Severfield-Rowen Structures, Watson Steel Structures and Steelcraft Erection Services are all performing below expectation. Only Atlas Ward Structures and Fisher Engineering are meeting expectations.
The three under-performing divisions are being merged into a single division, Severfield-Watson Structures to save آ£2m a year in overheads. Fifty jobs are to go in the rationalisation.
In a trading update to shareholders today, the company said that group profit-before-tax in 2012 was now likely to be around آ£1m.
“The board remains confident that the ongoing business reorganisation and the conclusion of the affected projects will see an improvement in performance from Severfield-Watson Structures in calendar Q1 2013, together with continued strong performance from Atlas Ward Structures and Fisher Engineering,†said chief executive Tom Haughey.
“The Group's UK businesses continue to operate in a difficult climate with the previously flagged pricing pressure and protraction of contractual settlements still posing significant challenges as clients and the supply chain compete harder in a shrinking market.â€
He added: “Demand in the UK remains depressed, however the group's order book levels continue to be consistently strong.آ Our outlook for UK demand does not anticipate a recovery, but we remain confident that our market leading position and identified future prospects will enable the group to sustain activity levels in the coming periods.â€
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