Severfield-Rowen’s trading performance in line with expectations

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STRUCTURAL steel maker Severfield-Rowen said it continues to perform well in the UK, despite sentiment remaining subdued given the economic and sector backdrops.

The Thirsk-based company said, in an interim management statement covering the period to May 18, that trading performance during the period has been in line with its expectations.

The firm said its UK order book of £216 million “remains strong”, and is “broadly level” with the £221m order book reported in March this year. Meanwhile, operations in India are “making good progress”, said Severfield-Rowen, with the order book currently standing at £36m.

While this is lower than previously reported, the firm said it provides for all of its production requirements for the remainder of this calendar year and is supported by “a growing and higher quality pipeline of prospects” now approaching £100 million.

Severfield-Rowen said it remained cautious about the timing of UK economic and construction sector recoveries.

The statement read: “While full year results are anticipated to show a marginal improvement over 2011 and improved cash generation during the year, the timing of key projects will place a greater weight towards the second half of the year.

“In the UK, we will continue to consolidate our market leading position despite the very tough conditions, but remain of the view that recovery in our markets is still distant.

“In India, we will build upon our strong initial progress, devoting the necessary energy and resources to develop the business further.”