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UK steel distributor Barrett Steel profits plunge in 2015-The 17th China(Guangzhou)Int'l Stainless Steel Industry Exhibition
1/13/2016 Stainless Steel Industry expo |
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Yorkshire Post last week reported that UK based independent steel distributor Barrett Steel saw its profits plunge as turmoil in the sector continued. Pre-tax profit fell from GBP 8.8 million to GBP 1.3 million, after interest and restructuring costs, at Bradford-based Barrett while operating profit, before restructuring costs, fell from GBP 10.9 million to GBP 6 million for the year ended September 30, 2015.
Turnover also dropped, by nine per cent, to GBP 284.9m despite volumes increasing during the year by one per cent.
Mr Roy Butcher, chairman of Barrett Steel, said: ¡°The year ended September 30 has seen a continuing reduction in steel prices and a very challenging market in the oil and gas sector resulting in a decline in profitability during the year.¡±
Mr Butcher said in a statement that Barrett Steel, which employs 1,150 across the group, expects the uncertainty to continue in the sector at least until late 2016. He said ¡°The market remains uncertain in the oil and gas sector leading to the announcement in late November to close both the Forge in Newcastle and the Machine Shop in Ayr.
He added ¡°We remain committed to our core stockholding and added value oil and gas business developed over the last five years though we do not see any signs of recovery likely until 2016/early 2017.¡±
However the group said that there was no signs of demand diminishing in its traditional construction market.
Mr Butcher added: ¡°We continue to invest in added value processing equipment in our traditional markets wherever we see an opportunity.¡±
The British steel industry has been pummelled by the strength of the pound, high electricity prices and increased competition from China.
-stainless-steel-The 17th China(Guangzhou)Int''l Stainless
Steel Industry Exhibition
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