Despite weaker revenue, BSI Steel to pay shareholders ZAR56.2million

BSI Steel

BSI Steel limited’s revenue for the year decreased to ZAR2.4 billion compared to  ZAR2.6 billion reported in the year 2016 whilst gross profit lowered to ZAR271.4 million against ZAR302.3 million in n the year before .

The company’s EBITDA decreased to ZAR58.6 million in contrast to ZAR112.6 million recorded in the year 2016. Operating profit fell to ZAR41.1 million in contrast to ZAR89.7 million recorded in the previous year. Profit attributable to ordinary shareholders shot up to ZAR56.2million against ZAR33.3 million in 2016.

Furthermore, headline earnings per share lowered to 1.4 cents per share compared to 5.3 cents per share posted in 2016.

A dividend of 2 cents per share (1.7 cents per share net of dividends tax) was paid on 15 August 2016. Shareholders are advised that the board has assessed the financial results for the year ended 31 March 2017 and other key drivers with regard to declaring a dividend for the year ended 31 March 2017. The board has resolved, following such assessment, that no dividend will be declared for the year ended 31 March 2017.

The year has been difficult, and certainly the latter half exceptionally so. The group however remains steadfast in the drive to reduce costs and close non-contributing operations. We achieved what we set out to in getting costs down from R27 million to R22 million per month. Improved efficiencies across the group are front of mind, as can be seen from the drop in costs. We remain committed to bringing our costs down even further in the coming months.

Margins across the industry remain stubbornly low, hence the need to operate in the lowest quartile of cost per ton amongst our peers whilst stock management has received considerable focus and we are pleased with the results and will continue to exert the necessary pressure in order to achieve excellence in this critical area of our business. The possibility of a strike in the coming weeks looms and we have taken all possible steps to mitigate the effects of the stoppage to our business. The policy of “steady as she goes” remains for the coming year and along with ensuring that we have a lean operating structure.

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