Questor share tip: Severfield-Rowen needs to build bridges Severfield-Rowen also insists profits should still grow this year. Analysts at Jefferies say the consensus forecast in the City for the company's annual profits is now likely to fall £1.5m to £11m but agree profits will be ahead of the £10.1m reported in 2011. On a purely valuation basis, Severfield-Rowen looks attractive. It is trading at 13.1 times 2012 earnings and 10.8 times 2013 earnings. The dividend yield is 4.2pc. However, Questor does not believe this valuation is cheap enough to justify investing in Severfield-Rowen while the outlook for the construction industry in the UK is uncertain. In a trading update last month, Severfield-Rowen warned of "very tough" conditions in the UK and that a recovery in its markets "is still distant." The company undoubtedly has a fine track record having worked on projects such as the Shard, Olympic stadium and the roof for Centre Court at Wimbledon. There is also optimism in the City about its new Indian joint-venture. However, the shares have been sliding since clearing 300p in January 2011. With a questionable outlook for the sector and negative sentiment now surrounding the shares, there could be a cheaper opportunity to invest in Severfield-Rowen in the coming months.