Revenue for the company, a wood products processing, marketing and distribution business with a strong focus on business in the US, was up 5% on the previous six month period to US$210 million and net profit after tax increased by 200% to $6 million.
Earning before interest, taxation, depreciation and amortisations was on track to meet its full year target of US$20 million. For the six months to December 31, 2015, Tenon recorded EBITDA at 70% ahead of the previous period to US$12 million (excluding project costs and FX hedging contract losses).
Tenon expects second half EBITDA to exceed the first half as benefits from operational initiatives are realised such as the capital upgrade of the Taupo manufacturing plant and the new business from the US Home Center.
The company also noted in its release on the NZX it expects little impact from the Australian wind up or sale of home improvement chain Masters, which it provides products and services to. It added, that depending on the outcome, restructuring may be required and although is likely to be non-material will require provisions to the EBITDA.
The confidence in the company is supported by the announcement of an interim dividend. Following the introduction of dividend payments last November (in respect of FY14-15), shareholders will receive an interim dividend for this financial year of NZ 5.75 cents a share which is a 15% increase on last year’s full year dividend of 5c a share.
