Severfield-Rowen’s profits fall by a third

Severfield-Rowen expects limited growth prospects for 2012, but said it would focus on sectors with competitive advantages such as power and energy.

The company said it would continue to manage costs tightly to hold margins at a steady rate.

Severfield-Rowen also plans to merge two of its operating companies - Severfield-Reeve Structures and Rowen Structures - from April 1, into a new unit, Severfield-Rowen Structures.

The company, which is supplying steel for new skyscrapers such as the Shard and the Cheesegrater in London said it would pay a final dividend of 3.5 pence a share, taking its total dividend to 5 pence per share, down by a third from last year.

The January to December underlying pre-tax profit fell to £10.1m from £15.3m. Revenue rose marginally to £267.8m.

Severfield-Rowen shares, which have gained 22 per cent since the beginning of the year, closed at 203.5 pence on Monday on the London Stock Exchange.

Tom Haughey, the chief executive, said: “The group is pleased to present a sound set of results, in-line with overall market expectations, underpinned by a strong UK performance, while operations in India continue to improve.”