Severfield-Rowen's forward orderbook stands at £310m

Severfield-Rowen, the structural steel group, reports an orderbook of £310m which it says is “very healthy in the context of much lower levels of demand from the domestic market”.

In an interim management statement covering the current calendar year up to 14 May 2009, Severfield comments that “trading performance in 2009 to date is in line with management's expectations with all group companies operating at full capacity”.

However, the statement continues: “The UK outlook for the remainder of 2009 and into 2010 remains challenging, although this is being partially offset by the group's strategy of growing domestic market share.

“For example, the group has recently been awarded the contract to provide and erect the steel for the Shard of Glass, London Bridge development.”

Export Opportunities

Development of sales opportunities in export markets has been supported by the establishment of a sales office in Abu Dhabi where the focus is on petrochemical and traditional projects.

JSW Severfield Structures

The company is making “satisfactory advances” with its joint venture in India and remains on course to commence operations in the summer of 2010. It adds that it is “pleased with the strong construction prospects it continues to identify in India”.

Outlook

Severfield points out that it has a strong balance sheet and financial base, and continues to generate strong cash flow. As a result, it is on line to further reduce its debt by the end of 2009.