August 12 2016
Full-Year results and dividend
Steel & Tube’s revenue improved three per cent to a record $516 million. Net operating cash flow also increased to $25.1 million and is up on the 2015 result.
Net profit after tax for the year improved by 20.5 per cent to $25.8 million, reflecting a previously reported $6.4 million tax affected gain on sale from the Bowden Road property in Auckland. Underlying profit is $19.4 million and is higher than the range given in the guidance in May.
This was achieved in a particularly challenging environment with global steel prices at 13-year lows at the year’s midpoint, ongoing price volatility and intense competition in the domestic steel market, says chief executive Dave Taylor. The second half results include a one-off cost impact in relation to product quality issues.
The final dividend for the year is a pleasingly 13.5 cents per share.
Building on strong foundations
The continued execution of the company strategy through the financial year has positioned Steel & Tube well, creating strong foundations as shown by the year’s performance in-spite of the challenges of low global steel prices and questions around some product quality, says Mr Taylor.
“Despite the headwinds we’ve experienced and particularly in the second half of the year, our results demonstrate our resilience and ability to continue delivering sustainable value.”
The recent acquisitions of Manufacturing Suppliers Ltd (MSL) and Aquaduct with its sister company Bosch Irrigation bring new capabilities as we continue to deliver on our strategic objectives, he says.
“These acquisitions along with the strong foundations already within the business continue to position Steel & Tube for ongoing growth momentum in our key markets.”
Mr Taylor is confident about Steel & Tube’s future. “While we remain in a challenging global steel environment, steel prices are firming both domestically and globally. When coupled with a relatively robust domestic economy, we are optimistic that we’ll see a stronger performance from the business in our next trading year.”
For further information contact Tanya Katterns, Steel & Tube Communications Manager: 04 570 5048 [email protected]
About Steel & Tube:
Steel & Tube is New Zealand’s leading supplier and distributor of steel products and services. We import, distribute and manufacture around 58,000 steel products – from nuts, bolts, nails, piping, roofing, seismic mesh and farm fencing, to the largest structural steel products used in commercial construction, such as purlins, girts, joists and universal beams. From our head office in Petone, we support a network of 56 processing and distribution facilities in locations across the country. Our key industry sectors include commercial, infrastructure and residential construction, manufacturing, heavy and light engineering, energy, viticulture and rural.