THE owner of a Bolton steelworks has said it will deliver "significant increases in both profits and margins" for the full year to December 31.

In a trading update, Thirsk-based Severfield-Rowen, which owns Watson Steel in Lostock, said: "In its half year announcement of September 26, 2006, the group referred to current trading being ahead of management's expectations.

"This persisted through to the end of the year and as a result management now expects profit before tax to be materially ahead of current market consensus."

The statement added that the group continues to operate in a buoyant market, which is experiencing a high demand for large scale projects. As a result the company is "confident" of its prospects for 2007.