Bisalloy's FY profit dives

Manufacturer tips recovery in steel demand, reintroduces dividends.

Bisalloy Steel Group (BIS) is tipping a recovery in steel demand in the current year after posting a sharp fall in net profit but has started paying dividends again.

The group blamed its profit slump on a "significant deterioration" in market conditions across the resources sector for the second half. 

Net profit attributable to members fell 44% to $3.4 million in the year to June, from $6.2 million the previous year, on the back of slowing sales in Bisalloy's Australian operations and the effects of a high Australian dollar.

Revenue also fell 23% to $80.5 million in the period, from $103.9 million in the prior year.

The group has reintroduced dividends, and will pay a fully-franked final dividend of 4 cents per share. It did not pay an interim dividend.