Sharechat Logo

Steel & Tube Holdings Limited (NZX: STU) Earnings Guidance 1H FY22

Friday 19th November 2021

Text too small?

Steel & Tube Holdings Limited (NZX: STU ) recently reported a 14% year on year increase in revenue for the first four months of the financial year (to the end of October 2021). The Company is now providing guidance for the six months to 31 December 2021. Earnings Before Interest and Tax (EBIT) is expected to be above $17 million, compared to $8.9 million in the prior comparative period (pcp). Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) is expected to be at least $26.5 million (pcp: $16.8 million).

The significant uplift in expected earnings is being driven by volume growth in target segments and positive market conditions, improved gross margin disciplines and continued reduction in percentage operating costs. This guidance assumes no return to lockdowns before 31 December 2021 and is subject to any impact of the recent IFRS Interpretations Committee agenda decision on Software as a Service (SaaS).

Steel & Tube CEO, Mark Malpass, commented: “We are seeing the benefit of improvements made to the business over the last few years, combined with a backdrop of robust economic activity. Market conditions look to remain positive for at least the medium term as the economic cycle is expected to be stronger for longer. The current residential boom is expected to moderate, while industrial building, infrastructure and manufacturing are all expected to continue to grow.”

“Steel & Tube has the largest offering of steel products in New Zealand and we have invested in inventory, particularly essential, high demand products. Our focus remains on customer service, continued digital offerings, growing sales in attractive segments and gross margin dollar improvement. We have a strong pipeline of secured work in place and are well positioned to take advantage of opportunities.”

The company is not providing guidance for the second half of the financial year at this stage, given the ongoing uncertainty surrounding Covid-19 impacts. The company notes that there are seven (6%) less trading days in the second half of the financial year.

Please see the link below for details

Steel & Tube - Earnings Guidance 1H FY21

Source: Steel & Tube Holdings Limited



  General Finance Advertising    

Comments from our readers

No comments yet

Add your comment:
Your name:
Your email:
Not displayed to the public
Comment:
Comments to Sharechat go through an approval process. Comments which are defamatory, abusive or in some way deemed inappropriate will not be approved. It is allowable to use some form of non-de-plume for your name, however we recommend real email addresses are used. Comments from free email addresses such as Gmail, Yahoo, Hotmail, etc may not be approved.

Related News:

SML - Synlait Milk Limited - Trading Halt of Securities
AIA - Auckland Airport announces board chair changes
AIA - Auckland Airport announces board chair changes
CEN - Tauhara commissioning progress update
FPH initiates voluntary limited recall
March 28th Morning Report
KFL Celebrates 20 Years of Excellence in Investment Mgmt.
SVR - Savor FY24 Earnings Guidance & Change in Banking Partner
NZK - NZ King Salmon Investments Limited FY24 Results
March 27th Morning Report