Interim Management Statement
Severfield plc, the market leading structural steel group, issues its Interim Management Statement covering the period to 11th August 2014.
The Group’s performance and underlying financial position are satisfactory and together with a solid order book the Group remains on track for this financial year. The Group has also benefited from the sale of its investment property in June for £3.9m, which was in line with book value.
The UK order book of £171m remains solid and the business continues to show improved stability following the reorganisation in the last financial year. Management’s view of the market is unchanged, with continuing signs of improvement, but it remains likely to be later in the financial year before there is any notable impact on the size or mix of the order book.
JSW Severfield Structures Ltd (India)
The business is showing the intended improvement in operational performance for the year to date, with cost savings and improvements in production output both being evident. The order book stands at £34m. The business development programme and improving the conversion of opportunities still remain priorities.
The UK business continues to progress well and India is showing encouraging operational improvements with market development remaining an area of high focus. Overall, the Group continues to be ideally positioned for recovery in the UK construction market with its good market position and strong balance sheet.