Severfield-Rowen on track to deliver

Structural steel group Severfield-Rowen has said it remains on track to deliver a result for the full year that is in line with management's expectations.

The company's overall trading performance and financial position for the year to date remain in line with management expectations and is supported by impressive order books in both the UK and India. The company's debt levels also remain in line with expectations.

In a statement the firm said: "The company remains cautious about the market outlook in the UK and continues to plan on the basis of subdued demand and relatively tight pricing. In recent weeks two more competitors have ceased trading, which supports the company's view that supply/demand rebalancing is continuing.

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"The group continues to enjoy a healthy UK order book of £230 million which, together with its pipeline of prospects, underpins the group's confidence in achieving its activity targets in the UK for 2012."

The firm was keen to emphasise the positive demands and prospects it is experiencing in India, where it has an order book currently standing at £61m.

New banking facilities with RBS and Yorkshire Bank were negotiated during the period, including a £50m revolving credit facility for five years, to November 2016.

The share price rose 12.9% to 175p by 13:53.

NR