A STEEL firm says lucrative contracts have pushed it closer towards a return to profit.

British Steel expects full-year finances to reflect the beginnings of its transformation.

The business was formed earlier this year from Tata Steel’s loss-making Long Products division, and bosses have since announced a number of investments in plants to maintain its momentum.

The company, owned by investor Greybull Capital, has also secured notable contracts, including a deal for its Teesside Beam Mill, near Redcar, to roll steel for Scunthorpe United’s new 12,000-seat football stadium.

That site will also process structures for new London skyscrapers.

Roland Junck, British Steel chief executive, said: “I am delighted to announce we have hit our targets and returned the business to profitability in our first 100 days as an independent company.

“These results are testament to the hard work of our employees and their determination to implement the turnaround plan.”

British Steel paid Tata £1 for Long Products and has since taken on 270 staff, including 48 apprentices, across its UK-wide operations.

It has also worked with organisations including Network Rail and Caterpillar, based in east Cleveland.

Neil Anderson, managing director at Caterpillar Skinningrove, said: “I am confident we can make both businesses more competitive in the future.”

However, Mr Junck cautioned the steel industry still faces many challenges.

He said: “We remain in constructive dialogue with the Government about the strategy needed to support British Steel and ensure it is operating on a level playing field.”