British Steel delivers first year profit

British Steel has reported a profit for the first year as an independent business since being sold for £1 by Tata Steel.
The company, which is primarily based at the Scunthorpe steelworks posted £47M in earnings before interest, tax, depreciation and amortisation in the 12 months ending 31 March.

British Steel Executive Chairman Roland Junck said: “In 12 months we have started transforming from an inward-looking production hub into a profitable, more agile business by controlling costs, improving our product range and quality, and through strategic investments.”

The buoyant results at the company, which was acquired by the investment firm Greybull Capital exactly a year ago, will renew hopes of a sustainable long-term future for the UK steel making industry.

The company has also launched an employee share scheme that will give the workforce a 5% stake in the business. Full pay will be restored to workers who had agreed to a temporary 3% salary sacrifice to help the turnaround efforts.

Scunthorpe Multi-Union Chairman Paul McBean said: “The share scheme and reinstatement of employees’ full salaries are both deserved and welcomed. I’m also pleased to see British Steel is continuing to make the significant capital investments this business needs but, people should be in no doubt, a lot of hard work lies ahead.”