June 11, 2012 / 7:21 AM / in 6 years

REFILE-UPDATE 1-Cost overruns to dent Severfield-Rowen profit

* Sees H1 pretax profit of 1.5 mln stg

* Says FY pretax profit may fall short of market expectations

June 11 (Reuters) - Structural steelwork maker Severfield-Rowen Plc warned that its full-year profit might be lower than market estimates as it expects cost overruns on two projects in the United Kingdom, sending its shares down 17 percent.

The company, which has worked on access bridges at football club Arsenal’s Emirates Stadium, said last month it anticipated full-year results to show a marginal improvement over 2011.

“While we still expect to deliver profit growth year on year, profit for the full year may be lower than current expectations,” the company, which has also worked on Wimbledon’s Center Court and the 2012 Olympics stadium, said in a statement.

The company expects cost overruns of 1.6 million pounds ($2.47 million) and first-half pretax profit of 1.5 million pounds.

The company posted a pretax profit of 3.4 million pounds for January-June last year.

A company spokesman declined to name the projects affected but said they remained on track for completion in line with customers’ timetables.

The company’s stock, one of the top percentage losers on the London Stock Exchange on Monday, was down at 136 pence at 0720 GMT.

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