Severfield Regulatory News (SFR)

28 Jan 2005 07:00

Severfield-Rowen PLC28 January 2005 28 January 2005 Trading update and possible acquisition In its half year results announcement made on 21 September 2004,Severfield-Rowen Plc ("the Company"), the market leading structural steel group,announced that it was greatly encouraged with its results for the first half of2004 and that the Group continued to trade in advance of its expectations forthe full year, citing increased demand for its products and positive marketconditions in the structural steel sector as a whole. This trend continued forthe remainder of the year and it is expected that the Company's normalisedprofit before tax for 2004 will be at least in line with current marketexpectations. The preliminary announcement of the Company's results will be made in late March2005, at which time further details will be given. The Company also announces that it has been granted the right to acquire AtlasWard Holdings Limited ("Atlas") for an aggregate purchase price of £1.21m. Under an Agreement, entered into on 27 January 2005, between the Company and theBank of Scotland, ("BoS"), a major shareholder of Atlas, BoS has irrevocablyundertaken to accept an offer for its shares in Atlas based on that value shouldthe Company make such an offer on or before 26 March 2005 and in suchcircumstances BoS has agreed to exercise its drag along rights requiring allother shareholders in Atlas to likewise accept the offer. The Company is now commencing due diligence with a view to considering themaking of an offer within the relevant period. Atlas, based in Sherburn near Scarborough, North Yorkshire, designs, fabricatesand erects structural steelwork, and has a business and client profile which iscomplementary to that of the Company. In the year ended 31 December 2004 Atlashad an estimated turnover of approximately £35m. Enquiries Severfield-Rowen PlcPeter Levine, Chairman Tel: 0113 246 9993 Financial DynamicsRichard Mountain Tel: 020 7269 7291 This information is provided by RNS The company news service from the London Stock Exchange