Profits slump at UK’s biggest steel stockholder

Aaron Morby 6 months ago
Share

The slide in worldwide steel prices has delivered a body blow to Bradford-based steel stockholder Barrett Steel.

Barrett steel
Barrett Steel believes period of prolonged price reductions is coming to an end

Pre-tax profits at the UK’s biggest independent stockholder plummeted to £1.3m in the year to September 2015 from £8.8m previously.

The firm, which employs over 1,000 staff in 29 UK outlets, suffered a £2.4m hit in restructuring costs, predominantly from redundancy payments but also from write downs caused by the closure of its forge in Newcastle and machine shop in Ayr.

Steel stocks remained stable at 94,000 tonnes, although its value fell 14% on the previous year due to cost price falls.

Despite volumes of sales rising 1% over the year turnover slid 9% to £285m.

Another tough year did little to help attempts to reduce net debt which edged up to nearly £63m.

Chairman Roy Butcher said Barrett Steel’s bankers remained supportive with facilities now in place until May 2017.

“While the market conditions remain very challenging there are no current signs of demand diminishing in our traditional construction market.

“We do believe we are getting towards the end of the prolonged period of price reductions with scrap and iron ore prices appearing to be very close to the bottom of their price cycle.”

He added: “The recent announcements from Tata, SSI and Capro give an indication of the pain being felt by the worldwide steel industry at present with prices at current levels.

“The impact of worldwide over capacity must inevitably lead to capacity reductions.

“The company continues to have the support from its suppliers and remains confident of our continuity of supply through good relationships built up over the years.”

 

Latest news

G F Tomlinson scoops £15.9m Nottingham Uni job

Advanced manufacturing building will be constructed at the University's Jubilee Campus
11 hours ago

Kier wins bid race for £25m Mackintosh restoration

Kier beats rivals with "extremely competitive" bid for fire-damaged building
15 hours ago

Balfour Beatty chief’s wife buys £200,000 company shares

Quinn holding in construction group rises to 0.7%
19 hours ago

Willmott Dixon abandons sale of support services arm

Contractor decides to keep division after bidders wanted to break-up maintenance operation
2 days ago

Firm fined £550,000 after two men fall to their deaths

Couple fell through Euston roadside hoarding into building site basement
20 hours ago

Redrow reports buyers unbowed by Brexit

House builder expects strong year-end profits after completions rise 17% to nearly 5,000
20 hours ago

HS2 phase one opening could be delayed a year

Spending watchdog warns HS2 timetable unrealistic despite good progress on procurement
19 hours ago

Murphy finance chief becomes new Barhale CEO

Matthew Behan to lead contractor as new corporate structure established to broaden portfolio
1 day ago

£10,000 prize to cut roadwork disruption and delays

Amey and Staffordshire council seek smart digital solutions to roadwork traffic delays
20 hours ago

Currie & Brown trumps WSP bid for Sweett Group

WSP raises prospect of a bid war as it tells Sweett shareholders to sit tight
2 days ago

Suppliers hit as HOC goes into administration

Redundancies at north London firm as subcontractors left in dark
2 days ago

Student digs developer shrugs off Brexit worries

Empiric confident EU vote will have limited impact on expanding sector
2 days ago

Brexit leaves Heathrow third runway in the air

Fears grow about the future of major infrastructure projects
2 days ago

Bid costs dent Hochtief UK profits

Operating margin drops to 0.7% as profit falls 45% to below £1m
2 days ago

Breakaway trade body formed by rebar producers

Independent rebar producers and suppliers split with BAR
2 days ago

Sinkhole closes busy stretch of A1

Contractors pumping huge hole with concrete in bid to reopen route
2 days ago

Lendlease to start £275m Hammersmith scheme

Construction to start next month on major office project
5 days ago

Contractors call for calm as Brexit victory spooks markets

Construction fears over costs, skills and investment as house builder shares crash
5 days ago

Shepherd Group suffers £74m hit from sold building arm

Strong profits at remaining Portakabin business help to cut group loss to £28m
5 days ago

Bidding set to start on £2bn East London cultural quarter

London Legacy Development Corporation set to procure shell and core work
5 days ago

Building worker critical after being crushed by JCB

Digger at Hebburn housing site believed to have reversed into worker
5 days ago

Plant test cheats website dodges closure threat

CITB chiefs battling to close down site undermining tests for machinery drivers
6 days ago

Green light for £18m Midland Metro extension

Preparatory utility diversion works to start immediately
6 days ago

Hill wins approval for £100m east London housing scheme

Work to start on Walthamstow triple towers this autumn
6 days ago

Construction workers win inflation busting pay rise

Deal agreed but unions warn pay agreement is "no longer fit for purpose"
6 days ago

Cameron resigns as exit vote sends markets crashing

New Prime Minister to be elected by October
5 days ago

Costain to use more drones to make sites safer

Unmanned aerial vehicles can take on hazardous tasks
6 days ago

Bowmer & Kirkland profit jumps by almost half

Derbyshire private builder lifts profit to nearly £40m
6 days ago

Plans for £250m Liverpool resi towers trio

Liverpool developer Elliot plans cluster of 34-storey towers
6 days ago

Specialist wins low road tender court hearing

Judge rules against public client who rejected "abnormally low" bid from FP McCann
7 days ago