Aluminium products group Capral Ltd has upgrade its estimated full year earnings before interest, tax, depreciation and amortisation for the year to June and says it will be in a position to consider a fully franked final dividend for shareholders.
The news saw the shares leap 39% – by 4.5 cents to 16 cents at the close yesterday.
The company told the ASX in a statement yesterday that it was originally looking a full year EBITDA of between $13 million and $15 million, but that it had now boosted that range to between $19 million and $21 million, an increase of more than 30%.
Capral says the boost comes from improved market conditions for aluminium products. That will see the June half EBITDA jump to around $10 million.
“During the last few months there has been an improvement in volumes over those anticipated,” the company told the ASX.
"Market conditions have been stronger due to the buoyant East Coast housing market, and some regained market share from imported extrusions assisted by favourable anti-dumping outcomes and the lower Australian dollar.”
Capral said it expects to generate positive operating cash flow in 2016 and be net cash positive at June and December 2016 balance dates.
"On this basis Capral reaffirms that it will be in a position to consider a fully franked final dividend."
"Capral’s half year results are due for release around 23 August 2016 and the Company forecasts that the half year EBITDA will be approximately $10 million."
"Given the relatively low volatility in aluminium metal costs this year to date, Capral is not expecting a material difference between Trading and Statutory EBITDA at this time,” the company added.
