Llanelli-headquartered metal stockholder Dyfed Steel returned to the black with pre-tax profits of £1.5m for the year to 31 January 2011, compared to a loss of £896,000 in 2010.
Turnover rose sharply, climbing to £56.6m from £38m last year.
The effects of the economic downturn, particularly the slowdown in the construction industry and a steep drop in steel prices, had resulted in a £12m drop in revenue at Dyfed for the year to January 2010.
The company acquired two steel businesses in 2009, Direct Steels and Bramford Steels, for £1.26m. Financial controller Daniel Thomas previously told Insider that both businesses were performing well and producing profit.
No dividend was paid for the year and the retained profit is to be transferred to reserves, Dyfed said in the latest accounts.
Formed 30 years ago by managing director and owner David Thomas, Dyfed has expanded to employ more than 303 workers, up from 260 last year, at seven sites throughout Wales and the South West of England.