This is a quality stock.
Just starting a thread - I'll post more very shortly.

K******

StockMarketWire.com
Structural steel group Severfield-Rowen expects a recovery in business performance starting in 2013.

The company says its results this year are being adversely affected by a small number of projects in three of its UK businesses.

But it says its overall leading position in terms of market share and activity is undiminished. It adds: "The UK order book and the known mix of secured projects, together with the reorganisation of the affected businesses, lead us to expect a recovery in business performance starting in 2013.

"In India, we see very strong demand for our services and we will continue to work with our partner to grow the business at the fastest appropriate pace."

StockMarketWire.com
Steel company Severfield-Rowen said its UK operations for the full-year had been materially adversely affected by cost overruns, and that it would review its current contract base.

In light of this, the company had decided a change in leadership was required and chief executive Tom Haughey was standing down with immediate effect. Chairman John Dodds would assume his role, pending the appointment of a new CEO.

The company had earlier said its UK businesses were operating in a difficult climate with pricing pressure and protraction of contractual settlements posing significant challenges as clients and the supply chain compete harder in a shrinking market.

"Since then our UK performance has been further, and materially, adversely affected by cost overruns on our 122 Leadenhall contract," Severfield-Rowen said in a trading statement.

"As a result, the board intends to review expeditiously its current contract base and will provide a further update to the market, as soon as possible, when it has greater clarity on the financial impact of this exercise," it said.

At Dec. 31, 2012, the company's net borrowings were £30 million, with the order book stable at £209 million.

Severfield-Rowen said it was in talks with its lending banks regarding compliance with its covenants.

"The discussions with the Company's lending banks, and its other stakeholders, will continue with the objective of placing the Group on sound financial foundations that support its UK business and the further development of its Indian joint venture," the company said.

Dodds said he was disappointed by the trading update.

"My task, now, is to re-establish the credibility of the Group with all its stakeholders, bring greater control and discipline to its operations and secure Severfield-Rowen's longer term financing."

Harry - do you follow these? If so, is it worth the effort of researching?

Not really. It's on my watch list atm as a possible recovery play when the economy starts to improve, but looks like they have bigger problems than previously thought. I'll continue to watch, but suspect there is more downside to come & a possible threat to the div. I get IC mag each week and I think they were recently tipped, but looks like even the experts get their fingers burnt every now & then!

Ok thanks.

Sold these as 2222p.

Been looking at them for months.

There is a god after all.

Wonder if there is any reflection to the wider market?

Rights issue implemented this morning:
"It is expected that admission of the New Ordinary Shares to the premium segment of the Official List and to trading (nil paid) on the London Stock Exchange's main market for listed securities, together with the commencement of dealings in the New Ordinary Shares (nil paid), will become effective at 8.00 a.m. on 19 March 2013."

Harry - the chart in post 36 - its one of those gaps!

Thanks. This one is high risk atm imo. Am playing the LAM & SDY game of 'fill the gap' but this company is having a pretty hard time and not confident that this rise will continue.

Final Results - Tuesday 4 June 2013.

Looking strong this morning - currently up 8.8%.

J O Hambro Capital Management Group Limited < 13%

Standard Life Investments Ltd (Vidacos nominees) >5%

Preliminary Results

Financial Highlights
· Rights Issue completed successfully on 5 April 2013 raising £44.8m of new funds (net of expenses)

· Revised revolving credit facility of £35m effective from completion of Rights Issue

· UK business reorganisation and operational improvements continuing under new Group leadership

· Underlying loss before tax of £21.5m (2011: £10.1m profit)

· Share of losses from Indian joint venture £0.3m (2011: £2.5m)

· Basic earnings per share of -25.91p (2011: 6.52p)

· No final dividend recommended (first interim dividend 1.50p)

· Period end net debt of £41.2m (31 December 2011: £31.3m)

· Solid UK order book of £197m (31 December 2012: £209m)

· Current JSSL (India) order book value £29m (31 December 2012: £29m)

Finally starting to look interesting.

On the back of BILN trading statement.

5 month high @57p

Yes ...good day, good day.

Over 800K block buys @ 57p this morning.

Very nice, very nice.

Interim Management Statement

The Group's overall trading performance for the year to date remains in line with management expectations. The Group's borrowings are also in line with expectations following the completion of the Rights Issue in April.

UK

The reorganisation of the Group's Severfield-Watson Structures business is now substantially complete. The Group has successfully achieved the anticipated savings and made good progress with the associated operational improvement programme.

The UK order book of £178m is slightly lower than that previously reported, but it remains at a level that management is comfortable with, given the current state of the UK market, the capacity reductions being implemented within the business, and the Group's more selective approach to securing work. There are early signs that the market may be marginally improving into 2014.

JSW Severfield Structures Ltd (India)

The primary focus in India continues to be on the commercial development of the business and conversion of the market from concrete to steel. While progress is encouraging, the order book level of £34.8m is not yet sufficient to maintain production at a break-even level. The factory expansion is almost complete and the increased capability will play an important role in the continuing business development process.

Outlook

While short term challenges remain, the Group is making encouraging progress with its operational improvements, supported by a strong balance sheet, and is maintaining its market position. Management is confident that the Group is progressing in line with its expectations and will be well placed to benefit from any recovery in the UK construction market.

-Ends-