Bisalloy Steel Group (BIS) H2 2024 earnings summary

Executive summary

• FY24 profit after tax attributable to members rose 23% to $15.7m, driven by strong pricing, improved product mix, and lower input costs in H2, with Australian growth offsetting Indonesian declines.

• Revenue was flat at $152.9m, with gross profit up 18.5% year-over-year; all business units, including JVs in Indonesia, Thailand, and China, remained profitable.

• Net cash position improved to $5.6m from net debt of $2.3m, and the balance sheet showed no net debt at year end.

• Final dividend of 11.5cps (fully franked) declared, bringing total FY24 dividends to 19.5cps; dividend reinvestment plan remains suspended.

• Board highlighted strong safety record, enhanced IT systems, and government support for AUKUS submarine steel qualification and anti-dumping protection.

Financial highlights

• Revenue: $152.9m, down 0.2% year-over-year; gross profit: $38.7m, up from $32.6m.

• Profit before tax: $23.1m, up 22.8%; profit after tax: $16.2m, up 19.9%; EPS: 33.0c, up from 27.0c.

• EBITDA: $26.7m; net tangible asset backing per share: 151.8c (up from 142.0c).

• Operating cash flow: $22.0m (up from $11.1m); net cash position at year end: $5.6m.

• Dividends paid in FY24 totaled $13.4m, including a special dividend.

Outlook and guidance

• Management remains optimistic for FY25 despite global steel price risks from Chinese demand slowdown and geopolitical tensions.

• Continued investment in domestic and international operations, with focus on innovative steel solutions and expansion in processed products and armour steel.

• Ongoing trials of patented wear monitoring sensors in mining, with commercialisation potential in future years.

• Qualification process for AUKUS submarine steel expected to complete in H1 2025, opening further market opportunities.