£50m rights issue for Severfield-Rowen

Severfield-Rowen, the UK's biggest structural steelwork company, has unveiled a rights issue to raise nearly £50m to help give it more breathing space from its lenders, following a "very difficult" 2012.

The group, which parted company with its chief executive Tom Haughey in January, last month posted a pre-tax loss of £23m for 2012. Its work on London's Leadenhall Building, known as the Cheesegrater, has been particularly problematic and has overrun.

Severfield-Rowen said the seven-for-three shares rights issue would raise £44.8m and enable it to strengthen its balance sheet. It had net debt of £29.7m in December.

Severfield-Rowen, which has worked on high-profile projects such as the Olympic velodrome, pictured, has lost about two-thirds of market value in the past year. Its shares fell 4.9 per cent to 68p.