On August 25, UK-based structural steel producer Severfield-Rowen Plc issued its financial results for the first half of 2010, with the company's revenues and profit falling significantly as a result of the major drop in UK demand for structural steelwork.
According to the financial results, the underlying pre-tax profit of the company was £8.5 million in the first six months of 2010, down 66.7 percent from £24.6 million in the first six months of 2009. Total revenues in the period in question saw a decrease of 36.7 percent, dropping from £200 million in the same period of the previous year to £126.7 million. Net margins fell to 6.5 percent from 12.3 percent year on year.
The company said it would pay an interim dividend of 5 pence for the period, down from 10 pence in the same period last year.
Commenting on the results, CEO Tom Haughey said, "The company continues to perform relatively well from a position of financial strength in the prevailing difficult UK market environment. It is outperforming its competition in terms of operational performance, cost and cash management and contract awards. The pronounced falls in revenue and margins are as anticipated by the company and reflect the significant fall in UK demand for structural steelwork."