- The latest newsletter of Steel & Tube Holdings sheds light on the Company’s new projects and long-term contracts secured by it.
- For the previous 6 month ending 31 December 2020, the Company anticipates reporting EBIT amid NZ$6.5 to NZ$7.5 million, higher than the pcp’s normalised EBIT.
- Steel & Tube Holdings cash position was robust with ~NZ$24 million by the end of November this year, with no debt.
New Zealand based company Steel & Tube Holdings limited (NZX:STU) is involved with construction work. The entity has an array of products, including 27k unique product lines in stock and more than 58k product lines available.
On 18 December, Steel & Tube Holdings published its Shareholders newsletter for the last month of the year following the trading update for the last five months period and half year prediction.
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Steel & Tube Holdings’ Shareholder Newsletter
As per Steel & Turbo’s Shareholder’s newsletter, the Company has made ground-breaking initiatives in the past 6 months. The purpose of the newsletter is to keep the shareholders in loop about the progressive functioning of the business.
The revenue earned in November was at par with that earned in the same duration the previous year. The EBIT was higher than that of the last year and the same was accredited to initiatives for cost reduction, as well as sub-leasing of properties.
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Trading update and HY forecast
As per the latest trading update, Steel & Tube Holdings recorded robust earnings in the first 5 months of FY21 till 17 December. It was further reported that, with about NZ$24M in terms of cash by November end, the position is strong and favourable for the company.
The performance update reports higher trade than expected since the end of Level 4 lockdown in March caused by COVID-19.
Mark Malpass, CEO of Steel & Tube Holdings is of view that even though the pandemic has posed a difficult challenge for the Company this year, the progress witnessed in the firm till date has been remarkable.
The economic activity has seen growth, together with novel long-term projects being acquired. He further added that the strong digital presence of the firm and a strong balance sheet are going to be path breakers in the current globally difficult times.
On the future projection’s front, for the last 6 month ending 31 December 2020, the Company anticipates reporting EBIT in the range of NZ$6.5 to NZ$7.5 million, higher than the pcp’s normalised EBIT, which stood at NZ$5.7 million (*2).
On 18th December 2020, Steel & Tube Holdings was at NZ$0.890, higher by 5.95% from its previous close.