Ill health forces Severfield chief to take leave

The Thirsk-based group said Mr Lawson has taken a temporary leave of absence due to physical ill health. Mr Dodds will work with Alan Dunsmore, who has agreed to assume the role of chief executive on a temporary basis. Adam Semple, who is currently the group’s financial controller, will temporarily take on the responsibilities of finance director.

Mr Dodds said: “I will work closely with Alan and the wider team during this time and in the meanwhile, on behalf of the board and everyone at Severfield, I would like to wish Ian a full and speedy recovery.”

In a separate trading update the group said results for the year to March 31 will be ahead​ of expectations.​

The firm said that trading during the second half of the financial year has been strong. It said the UK order book remains solid at £267m and the pipeline of potential projects remains steady.

“The UK business is well-placed to deliver further growth towards our objective of doubling profits by 2020,” said Mr Dodds.

“The Indian business continues to perform in a stable manner with the economic backdrop continuing to show signs of improvement following the government’s demonetisation programme.”

Analyst Greg Poulton at N+1 Singer said: “Severfield’s trading update highlights that trading during the second half was strong and the group now expects results to be ahead of expectations.”

The broker said it expects to increase its pre-tax profit forecasts for the year by around 9 per cent to £19.5m.

“We are disappointed to see that Ian Lawson has taken a temporary leave of absence due to physical ill health,” said Mr Poulton.

“John Dodds will step up to executive chairman on an interim basis and Alan Dunsmore has agreed to assume the role of CEO on a similar basis. This should ensure the continuity of the business whilst Ian is recovering. The outlook for Severfield remains positive.”

Analysts at Jefferies said in a note: “Severfield has issued a strong year-end trading update, with the group’s performance expected to be ahead of expectations and year-end net cash is also expected to be ahead of expectations.

“The UK order book stands at £267m, down from £315m in November, but this is very much in line with management’s previous guidance.

“Non-executive chairman, John Dodds, has agreed to act as interim executive chairman and CFO, Alan Dunsmore, will step up to interim CEO. In our view, the group are in capable hands while Ian convalesces.”

Severfield will announce its financial results for the year ending March 31 on June 14.

The group recently announced ​​​six new ​British​ contracts worth £72​m, including London’s newest city skyscraper. ​T​he firm​ has been appointed ​​​​the steelwork contractor​ on ​​​​22 Bishopsgate in the City of London. Analysts said the prestigious contract will be worth up to £50m ​​​as Severfield helps to build one of the top three tallest buildings in the City of London.

T​he ​contract was awarded based on ​Severfield’s reputation as the company behind Wimbledon’s No. 1 Court and London’s tallest building The Shard.