STEEL group Severfield-Rowen said it was confident for the coming months despite posting a slide in full-year profits.

The firm, of Dalton, North Yorkshire, said turnover for the year to December 31 rose 13 per cent to £145.8m.

But tough economic conditions, higher costs and delays in completing contracts meant pre-tax profits fell from £10.3m to £6.5m.

Chairman Peter Levine said: "In the face of very difficult market conditions, Severfield-Rowen has produced a very resilient set of results, which are particularly pleasing when placed in the context of the sector as a whole."

Mr Levine said that two recent acquisitions, construction engineering firm Watson Steel, in November, and York-based Tubemasters earlier this year, were "good value and timely".

The deals mean the firm now has three distinct subsidiaries - Severfield-Rowen Structures in Dalton, Rowen Structures, in Nottingham, and Watson Steel Structures, in Bolton.

Mr Levine said: "The year has started soundly, in line with forecasts, and while the group is not immune to industry price pressures, the board looks forward to a successful and industry beating year."

The group's order book is worth more than £77m and contracts include the London Stock Exchange's new home in Paternoster Square in the City.

Severfield-Rowen has also been appointed to work on Heathrow's Terminal 5, although this is not included in the current order book.