Steel & Tube FY21 Trading Update

21 July 2021
STU / NZX ANNOUNCEMENT

STEEL & TUBE UPDATES EARNINGS GUIDANCE FOR FY21 RESULTS
Steel & Tube Holdings Limited (Steel & Tube) advises due to strong performance it is now updating
earnings guidance for the financial year ending 30 June 2021 (FY21).
Subject to completion of year end procedures and external audit, Steel & Tube expects FY21 reported
Earnings Before Interest and Taxation (EBIT) of between $20-$22 million, this includes non-trading
benefits of $2.8 million due to property related gains which will be normalised
1
. Steel & Tube is also
reviewing any impact of the recent International Financial Reporting Standards (IFRS) Interpretations
Committee agenda decision on Software as a Service (SaaS)
2
.
Chief Executive Officer of Steel & Tube, Mark Malpass, said: “We are seeing the benefits of our strategic
initiatives including improved customer service and delivery, investment in digital and a significant
reduction in the company’s underlying cost structure.”
Steel & Tube’s cash position remains strong, despite significant investment in inventory to support
growth, and net cash was approximately $25 million at the end of June 2021 (up from $24 million cash at
31 December 2020).
The Steel & Tube Board expects to pay a final dividend during September 2021, consistent with its
dividend policy.
Steel & Tube will release its FY21 result on 24 August 2021.
ENDS

For further information please contact:
Mark Malpass
Chief Executive Officer
Tel: +64 27 777 0327
Email: mark.malpass@steelandtube.co.nz

Richard Smyth
Chief Financial Officer
Tel: +64 21 646 822
Email: richard.smyth@steelandtube.co.nz

For media assistance, please contact: Jackie Ellis, Tel: +64 27 246 2505,
Email: jackie@ellisandco.co.nz

1
Normalised EBIT excludes non trading adjustments and unusual transactions including gain/losses on
property, impairments and restructuring costs. Steel & Tube believes that excluding these transactions from
normalised earnings can assist users in forming a view of the underlying performance of the Group. FY21
normalisation adjustments for property consist of $1.2 million gain on property disposals and $1.6 million
reversal of FY20 IFRS 16 impairments.

2
In April 2021, the International Accounting Standards Board’s IFRS Interpretation Committee issued an
agenda decision clarifying how arrangements in respect of SaaS should be accounted for. As a result of this
decision, it is likely that costs previously capitalised will be expensed. As this is a change in accounting policy,
these adjustments will be made retrospectively. Steel & Tube is currently assessing the impact of this change,
any impact will be a non-cash, accounting change.