Union Steel Holdings has reported earnings of $7.6 million in its latest FY2021 results ended June, reversing from a loss of $7.6 million in FY2020.
The earnings came on the back of a 29.4% increase in revenue to $77.3 million from $59.7 million a year ago. This was mainly attributable to the growth in the metals’ division and the engineering segment of marine deck equipment business.
International prices of new steel products started strengthening in the last quarter of 2020 due to a rising demand with tight supplies as the global economies recovered. This consequently pushed up prices in the metal recycling markets. The increased demand and the resulting price surge largely improved the metals’ division’s sales. The progressive recovery of offshore activities also gave a significant boost to the group's order book which contributed to the jump in the engineering segment.
Other operating expenses saw a 69.7% decrease to $3.6 million from $11.9 million last year. The higher expenses in the previous financial year were due mainly to higher fair value losses on the investment property, impairment of goodwill, and loss allowance for trade receivables and write-down of inventories. These were significantly lower in FY2021.
As at end-June, cash and cash equivalents stood at $17.3 million.
The board has declared a final dividend of 4 cents per share.
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