Capral Ltd (ASX:CAA) has lifted its 2016 EBITDA guidance to be between $19 million and $21 million, a significant advance relative to $5.1 million for the year ending 31 December 2015.
It also would beat the most recent earnings guidance for the aluminium products supplier, which had advised in April that it expects a full year EBITDA of between $13 million and $15 million.
The booming Australian east coast housing market has lifted sales of Capral’s fabricated and semi-fabricated aluminium related products.
A consistent fall in aluminium prices over the last year has significantly favoured manufacturers of aluminium products, including Capral.
The company has also regained market share as a result of slowing down of Chinese imports assisted by favourable anti-dumping outcomes and the lower Australian dollar.
Capral’s half year results are due for release in August 2016 and the company is forecasting a half year EBITDA of about $10 million.
Positive net cash flows from operations resulted in Capral’s 2015 year-end net cash increasing by $3.6 million to $20.1 million.
The company’s 2015 revenues of $403 million increased 7.5% over the $375 million reported in 2014.
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