Barrett Steel looking to add value overseas

BARRETT Steel is focusing on developing more business overseas as the uncertainty in its markets continues to hit its business.

The Bradford-based steel stockholder enjoyed a 7% increase in revenues to £261m from £244m while pre-tax profits dropped because of costs involved in redundancies across its business.

After exceptional items and interest pre-tax profits were £3.1m in the year to September 30, 2012 compared to £6.9m the previous year.

Roy Butcher, chairman of the family-owned company, said the year had been “difficult” with further problems for the steel stockholding industry.

“UK construction activity continues but at modest levels with no perceptible growth. Steel sold into markets for engineering applications, particularly those focused on exports, is supporting the underlying demand for steel.”

He said at the year end the group had increased its stocks to 67,000 tonnes with a value of £53.2m.

“Until there is a sustained improvement in both the European and world economies it appears unlikely that the steel industry will return to prior levels of profitability.”

Mr Butcher said that the group was focused on adding value to its products for customers to help them compete in difficult markets.

“Initial results suggest that a receptive market also exists for these services overseas and the board believes that development of these markets is a key strategy for the longer term.”