Profits at Bradford-based steel stockholder Barrett Steel Group bounced back last year in the face of challenging trading conditions and the company remains confident about future prospects.

The UK’s largest private steel stockholder, whose head office is at Dudley Hill, saw pre-tax profits leap by nearly 50 per cent from £3.1 million to nearly £4.6 million turnover rose by five per cent from £216 million to £273 million.

During the year to September 30, Barrett Steel, which operates 42 subsidiaries around the UK, also pushed up export sales by nearly 13 per cent from £27.3 million to £30.7 million.

The family-owned group, which dates back to 1861, also has processing and manufacturing operations, ranging from a cutting steel bars to size to large structural components which need to be cut, drilled, shot-blasted and primed.

Barrett Steel made £7 million of investment during the period, including buying the freehold to its site in Burton uopon Trent and upgrading its plant and machinery and vehicle fleet.

It also opened a stockholding and processing operation in Houston, Texas, as part of its focus on the oil and gas sector which it sees as key to growth.

The company recently launched the Barrett Energy Products Division to serve the global energy markets, bringing together several UK and US-based facilities under a new banner.

Divisional managing director John Childs said: “We strategically made the move into the oil and gas sector four years ago and have had year-on-year growth ever since.

“With continued investment in both people and equipment, the new division gives us a corporate identity that supports our vision of becoming a world leader as a solution provider for the energy industry.”

Roy Butcher, chairman of the business which has four divisions – general steel, engineering steel, tubes and international – said he was encouraged by the results but warned that the construction market remains challenging and commodity prices are volatile.

He said: “The traditional construction market served by the company, whilst showing some limited signs of recovery, remains a challenge.

“It remains evident that most producers continue to suffer financially, which may lead to restricted production capacity in the future.

“The current trading year has started with further pressure on prices though demand generally remains reasonable. We remain optimistic for the remainder of the year.

“Despite a challenging construction market Barrett Steel’s turnover has risen and we have continued to invest in capital projects, including energy efficiency.

“As part of our long-term growth strategy we have made significant investment in the oil and gas sector with the launch of the new energy products division and further developments at the Houston, Texas depot.”

Barrett Steel was recently named among Britain’s private companies with the fastest-growing international sales, being the highest placed of 19 Yorkshire companies to feature on the Sunday Times HSBC International Track 200 league table.