Corus has returned to operating profit and was last night still resisting the advances of Russian entrepreneur Alisher Usmanov.

A representative of the metals company owner said that the Anglo-Dutch steelmaker's board of directors was on notice to improve performance.

Mr Usmanov's company, Gallagher Holdings, called off its campaign for a seat on the board at the 11th hour, but said it would not permanently rule out the idea of nominating a candidate.

Corus directors denied they were under siege from the Russian mogul, who owns a 13.39 per cent stake in the company.

Shareholders had been due to vote on the appointment of Dutch former steel executive Adrianus van der Velden at the annual meeting in London yesterday.

Corus opposed his candidacy on the grounds that it was an unwelcome distraction and a potential conflict of interest, since Mr Usmanov owns iron and steel plants in Russia's Ural mountains.

Chairman Jim Leng said he regretted the decision of Mr Usmanov not to withdraw the nomination permanently, but said: "I do not think we are under siege. Hopefully, this will be an end to it and we can move on." But this was disputed by investor Simon Cawkwell.

He said Mr Leng and other members of the board had the next few months to turn the company around or leave it exposed to a takeover bid.

Mr Cawkwell, a well-known City speculator, said a vote on the nomination of Mr van der Velden could have revealed the level of disenchantment among shareholders.

Corus last year cut annual losses to £305m and has drawn up a restructuring plan to return the company to financial health.

In a positive trading update, the company announced that it had raised prices to offset higher raw material costs caused by strong demand for steel in China.

But a key criticism levelled at the company by Mr Usmanov is that Corus has been able to improve its performance only because steel prices are so high.

Gallagher Holdings, whose sole shareholder is Mr Usmanov, last night said it retained a number of substantial concerns in relation to Corus.

Farhad Moshiri, UK representative of Gallagher, said: "The board should understand the extent of our concern at the strategic direction of the company and the lack of progress.

"We know these concerns to be shared by other shareholders. Against the backdrop of the strongest steel market in a decade, the company has continued to report substantial losses.

"The board is now on notice and we expect real change in the months ahead."