Severfield Share Discussion Threads

[rafieh] 28/11/2013 20:43

andy

Some largish trades today too.( two 500k trade, and one 780k)

[andyview] 28/11/2013 14:38

This is ticking along and up nicely, slow but sure!

Still no details on those huge trades yesterday...

[itchycrack] 28/11/2013 10:34

This is indeed a good sign.
IMHO the company has definitely turned a corner, the company has been restructured and everything is pretty much now in place for a recovery in this sector. The big question remains though is when will the recovery in major projects start? I can see this very very slowly grinding higher or just going sideways until a major new construction project is announced (IMHO).

[tiger20] 28/11/2013 10:26

Thanks Skinny it reinforces my belief in this company some very prestigous stadiums with the Olympic stadiums and the other 18 projects

[skinny] 28/11/2013 10:19

Its worth having a periodic look here :-

[tiger20] 28/11/2013 10:17

Im in,started nibbling at the shares on strength of director buying and I made money in the past on SFR- could they have picked up major contract ?

[roddiemac2] 27/11/2013 17:13

As ItchyCrack commented on the 13th., directors buying has been well timed in the past.

I have someone investigating the Indian construction market, to try to put some flesh on the bones . if the market there is going to move in a big way to steel construction, it would be good to get an idea of the potential. Looking on the optimistic side , my gut reaction is that SFR could be bigger in India than here , at some point.

[andyview] 27/11/2013 15:52

Anybody with thoughts on this ?

[andyview] 27/11/2013 15:35

Any ideas on the 2 trades of 6million today - answers on apostcard please...:

27-Nov-13
12:15:04
62.125
6,069,858
61.25
63.00
3.771M

27-Nov-13
12:14:34
62.125
6,099,934
61.25
63.00
3.790M

[andyview] 27/11/2013 15:29

I've backed the director buys and taken a little position.

I'm intrigued to know what the very large trade was all about...perhaps tomorrow will shed some light

[ivancampo] 27/11/2013 15:15

Director buys and massive volume - I'm in.

[skinny] 27/11/2013 13:07

Heavy volume today.

[eswr] 26/11/2013 13:31

Severfield Rowen - SFR - Interim results today. Far too overvalued in my view. All the recovery is priced in. They are £180m market cap (having done a deeply discounted emergency rights issue at 22 pence/share) and net cash of £1.5m plus a defined benefit pension deficit of £11m. So EV of around £190m. Underlying operating margin was just 2.5% (albeit they have guided to 5% as a medium term target). The underlying operating profit was just £3m (excl. amortisation, restructuring and impairments and the Indian JV losses) for 6 months. Even if they hit the 5% medium term target that MIGHT give them an annualised underlying operating profit of £12m. No dividend of course. "Some signs of UK market improving into 2014". Billington (small competitor) told me they don't think the margins (EBIT margins of 10%) from the era pre 2008 will ever come back. Assuming a normalised tax charge - PERHAPS WHEN they get the margins to 5% they will achieve 3 pence in earnings = PE of over 21 currently ASSUMING THEY EVENTUALLY ACHIEVE THAT. For a business where growth will be minimal. They have had to stop chasing any old revenue growth as the work can end up being unprofitable. While it is market leader in structural steel there is lots of excess capacity in the market. From 2000 to 2008 the UK market for structural steel was around 1.2m to 1.4m tonnes per annum. Post 2008 it dropped back to circa 0.8m tonnes and Tata forecast it to increase to around 0.9m tonnes by 2015 - so no big uplift back to the levels prior to 2008. It is cannot grow top line very much, this should be valued as a "mature" company probably justifying a PE of 12 = share price of around 36 pence.

[roddiemac2] 26/11/2013 09:59

The Indian JV is of particular interest to me , since its success appears to depend largely on ongoing changes in construction practice.

They are currently taking on lower margin work to keep the plant " as fully loaded as possible ", while at the same time expanding the factory, in anticipation of the market continuing its conversion " from concrete to steel in the medium term ".Assuming the inevitability of this change, how dramatic could it be in terms of future business for the JV ? I will investigate further.

[rafieh] 26/11/2013 09:33

This was recently tipped in Chart Breakout magazine. They don't usually tip "recovery" stocks, so this must have caught their attention for a reason. They do mention the new management being more efficient than the pervious bunch.

[meijiman] 26/11/2013 09:17

They seem to have got a grip on the situation and steadied the ship. I was more or less expecting losses from India but longer term it still looks to be an attractive market. see this as a decent medium term recovery story. it would be good to see some new institutional interest here as the new management team seems quite sensible.

[rafieh] 26/11/2013 09:01

Results are decent enough, but I think the market believes they are, to a large extent, already reflected in the share price. This will probably continue to recover over the next 12-18 months in a steady manner.

[skinny] 26/11/2013 07:09

Solid Overall Result - UK Margin Recovering - Operational Improvements Continue

Severfield-Rowen Plc, the market leading structural steel group, announces its interim results for the 6 months to 30 September 2013.


