Steel & Tube turns around to pay dividends again

AUCKLAND: Steel & Tube’s revenue dropped because of Covid but the company turned last year’s interim loss into a profit and has decided to resume paying a dividend.

Revenue fell 2.5% from $232 million last year to $226.3 million in the halfyear to December 31, 2020. Last year’s $37 million net loss after tax was converted into a $4.3 million net aftertax profit.

The big change was because of a goodwill writedown of more than $30 million in the previous corresponding period.

A turnaround in performance and the improved economic outlook supported the resumption of dividends, the firm said.

‘‘Given the turnaround in performance and the improved economic outlook, the board has been pleased to resume dividend payments with an interim dividend of 1.2c per share in line with Steel & Tube’s dividend policy of 60% to 80% of net profit after tax,’’

Steel & Tube said.

The company noted a strong balance sheet with debt repaid and $23.9 million in cash to support investment and growth.

Operating cash flow increased 40% to $24 million. — The New Zealand Herald