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Written by Steel & Tube
on February 20, 2024

Today we released our interim results for six months ended 31 December 2023. Our team has continued to work hard in a challenging market, delivering a solid result at the top end of our guidance.

Our focus on our dual pathway strategy is driving our performance and it’s particularly pleasing to see the strategic investments we have made over the last two years into high value products and services and acquisitions continue to perform strongly. We see many opportunities to continue to grow our business, both organically and through acquisition.

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We’ve continued to focus on ‘controlling the controllables’ while providing high levels of service to our customers. Given the current recessionary environment, balance sheet strength and tight cost control is essential – we ended the six months with no debt and a positive cash balance of c.$26m, reduced our inventory and offset inflationary pressures with cost efficiencies.

Steel may not be sexy but it is essential. It’s a vital construction material for everything from residential houses and commercial buildings to public infrastructure. It’s infinitely recyclable, durable, flexible and offers a number of advantages in a future where climate change and extreme weather are likely to become more common.

We have a great team of committed and talented people working across our network with significant expertise and experience, and we’re well positioned to provide the steel New Zealand needs as the economy recovers.

Results Snapshot

  • Normalised EBIT $11.3m and Normalised EBITDA of $21.9m - at top of guidance
  • Limited the impact of a softer market – volumes down 5.1% on 2H23 with revenue of $261.8m, down 4.4%
  • No bank debt and cash balance of $26.3m
  • Further reduction in inventory to $128.6m
  • Net Profit After Tax $5.3m
  • Dividend 4 cents per share, fully imputed, providing a gross dividend yield of 10.3%

Steel & Tube’s full Announcement and Interim Report are available on the NZX  here.


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