Steel and manufacturing company Steel & Tube (STU) has posted a record full-year profit, on the back of higher sales and better margins.
Photo: Steel & Tube / Lindsay Keats
Key numbers for the year ended June compared to a year* ago:
*Steel & Tube's 2021 results have been revised following a change in account policy.
- Net profit $30.2m vs $15.1m
- Revenue $599.1m vs $480m
- Underlying profit $66.6m vs $38.6m
- Final dividend 7.5 cents per share vs 3.3 cps
STU chief executive Mark Malpass said the company had been able to source, supply and deliver products to its customers in a time manner, despite volatile steel prices, rising costs and supply chain disruptions.
"We are seeing the benefits of our focus on operational excellence and supply chain management which has allowed us to control costs and deliver improved performance in a more challenging environment."
Sales volumes rose by 5.7 percent over the year to 167.2 kilotons, reflecting increased demand for the company's broad range of steel products.
The company's distribution business did much of the heavy lifting over the year, as margins increased, revenue rose by close to $100m to $383.m and it represented 64 percent of group revenue (up from 59.6 percent).
The infrastructure division recorded a 10 percent increase in earnings to $215.7m however margins fell by 50 basis points to 18.5 percent, as it felt the most impact from various Covid-19 restrictions and the subsequent delays to many infrastructure and large commercial projects.
Malpass said the company was still focused on growth and building a more diversified business.
He pointed to the company's recent investments to expand its plate processing capability and the acquisition of businesses in the fastening and fire and water reticulation sectors as examples.
Looking ahead, the company said there would be strong demand for steel at their current elevated prices, despite the effects of rising inflation.
STU chair Susan Paterson said the company had been operating for nearly 70 years and had successfully navigated numerous economy cycles.
"The company is well positioned to respond to the changing environment and to take advantage of new market and product opportunities."
