Dent Steel Services is to receive a £950,000 insurance payout as a result of the receivership of the Cammell Laird ship builder.

The Bradford company supplied Cammell Laird with more than £3 million worth of steel last year and had a global contract with the firm.

The ship builder was forced to go into receivership in April after the Italian cruise company Costa Crociere cancelled its £50 million contract to refit one of its largest ships, Costa Classica, at Cammell's Merseyside plant.

Dent's general manager Steve Spencer admitted the cancellation of the contract had been a 'bolt out of the blue' but it would not affect the long term running of the company.

He said: "There was no delay in the payout from Euler Trade Indemnity. Even if there had been it wouldn't have been the end of the company, although we would have had to make considerable changes.

"Cammell Laird was our largest customer and we had a contract to supply the whole of the group, we probably did more work with its Tyneside operation than the one on Merseyside.

"It's not a case of we are £3 million down on revenue because of the cancellation

"We have already carried out a certain amount of business this year and we are doing business through the Cammell Laird receivers.

"I believe the company will be back buying steel in one shape or another, the long-term effects won't be disastrous for us."

A spokesman for Euler said the recovery of and receipt of the claim meant Dent Steel, based in New Works Road, Low Moor, was able to maintain its cash flow and avoid the knock on effects of the Cammell Laird closure.

The cheque will be handed over tomorrow at the Dent factory.