Monday 10th August 2020
|Text too small?|
Steel & Tube Holdings Limited (NZX: STU ) has today provided a trading update and forecast for its FY20 results which are due to be announced on Friday 28 August 2020. Details of the FY20 results investor call will be released shortly.
• FY20 normalised EBIT (Earnings Before Interest and Tax)1 is expected to be approximately break- even subject to completion of audit work. On a pre-NZ IFRS 162 basis, FY20 normalised EBIT is expected to be a loss of approximately $5m to $7m.
• STU expects to report strong operating cash flows of approximately $26m (pre-NZIFRS 16) on the back of continued working capital discipline, with inventory significantly reduced to approximately $101m at 30 June 2020.
• STU’s balance sheet remains strong with the Group expecting to report net cash of approximately $7m at 30 June 2020.
• Post-balance date, STU has completed the sale of a surplus Gisborne property with net proceeds of $1.3m to be applied to further reducing borrowings.
• In addition to waivers of existing bank covenants for 30 June and 31 December 2020, STU has also agreed temporary revised covenants with its bank syndicate for the remainder of FY21, which it expects to comfortably meet.
• The COVID-19 Alert level 4 lockdown and then progressive return to more normal business operations occurred during a traditionally high earning period for the business. Post lockdown, sales recovered through May and in June were in line with the prior year.
• As previously advised, STU expects to report a significant loss for FY20 after including a $37m non-cash impairment of goodwill recognised in 1H20, and other write-downs due to the acceleration of branch network changes (including site consolidations), business restructuring and digitisation in response to anticipated post Covid-19 market conditions.
No comments yet
New Bond Issue Market Looking Very Upbeat
General Capital to Broadcast Adjourned Annual Meeting
Kathmandu announces FY20 Annual Results
EROAD opens NZ$8 million Share Purchase Plan
Refinery simplification plan update
Heartland announces FY20 full year results
Geo Limited releases its FY20 Annual Report
Michael Hill International Limited announces 2020 annual report
Tower supports climate risk reporting
Tourism Holdings Limited Updated FY20 guidance