BRITAIN'S biggest structural steel firm has moved back into profit and reported improving orders over the first six months of the year.

Severfield, based at Dalton, near Thirsk, North Yorkshire took on more than 70 projects during the half year in key market sectors such as rail, transport, bridges, office developments, stadia, warehouses and distribution centres.

The company, which has worked on landmark buildings such as Arsenal's Emirates Stadium and The Shard skyscraper saw underlying operating profits rise from £3m to £3.6m in the first six months of 2014 up from a loss of £2.5m last year.

The group’s UK order book stood at £185m on November 1, up from £168m at the beginning of May, reflecting a general upturn in the industry. However, Ian Lawson, the chief executive, warned of some market tension in the UK as main contractors continue to work through legacy contracts.

Mr Lawson, added: "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."