Slowdown takes toll on Severfield

One of Severfield's major projects is the new Heathrow terminal building

Structural steel firm Severfield-Rowen saw its shares dive after it warned of weaker-than-expected growth this year.

The company, which has fallen victim to a slowdown in the commercial property market, also said profits for 2007 would be lower than expected at £42m.

Based in Thirsk, North Yorkshire, the firm is currently making structures for Heathrow Airport's Terminal 5 and the new centre court at Wimbledon.

Only last month, it said it was "very confident" about prospects for 2008.

Olympics contract

Although new contracts have seen its order book swell to a record £440m, the company warned: "As we begin 2008 the group is seeing a softening within some of its key markets."

It added that growth would be "at a somewhat lower level than our previous expectations".

City analysts had previously predicted pre-tax profits of around £56m for the current year.

The group, which was founded in 1978 and has an 1,100-strong workforce, has been lined up to work on London's 2012 Olympic stadium.

Its other schemes include Exeter's Princesshay shopping centre, Glasgow's Victoria Hospital and a major distribution centre for supermarket chain Asda in Doncaster.