Steel specialist鈥檚 pre-tax profts fell by 70%, and directors expect the tough climate to continue into 2011

Severfield has reported revenue is down from 拢349m in 2009, to 拢267m in 2010 - a fall of 24% - in what was a tough year for the Yorkshire-based steel specialist.

The bad news didn鈥檛 stop with its revenue figures, as pre-tax profit at the firm fell by 70%, ending the year at 拢15.3m, down from 拢50.8m in 2009.

Severfield also moved from a net cash position of 拢11.5m at the end of 2009 and ended 2010 with debts of 拢15m.

Directors expect the tough climate to continue in 2011, before recovering in 2012. In contrast to their earlier forecast of a recovery
in 2011, directors expect the recovery to be led by the industrial, commercial and energy and power markets.

Commenting on the results, Tom Haughey, Severfield鈥檚 chief executive, said: 鈥淭welve months ago the company had the view that 2010 would be the low point of the cycle for our industry, but UK economic conditions, the public spending review and rising steel costs are likely to prolong the relatively weak levels of activity throughout most of 2011.鈥�

Despite giving a negative assessment of the sector at present, Severfield鈥檚 order book currently stands at 拢226m, which is an increase of 拢7m on the 拢219m that it reported at the end of 2009.

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