Highlights

· Underlying* profit before tax of £1.4m (2012: £21.1m loss)
· UK underlying operating margin (before JVs and associates) recovery to 2.5% (2012: -17.1%)
· Share of losses from Indian joint venture of £1.3m (2012: £0.4m profit)
· Period end net cash position of £1.5m (31 March 2013: £41.2m net debt)
· Further restructuring of largest business, Severfield-Watson Structures, concluded successfully
· Operational improvement programme progressing well and continuing
· UK order book steady at £172m at 31 October (August 2013: £178m)
· India order book of £34m at 31 October (August 2013: £35m)
· New Chief Executive, Ian Lawson, appointed on 1 November 2013

[rafieh] 22/11/2013 16:24

just bought a lot of these shares at 62.85p(trade not shown on ADVFN. Here is hoping for a good set of figures on Tuesday.

[waldron] 22/11/2013 10:08

The Swiss National Bank (SNBN) will maintain the cap on the franc as the global economic recovery proceeds sluggishly, board member Fritz Zurbruegg said.

"The minimum exchange rate will remain a necessary instrument for the foreseeable future," the policy maker said at a reception of money-market traders in Geneva yesterday. "The monetary policy we have conducted to date will continue to apply without any restrictions."

Citing the risk of deflation and a recession, the Zurich-based central bank set a cap of 1.20 per euro on the haven franc in September 2011, threatening unlimited currency interventions to defend it. While consumer prices are falling, the economy has escaped a recession, managing to stay relatively unscathed from the debt crisis that has afflicted the neighboring euro area.

In Switzerland, gross domestic product is now 5 percent above its pre-crisis level. Even so, growth has been driven by domestic consumption due to high immigration and annual output in per capita terms has not yet returned to its pre-crisis level, Zurbruegg said, adding that the output gap remains negative.

The franc is still 10 percent above its long-term average, in trade-weighted, inflation-adjusted terms, he said. Zurbruegg reiterating that the central bank remains "prepared to enforce the minimum exchange rate by buying foreign currency in unlimited quantities if necessary, and to take further measures as required."

Sluggish Growth
"Is a return to normal on the horizon?" Zurbruegg asked, noting that the global recovery is "merely sluggish" and there is still the risk of things worsening again. "Yes, but much more slowly than expected."

The SNB sees growth of between 1.5 percent and 2 percent for this year, while it predicts consumer prices will fall 0.2 percent. There is no threat to price stability in the medium term, Zurbruegg said.

The SNB has accumulated 434.7 billion Swiss francs ($475 billion) in foreign currency reserves due to its campaign to defend the ceiling on the franc. The central bank hasn't had to intervene in currency markets for a year, Zurbruegg said, reiterating comments by SNB President Thomas Jordan a month ago.

Because of extremely loose monetary policy, the Swiss real-estate market is in the throes of its biggest property market boom in two decades. The SNB has repeatedly warned of overheating.

"Since low interest rates can be expected to persist in Switzerland for some time yet, we are keeping a very close watch on developments in the mortgage and real-estate markets," Zurbruegg said.

To contact the reporter on this story: Catherine Bosley in Zurich at [e-mail]

To contact the editor responsible for this story: Craig Stirling at [e-mail]

[waldron] 22/11/2013 10:03

The Swiss National Bank (SNBN) will maintain the cap on the franc as the global economic recovery proceeds sluggishly, board member Fritz Zurbruegg said.

"The minimum exchange rate will remain a necessary instrument for the foreseeable future," the policy maker said at a reception of money-market traders in Geneva yesterday. "The monetary policy we have conducted to date will continue to apply without any restrictions."

Citing the risk of deflation and a recession, the Zurich-based central bank set a cap of 1.20 per euro on the haven franc in September 2011, threatening unlimited currency interventions to defend it. While consumer prices are falling, the economy has escaped a recession, managing to stay relatively unscathed from the debt crisis that has afflicted the neighboring euro area.

In Switzerland, gross domestic product is now 5 percent above its pre-crisis level. Even so, growth has been driven by domestic consumption due to high immigration and annual output in per capita terms has not yet returned to its pre-crisis level, Zurbruegg said, adding that the output gap remains negative.

The franc is still 10 percent above its long-term average, in trade-weighted, inflation-adjusted terms, he said. Zurbruegg reiterating that the central bank remains "prepared to enforce the minimum exchange rate by buying foreign currency in unlimited quantities if necessary, and to take further measures as required."

Sluggish Growth
"Is a return to normal on the horizon?" Zurbruegg asked, noting that the global recovery is "merely sluggish" and there is still the risk of things worsening again. "Yes, but much more slowly than expected."

The SNB sees growth of between 1.5 percent and 2 percent for this year, while it predicts consumer prices will fall 0.2 percent. There is no threat to price stability in the medium term, Zurbruegg said.

The SNB has accumulated 434.7 billion Swiss francs ($475 billion) in foreign currency reserves due to its campaign to defend the ceiling on the franc. The central bank hasn't had to intervene in currency markets for a year, Zurbruegg said, reiterating comments by SNB President Thomas Jordan a month ago.

Because of extremely loose monetary policy, the Swiss real-estate market is in the throes of its biggest property market boom in two decades. The SNB has repeatedly warned of overheating.

