management Statement covering the period to 15 August 2013.
The Group’s overall trading performance for the year to date remains in line with management expectations. The Group’s borrowings are also in line with expectations following the completion of the Rights Issue in April.
The reorganisation of the Group’s Severfield-Watson Structures business is now substantially complete. The Group has successfully achieved the anticipated savings and made good progress with the associated operational improvement programme.
The UK order book of £178m is slightly lower than that previously reported, but it remains at a level that management is comfortable with, given the current state of the UK market, the capacity reductions being implemented within the business, and the Group’s more selective approach to securing work. There are early signs that the market may be marginally improving into 2014.
JSW Severfield Structures Ltd (India)
The primary focus in India continues to be on the commercial development of the business and conversion of the market from concrete to steel. While progress is encouraging, the order book level of £34.8m is not yet sufficient to maintain production at a break-even level. The factory expansion is almost complete and the increased capability will play an important role in the continuing business development process.
While short term challenges remain, the Group is making encouraging progress with its operational improvements, supported by a strong balance sheet, and is maintaining its market position. Management is confident that the Group is progressing in line with its expectations and will be well placed to benefit from any recovery in the UK construction market.