GREATLY-REDUCED steel prices affected the annual figures of Hi-Tech Steel Services, although it still reported a “significant turnaround”.

The St Helens-based steel stockholder and processor buys material off mills across the world and supplies the processed steel to manufacturers.

It reduced its pre-tax losses by more than £1.1m, to £524,000, in the year to June, 2010.

That was achieved despite an 8% fall in turnover, to £33.7m.

Hi-Tech Steel’s managing director Ian Gorman said: “Our tonnage shipped was up 12% year over year although our reported sterling turnover was down due to the much lower prices prevalent in the market.

“This encouraging trend is a great testament to the performance of all parts of our business during a period when we have reduced our workforce by 17%.”

The company’s efforts to rebuild its balance sheet has seen stock levels reduced by 30% which lowered its working capital requirement by £1.5m.

This allowed Hi-Tech Steel to reduce its bank overdraft by nearly £500,000 while developing new lines of credit with steel suppliers.

A focus on managing costs has seen the company achieve annual savings of more than £600,000, with further savings targeted.

Mr Gorman added: “We see the 2011 financial year as a year of consolidation which will see a return to modest profitability whilst we set our sights on tonnage growth in 2012 which will make significant inroads into returning shareholders’ funds to levels which justify the confidence placed in us by our shareholders and financiers.”

Shareholders’ funds stood at £736,000 at the year end, having reached £2.3m two years ago, before the downturn hit trade.

ALEX TURNER