Steel & Tube growing stronger on the back of robust first-half results
Key financial results
- The trading result for the six months to 31 December 2014 is an after-tax profit of $10.8 million
- Sales increased by $46.5 million to $258.2 million
- Net operating cash flow improved by $12.6 million to $10.1 million
- Net tangible assets per share were $1.58 compared with $1.56 at 31 December 2013
- An interim dividend of 9.0 cents per share has been declared and will be paid on 31 March 2015.
Steel & Tube’s half-year result for the six months to December 2014 reflect continued strong growth with sales, revenue and cash-flow all up on the same time last year.
CEO Dave Taylor, who heads New Zealand’s largest steel distribution company, credits the result to: “Hard work, an ongoing programme of significant operational change and our S&T Stainless acquisition, which continues to perform in line with expectations.”
Mr Taylor says the results are particularly pleasing when viewed against a global backdrop of increasing geopolitical uncertainty and financial market volatility alongside intense domestic competition.
“Construction has underpinned much of our increased activity and though this is likely to plateau, those parts of our business aligned to the sector are expected to continue delivering strong results.”
Significant projects undertaken this year include:
- Auckland’s Waterview Connection
- Christchurch’s Burwood Hospital
- Central Plains Community Irrigation Scheme
- Govett Brewster Art Gallery, New Plymouth
- The Waiarohia Stream bridge in Whangarei
Mr Taylor says the results demonstrate S&T’s ability to maintain earnings and revenue momentum while making significant investments in facilities, plant and connectivity to improve the customer experience.
An extensive $30 million reinvestment programme has seen new premises open in Palmerston North in November, bringing Processing, Distribution and Stainless operations under one roof.
Commissioning of a new Auckland-based facility at Otahuhu is underway and a second at Highbrook will enhance the company’s processing capability.
“These changes are yielding results,” says Mr Taylor, “And the company is positive about the second half of the year.”
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For further information please contact S&T Communications Manager Diane Robinson: 04 570 3290/027 569 1919
Note for editors:
Steel & Tube is New Zealand’s leading supplier and distributor of stainless and engineering steel products and services. We import, distribute and manufacture around 58,000 steel products – from nuts, bolts, nails, piping, roofing and farm fencing, to the largest structural steel products used in commercial construction, such as purlins, girts, joists, universal beams and seismic mesh. Our head office is based in Petone and we have processing and distribution facilities in 48 towns and cities across the country. Our key industry sectors are: commercial and residential construction, manufacturing, heavy and light engineering, energy, viticulture and rural.