January 23, 2013 / 8:06 AM / in 5 years

Severfield-Rowen CEO quits as cost overruns hit performance

Jan 23 (Reuters) - Structural steelwork maker Severfield-Rowen Plc said Chief Executive Tom Haughey resigned after cost overruns at one of its projects in London further hit its performance in the United Kingdom.

The company, which had net debt of 30 million pounds ($47.60 million) as of Dec. 31, also said it was in talks with its lenders regarding compliance of its covenants.

Severfield-Rowen, which has worked on access bridges at football club Arsenal’s Emirates Stadium, said Chairman John Dodds would become executive chairman until a chief executive was appointed.

The company also said it would review its current contract base due to cost overruns on its contract to provide steel fabrication at 122 Leadenhall, a project tipped to be one of the tallest skyscrapers in the City of London and known as the “Cheesegrater” for its distinctive shape.

Severfield-Rowen’s order book stood at 209 million pounds as of Dec. 31.

Shares in the company closed at 199.875 pence on Tuesday on the London Stock Exchange.

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