Severfield knocked by increased losses at its Indian joint venture

STEEL group Severfield, previously known as Severfield-Rowen, faced a four per cent drop in its share price yesterday after full-year results revealed increased losses from its Indian joint venture.

Shares closed at 54.25p after the company gave results for the year ending 31 March.

Severfield reported a loss after tax of £2.6m, an improvement on the £23.1m loss reported in the 15 months to March last year.

While the firm’s profit before tax was £4m, well up on the £21.5m loss reported a year earlier, shares of losses from its Indian joint venture climbed from £300,000 to £3m.

Its net funds of £300,000 was an improvement on last years £41.2m debt level.

Severfield said its UK order book was steady at £168m at 1 May this year,compared to £172m as of 1 November last year.

Chief executive Ian Lawson said: “Pleasingly, the group’s ongoing stabilisation and recovery generated increasing UK operating margins supported by a strong balance sheet and solid order book.

“While our Indian joint venture performed below expectations, actions are being taken to put the business in a sustainable position and we believe the market in India continues to present significant future growth opportunities.”