Steel & Tube Holdings has upgraded its half-year earnings guidance on the back of continued strong trading across the group.
Steel & Tube Holdings's group revenue increased 22 percent in the first five months of the financial year. (File image) Photo: RNZ / Cole Eastham-Farrelly
Underlying profit was expected to be between $20 million and $22m, in the half year to December, which compared with last month's guidance of $17m and $8.9m in the prior year.
"Since our last update, positive trading momentum has continued, and demand growth has been solid," Steel & Tube chief executive Mark Malpass said.
He said there had been strong trading across the group, with the company's distribution division's revenue up 35 percent of the year earlier.
Group revenue increased 22 percent in the first five months of the financial year, compared with the same time the year earlier, with volumes up 11 percent.
Malpass said the company had focused on customer service amid global supply chain constraints, higher pricing, and Covid-19 restrictions.
"We have carefully invested in high demand inventory using our strong 30 June 2021 cash position, which we expect to rebuild in the second half of the financial year as deferred income during the lockdowns is fully recovered."
Malpass said the company had a strong pipeline of secured work in place across the country and market conditions were expected to remain positive for at least the medium term.
He said the company was not providing guidance for the second half of the financial year at this stage, given the ongoing uncertainty surrounding Covid-19.