STEEL business Severfield Rowen has announced losses of more than £20 million in what it called the most challenging period in the group’s history.

The business, based in Dalton, near Thirsk, recorded an underlying £21.5 million loss during the 15 months to March 31, when it made revenues of £318.3 million.

In the year ended December 31, 2011, the business had made £10.1 million profit on revenues of £267.8 million.

John Dodds took over as executive chairman of the business after former chief executive Tom Haughey stood down in January, amid costly contractual problems on a large London office project at 122 Leadenhall Street.

Mr Dodds said that the Leadenhall project was the most significant issue behind the company’s financial loss.

He said: “The 15 months ended March 31, 2013, have probably been the most challenging in the group’s history.

“Problems with the contract for 122 Leadenhall Street were the most significant of several issues which adversely impacted the results for the period.”

The company raised £44.8 million from its shareholders through rights issue, which has provided it with a revolving credit facility of £35 million, it said.

A restructuring of the business, which has reduced its factory capacity by about ten per cent and includes 93 redundancies, announced last month, in its Lancashire and Derbyshire operations, is also expected to save the company more than £4 million a year.

Mr Dodds said: “Management and organisational changes have already been made and further changes are in process. Meanwhile, the group retains its core strengths, a strong market position and the continued support of its major customers.

“This, together with the shareholder support for the refinancing completed on April 5, gives me confidence that the group will improve financial performance in the near term and deliver returns commensurate with its strong market position in the longer term.”

The company said it has a UK order book worth £197 million, including a good mix of London commercial offices, industrial buildings, warehousing, waste to energy and transport projects.