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Severfield-Rowen's pre-tax profit reaches high

Severfield-Rowen’s profits soared 42 per cent over the first half of 2008, underpinned by Olympic-related works as well as significant contracts in the health, energy and education sectors.

In its trading update for the six months to 30 June, the company announced profits of £21.6 million – up from £15.2 million in 2007. Its revenue grew 26 per cent to £173.3 million over the same period.

Severfield-Rowen picked up the £75 million steel contract for Westfield’s Stratford City retail scheme in East London early in the year, and has also secured wins on Wimbledon Centre Court's new closing roof, London’s Thameside Hospital and Dublin International airport.

Chief executive officer Tom Haughey said: “Severfield-Rowen has delivered substantial growth in the first half of 2008 and is very pleased with the improvement in its financial performance, the strength and longevity of the order book and the very strong cash generation.”

The company said its order book now stood at some £431 million.
Mr Haughey said while the general UK economic situation and its impact on the construction sector could not be ignored, Severfield-Rowen was better placed to deal with the climate because it was not exposed to the residential market and its key sectors remained relatively strong.

He said: “We are confident of meeting the board’s expectations for 2008 and have a clear strategy to deliver continued shareholder value over the medium and long term.”