23rd Mar 2015 09:35
LONDON (Alliance News) - Structural steel company Severfield PLC on Monday said it expects to meet its expectations for the year, despite saying it has incurred nearly GBP1 million in extra costs from bolt replacement work at the Leadenhall Building in the City of London.
Severfield said its overall trading for the financial year to March 31 remains in line with its expectations, with a further strengthening in its UK order book and a good performance in its JSW Severfield Structures Ltd business in India in the second half.
But the company said it has incurred nearly GBP1 million in additional costs due to a programme of bolt replacement work being undertaken at the Leadenhall Building, known as the Cheesegrater. The building, the second-tallest in London, saw two long bolts snap in November last year, with some debris falling onto the street below from five floors up.
Severfield said the replacement programme is being carried out with British Land Co PLC, Laing O'Rourke and Arup and is likely to continue until the end of 2015. While the works progress, all parties involved are in talks on where the liability should fall for the costs.
Severfield said it is treating the costs as exceptional and said they will not impact on its underlying operating profit for the year to the end of March.
Shares in Severfield were down 4.3% to 64.82 pence on Monday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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