SEVERFIELD-Rowen, the Thirsk-based structural steel company, has warned profit will be hit by an overspend of £1.6 million.

The business announced today that there had been operational overruns  against its estimated costs on two complex  projects in the UK.

Profit before tax in the first half is now expected to be about £1.5 million, it said.

In a trading update posted on the London Stock Exchange, it said: "Our performance for the full year remains well supported by our strong order book, anticipated full capacity utilisation and good project mix in both the UK and India.

"While we still expect to deliver profit growth year on year, profit for the full year may be lower than current expectations. "