Steel & Tube updates first half forecast

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Steel & Tube’s first half result is expected to be stronger than expected with an improving economy and cost-cutting measures driving profit growth.

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The steel manufacturer’s underlying profit, excluding tax adjustments, for the six months ending 31 December was expected to be in a range of between $6.5 – $7.5 million, compared with the year earlier’s $5.7m.

“Covid-19 has made for a difficult year, however, we are pleased with our progress in the year to date,” chief executive Mark Malpass said.

“We have seen positive signs of economic activity with a number of new projects and longer-term contracts secured,” he said, adding the company had secured a solid pipeline of work, while supply chain disruptions had not significantly impacted the business.

He said revenue for the first five months of the period was down, but tracking close to the year earlier, with cost reductions and gains from the sub-leasing of property accounting for the profit growth.

The company’s cash position remained strong with about $24m at the end of November and zero debt.

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