Steel group posts huge profit losses

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The structural steel group that owns Severfield-Rowen Structures in South Normanton has posted its financial results for the year ending March 2013.

And the news isn’t good, particularly as the Chad recently reported that the Yorkshire-based company plans to shed jobs at its South Normanton offices.

The company’s preliminary results show an underlying loss before tax of £21.5m (2011: £10.1m profit).

The report also shows an operating loss (before results of Associates) of 26.5.

Overall, revenue was posted as £318.3m.

Executive chairman John Dodds said:”The 15 month period to 31 March 2013 has been extremely challenging for the Group with problems on its 122 Leadenhall Street contract being the most significant of several contract issues which contributed to the financial loss for the period.

“Management and organisational changes have already been made and further changes are in process.

“Meanwhile the group retains its core strengths, a strong market position and the continued support of its major customers.

“This, together with the shareholder support for the refinancing completed on 5th April, gives me confidence that the group will improve financial performance in the near term and deliver returns commensurate with its strong market position in the longer term.”

The company recently announced that a restructuring process is expected to lead to around 93 job losses at the business’s manufacturing facilities at Lostock, Lancashire, and at the commercial offices, which are in South Normanton.

The company did however report a ‘solid’ order book going forward.