British Steel edges into the black as workers handed shares

British Steel, sold for £1 last year, scraped through a sales crunch to deliver its first profit in 10 years today.

The company’s 4800 steelworkers will also be given a stake worth 5% under a new share deal.

Earnings were chalked up at £47 million for the year ending March 2017 after a £79 million loss last year.

“There’s still a lot to be done,” said executive chairman Roland Junck, who admitted the profits, which do not include heavy financing costs, were “not enough”. Revenue was lower at £1.2 billion, due to higher coal costs which is used in production.

The Scunthorpe steelworks hit the headlines when the 2015 steel crisis (pictured) forced former owner Tata to pull back from the UK.

Buyer Greybull sought to cut costs to trigger a turnaround.

Junck said an “entrepreneurial spirit” was starting to flow through British Steel.

He added changes to business tax rates and electricity costs, which are higher than rival steelmakers on the continent, could spur a quicker turnaround for British Steel.