Union Steel Holdings has reported earnings of $7.04 million for the 1HFY2024 ended Dec 31, 2023, 27.7% higher than its earnings of $5.5 million.
Revenue rose marginally by 0.7% y-o-y to $53.5 million mainly due to the “notable” expansion in the group’s engineering segment. The segment expanded following the acquisitions of BTH Group, Promoter, Marshal Group and Fastweld Engineering, which diversified Union Steel’s revenue streams. The growth was partly offset by softer sales in the metals segment due to intensive competition for both new steel and scrap metal.
Gross profit roes by 25.8% y-o-y to $16.9 million on lower cost of sales and higher gross profit margin (GPM), which rose to 31.6% from 25.2% in the corresponding period the year before.
No dividends were reported for the period.
As at Dec 31, 2023, cash and cash equivalents stood at $14.7 million.
Shares in Union Steel closed 3 cents higher or 2.66% up at $1.16 on Feb 7.
