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STRONGER IN EVERYWAY 5F 26 February 2021 STU / NZX ANNOUNCEMENT St steel & tube STU REPORTS STRONG EARNINGS IMPROVEMENT FOR 1H21 Unaudited results for the six months to 31 December 2020 ( 1H21 ) • Steel & Tube reports 33 % improvement in 1H21 normalised Earnings before Interest and • • • • • • • Tax ( EBIT ) to $ 7.6m , with result above top end of December 2020 guidance Strong balance sheet with all debt repaid and $ 23.9m cash in bank to support capital investment and growth strategy 40 % increase in operating cashflow to $ 24.0m Progressive recovery across reporting period following COVID - 19 lockdown , with Q2 trading returning to prior year levels Benefiting from strategy execution , particularly network consolidation , digital investment , and significant structural cost reductions Turnaround in performance and the improved economic outlook support the resumption of dividends with interim dividend of 1.2 cents per share declared ( unimputed ) Strong pipeline of secured contract work for 2H21 with improving activity in most sectors Maintaining cautiously optimistic view to future economic outlook . Final dividend expected in line with policy , assuming current trading performance continues and no further impact from COVID - 19 $ m 1H21 1H20 Revenue 226.3 232.0 EBIT 8.9 ( 33.4 ) Non - trading adjustments¹ 1.3 ( 39.1 ) Normalised EBIT 7.6 5.7 ( excluding non - trading adjustments ) NPAT / ( NLAT ) 4.3 Net Cash ( Debt ) 23.9 Net operating cash flow 24.0 ( 37.0 ) ( 10.9 ) 17.1 Steel & Tube Holdings Limited ( NZX : STU ) has reported a 33 % improvement in normalised EBIT in the first six months of the financial year , as it benefits from the execution of strategic initiatives , particularly network consolidation and digital investment , and realises sustainable benefits from structural cost reductions . The company's customer base covers many sectors of New Zealand's economy and it has seen growing market demand in some sectors , especially residential construction , which is helping to offset a softer non - residential construction market . 1 11H21 non - trading adjustments of $ ( 1.3 ) m being $ 0.8m from reversal of lease impairment and $ 0.5m gain on sale of property . 1H20 non - trading adjustments were $ 2.0m restructuring and relocation costs and a non - cash goodwill impairment of $ 37.1m . Further details included in appendix to the Investor Presentation .