‘Challenging period’ for Severfield

The Thirsk-based company’s underlying loss before tax for the 15 month period ended March 31 2013 was £21.5m, compared with a £10.1m profit in the same period the year before.

A rights issue, which was completed successfully on April 5 2013, raised £44.8m of new funds

John Dodds, the executive chairman, said: “The 15 month period to March 31 2013 has been extremely challenging for the group with problems on its 122 Leadenhall Street contract being the most significant of several contract issues which contributed to the financial loss for the period.

“Management and organisational changes have already been made and further changes are in process. Meanwhile the group retains its core strengths, a strong market position and the continued support of its major customers.

“This, together with the shareholder support for the refinancing completed on April 5, gives me confidence that the group will improve its financial performance in the near term and deliver returns commensurate with its strong market position in the longer term.”