Severfield-Rowen Plc (the “Group”), the UK market leading structural steel group, issues this further update on its trading position and the findings of the Board’s review of the Group’s contract base, referred to in the announcement on 23 January 2013.
The Board’s review (the “Review”) addressed 70 of the Group’s contracts representing c. 90% of the Group’s contracts by value, with a particular focus on the larger and more complex projects.
The Review involved all key management responsible for the execution and performance of each contract.
Detailed financial information on each contract was analysed, including revenue and cost position to date, forecasts to completion and the underlying progress of that contract.
The inherent complexity and risk of each contract was also considered in determining the final financial outcome.
Recently won contracts, at the initial stages of execution, have been subject to additional scrutiny, involving cross Group peer reviews.