Profit warning issued by Severfield-Rowen

The Thirsk-based company said that profit before tax in the first half is now currently expected to be around £1.5m, due to “anticipated operational overruns” of £1.6m against its estimated costs on two projects in the UK.

It said in a statement to the stock market: “Further to the interim management statement on 18 May 2012, which indicated that results for the full year would see a greater weighting towards the second half of the year, we now expect that weighting to be more pronounced as a result of anticipated operational overruns of £1.6m against our estimated costs on two complex projects in the UK. Profit before tax in the first half is now currently expected to be in the order of £1.5m.

“Our performance for the full year remains well supported by our strong order book, anticipated full capacity utilisation and good project mix in both the UK and India. While we still expect to deliver profit growth year on year, profit for the full year may be lower than current expectations.”