British Steel reveals £126m turnaround on first birthday
By Scunthorpe Telegraph | Posted: 1 Jun 2017
On its first year as an independent business British Steel has announced a turnaround of £126 million.
The company celebrated its first birthday today with an announcement of the turnaround and has also reported a £47 million profit.
As well as the profit announcement, the company has also offered five per cent in shares to its 3,000 strong workforce.
Paul McBean, Scunthorpe multi-union chair, said: "Exactly one year ago I hailed our employees for making the launch possible. Today I praise them for giving us a fantastic platform upon which to build.
"It's not been easy but Britain needs a thriving steel industry. That's what we're intending on delivering on and that's what the new government must support because today's news isn't mission accomplished."
The reported profits of £47 million for the 12 months ending March 31, 2017, is the company's best performance in a decade.
The profits come despite an increase of 44 per cent in raw material costs.
British Steel chief executive Peter Bernscher
British Steel executive chairman, Roland Junck, said that the transformation has been remarkable and that it is down to the people of the company that have led the change.
"They are the reason that we can today reveal the best financial performance in the long products business since 2007 and they are the reason I have great optimism for the future of British Steel."
Recently appointed British Steel chief executive, Peter Bernscher, said that the turnaround is "just the beginning."
"To guarantee our future as a sustainable business for decades to come we must now seize and capitalise on the opportunities that have been created," he said.
He added that "maximising and growing" British Steel's steel making capability will be key for the companies future growth.
"While the challenges the UK steel industry has faced over the last decade have not gone away, we continually respond to the market and stay flexible in an effort to overcome them," he said.
The company has also announced that it has completed a deal for a 50 per cent stake in the Redcar Bulk Terminal from Tata Steel.
The deal comes as part of the original purchase of the Long Products Europe business.