Steel products manufacturer Steel & Tube lifted earnings 10 per cent in the six months to Dec. 31, turning in a tax-paid net profit of $8 million on a 6 per cent lift in sales to $211.7 million.
However, margins remain tight and despite the Christchurch rebuild, booming residential construction and a strong rural sector, the company warns the steel market remains highly competitive. It held margins during the period, but improved performance came from volume growth.
Directors declared a fully imputed interim dividend of 7 cents per share, payable on March 31.
Despite improved NPAT, the company showed negative cashflow of $4.5 million for the six months, compared with positive cashflow of $1.2 million for the same period a year earlier, driven in part by a 13.2 per cent lift during the period in payments to suppliers and employees, totalling $214.2 million. Customers' receipts in the period rose 3.5 per cent to $216.9 million.
Cash and cash equivalents at the end of the period were negative $8.1 million, compared with a positive cash position of $2.4 million a year earlier.