Severfield-Rowen Plc, the market leading structural steel group, issues this Interim Management Statement covering the period to 17 November 2009.

Current Trading
In the second half of the year all group companies are performing operationally in line with expectations, delivering projects on time, with overall group financial projections emerging slightly ahead of management’s expectations.
Cash balances have improved in line with predictions.
Despite the considerable reduction in some UK steel construction sectors, the company’s ambitions of domestic market share growth and overseas development are progressing well.

Cost Reductions
Following the company’s announcements on cost reductions and capacities in September, the planned capacity reductions at Atlas Ward Structures (Sherburn) and Severfield-Reeve Structures (Dalton) have been or are being implemented by the end of December 2009.

Atlas Ward Structures has subsequently concluded agreements with the entire workforce on cost cutting measures and salary reductions.
Further discussions are taking place with the operational workforce at Severfield-Reeve Structures to conclude cost reduction measures ahead of 2010.

Demand and Orders
UK demand, as anticipated, is poor in several of the key steel sectors and it remains our view that the UK structural steel market will be at its lowest trough in 2010.
The industry is experiencing severe pricing pressure as a result of the imbalance between demand and supply.

The number of large UK projects will be limited in 2010, but remain important targets.

The current order book stands at a healthy £223m.
Petrochem projects in the Middle East and North Africa are now being released and the company is pleased to announce its first major success in this sector with the award of a large project in Abu Dhabi.
It is expected that our offices in Abu Dhabi can build on this success through 2010.

India
Progress remains on plan and within budget to commence operations via our joint venture, JSSL (JSW Severfield Structures Ltd) in July 2010.

The market prospects in India are strong and continue to grow.

We are also pleased to announce a second and complementary joint venture in India, details of which can be seen in our Press Releases.

Conclusion
The financial year of 2009 is concluding with overall group performance likely to be slightly ahead of expectations.

Whilst the UK market will be very challenging, the company has made evident progress in addressing capacities and costs and is well positioned to grow domestic share.
In export markets, the company is demonstrating its competitive capability.

JSSL (India) will be operational in the second half of 2010, in a robust and growing market with further significant value-adding opportunity.