NORTH Yorkshire headquartered steel group Severfield has turned losses of £2.5 million into a £1.4 million profit off the back of a "strong first half cash performance" and a "successful refinancing".

Reporting its interim results for the six months to September 30, the Thirsk-based group said despite a year on year fall in revenue, down from £117.1 million to £97.4 million, the company is well placed to benefit from a strengthening UK market.

The group, which recently rebranded to drop its Rowen name, operates in the UK as well as in India through a joint venture, JSW Severfield Structures.

Ian Lawson, chief executive officer at Severfield, said: "The first half of the year has seen further good progress across the whole Group.

"Stability within our UK operations has supported continued margin improvement in line with expectations and sustained production levels have underpinned much improved performance in India.

"The combination of a strong first half cash performance and the successful refinancing provides further balance sheet strength and a solid foundation for the Group as it continues to improve its profitability and develop its wider strategy.

"Overall, the Group’s strengthening operations and performance continues to leave it well placed to benefit from an improving market in the UK and we are encouraged by the improvement in our order intake, reflecting the higher levels of market activity.

"Accordingly, the Group remains on course to deliver earnings for the full year in line with the board’s expectations.”

Severfield is working on high-profile projects, including the expansion of the Etihad Stadium for Manchester City and further manufacturing plants for Jaguar Land Rover.