Olympic work is now complete, but other orders have come in to take its place, the company said this morning.
For the year to 31 December 2011, Severfield-Rowen’s group revenue was steady at £267.8m (2010: £266.7m). Underlying operating profit was down 28% to £11.7m (2010: £16.2m). Reported pre-tax profit was down 63% to £6.8m (2010: £11.1m).
A newish joint venture in India is starting to make headway but lost £2.5m for the company in 2011.
Chief executive Tom Haughey described the results as “sound” and in line with overall market expectations. He said that market conditions continued to be tough but Severfield-Rowen was prepared.
“The group has entered 2012 well placed to face the on-going challenges of a subdued domestic market with limited growth prospects. UK performance measured against our peers was again highly creditable, displaying the group's financial, commercial and service strengths and its market leading position,” Mr Haughey said.
“The UK economy remains lacklustre and the duration of the downturn is having a significant impact upon the durability of our industry competitors, several of whom exited the sector in 2011.
“The group's market share in its key sectors continues to grow with a post-Olympic order book of £221m. The order book composition is largely as forecast from commercial offices, industrial, warehousing and energy/power sectors.
“Significantly, JSW Severfield Structures Ltd in India has continued to increase its market presence and operational outputs and we anticipate that it will contribute positively in 2012.”
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