<p>Steel & Tube Holdings Limited recently reported a 14% year on year increase in revenue for the first four months of the financial year (to the end of October 2021). The Company is now providing guidance for the six months to 31 December 2021. Earnings before Interest and Tax is expected to be above NZD 17 million, compared to NZD 8.9 million in the prior comparative period (pcp). Earnings before Interest, Tax, Depreciation and Amortisation are expected to be at least NZD 26.5 million (pcp: NZD 16.8 million).</p><p>The significant uplift in expected earnings is being driven by volume growth in target segments and positive market conditions, improved gross margin disciplines and continued reduction in percentage operating costs. This guidance assumes no return to lockdowns before 31 December 2021 and is subject to any impact of the recent IFRS Interpretations Committee agenda decision on Software as a Service.</p><p>Steel & Tube CEO Mr Mark Malpass said "We are seeing the benefit of improvements made to the business over the last few years, combined with a backdrop of robust economic activity. Market conditions look to remain positive for at least the medium term as the economic cycle is expected to be stronger for longer. The current residential boom is expected to moderate, while industrial building, infrastructure and manufacturing are all expected to continue to grow."</p>
<p>Steel & Tube Holdings Limited recently reported a 14% year on year increase in revenue for the first four months of the financial year (to the end of October 2021). The Company is now providing guidance for the six months to 31 December 2021. Earnings before Interest and Tax is expected to be above NZD 17 million, compared to NZD 8.9 million in the prior comparative period (pcp). Earnings before Interest, Tax, Depreciation and Amortisation are expected to be at least NZD 26.5 million (pcp: NZD 16.8 million).</p><p>The significant uplift in expected earnings is being driven by volume growth in target segments and positive market conditions, improved gross margin disciplines and continued reduction in percentage operating costs. This guidance assumes no return to lockdowns before 31 December 2021 and is subject to any impact of the recent IFRS Interpretations Committee agenda decision on Software as a Service.</p><p>Steel & Tube CEO Mr Mark Malpass said "We are seeing the benefit of improvements made to the business over the last few years, combined with a backdrop of robust economic activity. Market conditions look to remain positive for at least the medium term as the economic cycle is expected to be stronger for longer. The current residential boom is expected to moderate, while industrial building, infrastructure and manufacturing are all expected to continue to grow."</p>
