Severfield-Rowen expects profits to be as estimated

The Thirsk-based company remains cautious about its outlook on UK demand, but said it expects full-year underlying pre-tax profits to meet its estimates.

The company, which supplied steel for the new retractable roof on Wimbledon Centre Court and the 2012 London Olympics site, said JSW Severfield Structures – its joint venture with JSW Steel in India – would begin commissioning its plant in August.

Severfield said its order book stands at 247m and this would provide ample work through this year and into early 2011.

The shares closed the day down 1.7 per cent, a fall of 4p to 237p.

In April the company said demand and pricing levels in the UK and Ireland remain poor.

Chief executive Tom Haughey has previously warned this year will be the "trough" for the industry in the UK, down by 50 per cent on two years ago.

"The company's finances and market leading position are key attributes to its continuing success in the current trading climate," he said

Severfield is diversifying its earnings to spread risk globally. The joint venture in India will begin commissioning its first plant in August, hitting full output at the turn of the year.

It has won its first contracts in the industrial sector, and Mr Haughey said prospects in India are "very promising".

Severfield held its annual shareholder meeting yesterday, at which Mr Haughey thanked employees.