Solid framework at steel group sees profits rise 91%

STEEL group Barrett Steel has enjoyed a healthy jump in pre-tax profits to £8.8m on the back of the recovery in the construction market.

Turnover increased 14% to £312m in the year to September 2014, with exports performing strongly, up 44% to £44.2m.

The group, which is headquartered in Bradford, is made up of 42 companies operating from 28 locations across the UK and is divided into four divisions: general steels, engineering steels, tubes and international. It is the UK’s largest independent steel stockholder.

Roy Butcher, non-executive chairman of Barrett Steel, said the group had seen an improvement in demand but margins were affected by declining steel prices throughout most of the year.

He said: “We are hopeful that the signs of recovery in the traditional construction market will continue into the new financial year although the rate of the recovery has seen some slowdown in recent months.

“We remain confident that the improved demand seen by the Tubes Division in a number of its traditional transport and automotive markets will continue into 2015. We have made significant investments in the oil and gas sector over recent years and intend to continue this strategy in Houston which continues to perform ahead of the original plans.

“Whilst there have been positive signs in the UK both in demand and in general economic improvement the need for growth in the global economy remains the key factor for sustainable profitability for the worldwide steel industry.”

The group continued to invest in the core businesses during the year. It purchased additional freehold land and buildings in Houston, Texas, and Maghaberry, Northern Ireland, both for £1m as part of a £9.8m capital investment programme.

The company, which is 150 years old next year, has been located on the same site in Bradford since 1910.

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