Bosses at a Bradford-based steel supplies group are looking to exports to help the business maintain momentum as trading conditions remain tough in 2012.
Barrett Steel Group, based at Dudley Hill, increased turnover by nearly a quarter in 2011, which its chairman described as a year of mixed fortunes.
The group, which operates through three divisions covering general steel, tubes and engineering steels, boosted turnover from £197 million to £244 million in the year to September 30 as it increased steel sales from 260,000 tonnes to 270,000 tonnes.
A one-off charge of £863,000 connected to the acquisition of High Integrity Products Group helped to reduce pre-tax profits from £8.1 million to £6.9 million and gross margins also fell from 31.9 per cent to 28.3 per cent.
Company chiefs are anticipating that Barrett’s new operation in Houston, Texas, will outperform initial expectations. Barrett Steel Energy Products was established to serve oil and gas exploration in the Gulf of Mexico and Brazil and specialises in raw materials for tools and equipment.
The 33,000 sq ft Houston base was part of a total capital investment by Barrett of around £7 million during 2011. The group also installed a new plasma profiling machine in Rotherham, two new LT8 laser tube processing machines at Dudley, and a decoiling line at Barrett Strip & Alloys.
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