"Since low interest rates can be expected to persist in Switzerland for some time yet, we are keeping a very close watch on developments in the mortgage and real-estate markets," Zurbruegg said.

To contact the reporter on this story: Catherine Bosley in Zurich at [e-mail]

To contact the editor responsible for this story: Craig Stirling at [e-mail]

[waldron] 22/11/2013 10:02

The Swiss National Bank (SNBN) will maintain the cap on the franc as the global economic recovery proceeds sluggishly, board member Fritz Zurbruegg said.

"The minimum exchange rate will remain a necessary instrument for the foreseeable future," the policy maker said at a reception of money-market traders in Geneva yesterday. "The monetary policy we have conducted to date will continue to apply without any restrictions."

Citing the risk of deflation and a recession, the Zurich-based central bank set a cap of 1.20 per euro on the haven franc in September 2011, threatening unlimited currency interventions to defend it. While consumer prices are falling, the economy has escaped a recession, managing to stay relatively unscathed from the debt crisis that has afflicted the neighboring euro area.

In Switzerland, gross domestic product is now 5 percent above its pre-crisis level. Even so, growth has been driven by domestic consumption due to high immigration and annual output in per capita terms has not yet returned to its pre-crisis level, Zurbruegg said, adding that the output gap remains negative.

The franc is still 10 percent above its long-term average, in trade-weighted, inflation-adjusted terms, he said. Zurbruegg reiterating that the central bank remains "prepared to enforce the minimum exchange rate by buying foreign currency in unlimited quantities if necessary, and to take further measures as required."

Sluggish Growth
"Is a return to normal on the horizon?" Zurbruegg asked, noting that the global recovery is "merely sluggish" and there is still the risk of things worsening again. "Yes, but much more slowly than expected."

The SNB sees growth of between 1.5 percent and 2 percent for this year, while it predicts consumer prices will fall 0.2 percent. There is no threat to price stability in the medium term, Zurbruegg said.

The SNB has accumulated 434.7 billion Swiss francs ($475 billion) in foreign currency reserves due to its campaign to defend the ceiling on the franc. The central bank hasn't had to intervene in currency markets for a year, Zurbruegg said, reiterating comments by SNB President Thomas Jordan a month ago.

Because of extremely loose monetary policy, the Swiss real-estate market is in the throes of its biggest property market boom in two decades. The SNB has repeatedly warned of overheating.

"Since low interest rates can be expected to persist in Switzerland for some time yet, we are keeping a very close watch on developments in the mortgage and real-estate markets," Zurbruegg said.

To contact the reporter on this story: Catherine Bosley in Zurich at [e-mail]

To contact the editor responsible for this story: Craig Stirling at [e-mail]

[waldron] 22/11/2013 10:02

The Swiss National Bank (SNBN) will maintain the cap on the franc as the global economic recovery proceeds sluggishly, board member Fritz Zurbruegg said.

"The minimum exchange rate will remain a necessary instrument for the foreseeable future," the policy maker said at a reception of money-market traders in Geneva yesterday. "The monetary policy we have conducted to date will continue to apply without any restrictions."

Citing the risk of deflation and a recession, the Zurich-based central bank set a cap of 1.20 per euro on the haven franc in September 2011, threatening unlimited currency interventions to defend it. While consumer prices are falling, the economy has escaped a recession, managing to stay relatively unscathed from the debt crisis that has afflicted the neighboring euro area.

In Switzerland, gross domestic product is now 5 percent above its pre-crisis level. Even so, growth has been driven by domestic consumption due to high immigration and annual output in per capita terms has not yet returned to its pre-crisis level, Zurbruegg said, adding that the output gap remains negative.

The franc is still 10 percent above its long-term average, in trade-weighted, inflation-adjusted terms, he said. Zurbruegg reiterating that the central bank remains "prepared to enforce the minimum exchange rate by buying foreign currency in unlimited quantities if necessary, and to take further measures as required."

Sluggish Growth
"Is a return to normal on the horizon?" Zurbruegg asked, noting that the global recovery is "merely sluggish" and there is still the risk of things worsening again. "Yes, but much more slowly than expected."

The SNB sees growth of between 1.5 percent and 2 percent for this year, while it predicts consumer prices will fall 0.2 percent. There is no threat to price stability in the medium term, Zurbruegg said.

The SNB has accumulated 434.7 billion Swiss francs ($475 billion) in foreign currency reserves due to its campaign to defend the ceiling on the franc. The central bank hasn't had to intervene in currency markets for a year, Zurbruegg said, reiterating comments by SNB President Thomas Jordan a month ago.

Because of extremely loose monetary policy, the Swiss real-estate market is in the throes of its biggest property market boom in two decades. The SNB has repeatedly warned of overheating.

"Since low interest rates can be expected to persist in Switzerland for some time yet, we are keeping a very close watch on developments in the mortgage and real-estate markets," Zurbruegg said.

To contact the reporter on this story: Catherine Bosley in Zurich at [e-mail]

To contact the editor responsible for this story: Craig Stirling at [e-mail]