Severfield-Rowen, a UK structural steel group, has posted half-yearly results showing an almost 37 per cent decline in revenue compared with the same period last year.
Commenting on the results, which showed a £126.7m revenue – down from £200m in 2009 – Tom Haughey, the company’s chief executive officer, said that despite the prevailing difficult UK market environment the company continued to perform relatively well, outperforming its competition in terms of operational performance, cost and cash management and contract awards.
The pronounced falls in revenue and margins were anticipated by Severfield-Rowen and reflect the significant fall in UK demand for structural steelwork.
However, Haughey said that the company was pleased with its strong order book of £244m, which includes a new Terminal 2 contract for BAA at Heathrow, which it won in a competitive tender.
In a statement, Severfield-Rowen stated that it had almost doubled its share of the domestic market, showing the intrinsic strengths of its business against a very difficult trading background.
The UK economy is recovering more slowly than forecast, but the company believes that the key market sectors of power, energy and waste, London commercial offices and infrastructure still present good opportunities in 2011 and beyond.