Island Steel Trading With Gwent On ‘commercial Terms’

Newport-based Island Steel traded with Gwent Steel on “normal commercial terms” during the year ended June 2021, the former said in its latest results filing to Companies House.
Island Steel is owned by father and son Alan and Alex Roberts, and Alan is also the owner and director of Gwent Steel.
Island sold £831,167 worth of goods to Gwent during the year and owes it £603,745 in cash. Gwent Steel was incorporated in the UK in December 2020, and when some customers had orders rerouted from Island to Gwent, it sparked concern over the financial health of the company.
Island’s turnover fell from £51mn in January 2019-June 2020 to £24.7mn in July-June 2021, despite steel prices reaching record highs. UK hot-rolled coil assessment reached a high of £997.50/t this June, whereas it touched a nadir of £385/t in the same month of last year. Island returned a profit of £985,497, up from a loss of £4.6mn in the previous 18 months.
The company took a government grant of £107,689 during the year ending June, and the pay of the two directors fell from £615,696 each in the previous 18 months to £219,070 each.
Island also sold £843,571 worth of goods to Acato Profiles, of which Alex Roberts is the director, and purchased goods and services worth £683,318 in return. The company also trades with Acato on normal commercial terms, it said. In its latest filing to March 2020, Acato was listed as a dormant company.Leumi ABL took debenture over the Island Steel site in August.