British Steel has recorded its best performance in a decade, declaring a £47 million profit.
The company, which has a steelmaking site in Scunthorpe, reported a £126 million turnaround in its first year as an independent business.
British Steel was acquired by family investment office Greybull Capital LLP in June 2016, after The Long Products Europe business – formerly owned by Tata Steel – had recorded a £79 million loss in the previous financial year.
Workers have been forced in the last year to take a pay cut of 3% but have now been given a 5% stake in the business.
British Steel has employed 500 new workers in the last year, with a further 50 set to join this month.
A £40 million capital investment programme will also take part this year.
Roland Junck, British Steel executive chairman, said: “The transformation in this business is remarkable and that is down to our remarkable people who have embraced, engineered and led change.
“They are the reason 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.
“I’m delighted to be able to confirm that our employees will return to full pay today having sacrificed 3% of their salary to make last year’s sale and the turnaround plan possible.”
Scunthorpe multi-union chairman Paul McBean added: “Exactly one year ago I hailed our employees for making the launch possible. Today I praise them in equal measure 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 intent on delivering and that’s what the new government must support because today’s news isn’t mission accomplished.
“The share scheme and re-instatement of employees’ full salaries are both deserved and welcomed.
“I’m also pleased to see British Steel is continuing to make the significant capital investments this business needs but people should be in no doubt, a lot of hard work lies ahead.”