Severfield Rowen posts full year loss, slashes dividend

4th Jun 2013 12:20

Shares in structural steel company Severfield Rowen fell as it revealed a pre-tax loss for the 15 months to the end of March.The group posted an underlying loss before tax of £21.5m compared to a profit of £10.1m a year earlier following problems with one of its contracts. Revenue increased to £318.3m from £267.8m before.Chairman John Dodds commented: "The 15 month period to March 31st 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," he added.Severfield Rowen said nevertheless, following refinancing completed in April, it is confident its financial performance will improve in the near term. The dividend per share has been reduced to 1.50p from 5.00p previously. In a separate statement, the group named Ian Cochrane as it new Chief Operating Officer with effect from June 5th, replacing Peter Emerson who, as previously announced, will be retiring on the same day.Cochrane, currently Operations Director, will also join the Board as an executive director. Shares of Severfield Rowen fell 3% to 48.50p at 12:30 in London.CJ