Welcome. Good morning. I'm Rex Wood-Ward, Chairman of Capral Limited. On behalf of the board, welcome to Capral's 2023 virtual AGM. To meet the requirements of Capral's constitution, a quorum of three shareholders is physically present here at the Huntingwood Venue today. Capral's Managing Director, Tony Dragicevich, Capral's CFO, Tertius Campbell, and a Capral employee shareholder. The other members of the board, Graeme Pettigrew, Katherine Ostin, Mark White, and Bryan Tisher, are present online. Accordingly, I declare the 2023 AGM open. Today's meeting is being held online via the Computershare meeting platform. This allows shareholders, proxies, and guests to attend the meeting virtually. All attendees can watch a live webcast of the meeting. In addition, shareholders and proxies have the ability to ask questions and submit votes.
The notice of meeting and Capral's 2022 annual report have been provided to shareholders and copies are available on Capral's website. The notice sets out the items to be considered at this meeting and will be taken as read. Online attendees can submit questions at any time. To ask a question, select the Q&A icon. Type your question into the text box. Once you have finished typing, please hit the Send button. Please note that while we can submit questions from now on, I will not address them until the relevant time in the meeting. Please also note that your questions may be moderated, or if we receive a multiple questions on one topic, amalgamated together. To ask a verbal question, please follow the instructions written below the broadcast. Please insert the agenda item at the front of your question to enable us to collate questions quickly.
Finally, due to time constraints, we may run out of time to answer all of your questions. If this happens, we will answer them in due course via email or posting responses on our website. Voting today, will be conducted by way of a poll on all items of business. In order to provide you with enough time to vote, I will shortly open voting to all resolutions. If you're eligible to vote, once voting opens, press the Vote icon and all resolutions will be activated with voting options. To cast your vote, simply select one of the options. There is no need to hit a Submit or Enter button as the vote is automatically recorded. You will receive a vote confirmation notification on your screen. You can change your vote up until the time I declare voting closed.
I now declare the poll and voting open on all items of business. I will give you a warning before I move to close the poll and voting. Prior to considering the first agenda item, Tony Dragicevich, Capral CEO and Managing Director, and myself would like to take the opportunity to address the meeting. The strong demand experienced throughout 2021 continued into the first half of 2022, supported by a very high order book at the start of the year. The second half of the year saw easing supply bottlenecks, which allowed market participants to work through the backlog of orders accumulated during the post-pandemic demand surge. Some market share gains from imports came under pressure as international supply chain problems eased and declining dwelling commencements in the second half led to lower activity levels in the latter part of 2022.
Revenues of AUD 693 million in 2022 were 17% higher than the AUD 593 million reported in 2021, on 6% lower volume. Sales revenue growth was driven by record-high global aluminum prices. High productivity and operational leverage and favorable sales mix contributed to a record underlying EBIT of AUD 40.8 million for 2022. 13% higher than last year's AUD 36.2 million. A negative LME revaluation of AUD 2.2 million reduced EBIT to AUD 38.7 million, compared to AUD 39 million EBIT in 2021, which included a AUD 2.8 million positive LME revaluation. Reported net profit after tax included AUD 8.4 million arising from recognition of a deferred tax benefit brought to account. 2021 included AUD 9.4 million of deferred tax benefit.
Net profit after tax was AUD 40.8 million or AUD 2.31 per share, compared to last year's AUD 45.8 million of AUD 2.52 per share, which also included a gain on property revaluations of AUD 3.1 million. Higher LME prices saw both receivables and inventories increase substantially at year-end. The higher working capital reduced the company's net cash at 31 December 2022 by 50% on prior year, down to AUD 25 million. Despite this additional investment in working capital, the company's balance sheet remains strong, which allowed us to continue to balance our utilization of free cash between funding internal growth, investing in additional capacity, and returning cash to our shareholders through fully franked dividends. For the financial year ended 31 December 2022, Capral paid fully franked dividends of an interim AUD 0.20 per share in September 2022, and a final AUD 0.50 per share in March 2023.
Capral's franking credit balance is now approaching full utilization. As a result, the board is reviewing its capital management plans and will advise shareholders in due course. Most pleasingly, the Capral team has delivered excellent safety results, far exceeding the comparative results of our listed peers. The company recorded a total reportable injury frequency rate, or TRIFR, of 4.3 injuries per 1 million hours worked in 2022, well below the 7.2 recorded in 2021. Capral's management continues to strengthen the strong safety culture and roll out new initiatives and prioritize safety across every area of our business. The environment is a key priority for Capral. Our National Sustainability Committee continues to make significant and meaningful progress in driving Capral's Sustainability journey. I urge shareholders to read the sustainability report section of our annual report, which details the many initiatives in progress.
Having served as an Independent Non-Executive Director since June 2010, Graeme Pettigrew will retire from the board at the conclusion of the AGM today. Graeme's wise counsel and industry knowledge and experience have been invaluable during his tenure, which included his dedicated service as chair of the Remuneration and Nomination Committee. We wish him a long, happy and healthy retirement. The board thanks go out to all of Capral shareholders for their continued support during 2022. Thank you to all of my Capral colleagues for their tireless efforts throughout the past year. In the 4 years since the restructuring and rightsizing of Bremer Park in 2019, the positive initiatives undertaken by Capral have demonstrated that the company has a strong foundation and is very well-placed to succeed throughout the various phases of the business cycle.
Whilst we expect the housing sector to slow further, the non-residential and industrial segments of our business should remain firm. We're expecting a decline in the overall extrusion market in the year ahead, which we anticipate will have a modest impact on earnings in 2023. Tony will provide an update on our 2023 guidance during his address. Thank you. Tony.
Thank you, Rex. Okay. Kicking off with the financial review for 2022. Market conditions were strong in the first half of 2022, and volumes were assisted by a large order book to start the year. Conditions softened in the second half as the market slowed and import supply chains returned to normal. Volume, however, remained solid, which allowed Capral's manufacturing plants to run at good levels of efficiency. As interest rates started to rise, the residential housing market slowed from its highs, driven by post-COVID government housing stimulus programs. Housing starts were 184,500 in 2022, down 20% on the prior year. Commercial construction activity was buoyant in our key industrial markets. Manufacturing, transport and marine also remained relatively strong. The international LME price of aluminum was impacted by global supply factors, including Russia's invasion of Ukraine.
LME reached peak levels in Q2 2022 before returning to more normal but still elevated levels in Q4 2022. Capral's average LME cost for 2022 was 22% above last year, which in turn was 30% higher than the previous year. This flowed through to higher selling prices and working capital levels, which will continue through the first half of 2023. During 2019, Capral completed a significant restructure of its largest manufacturing operation at Bremer Park in Queensland. This successfully transformed Capral's business, delivering permanent cost savings and increased operational efficiencies. The benefits are evident, with Bremer now delivering a strong profit contribution to the group. The acquisition of the G.
James extrusion plant in Smithfield was completed in February 2021 and has been successfully integrated into Capral's operations, moving from a one-shift operation to three shifts during 2022. Capral delivered a record profit result in 2022, with underlying EBITDA of AUD 62.2 million, up from AUD 56.4 million achieved on 6% lower volume. Underlying EBIT, AUD 14.8 million, was above the AUD 32 point... Sorry, AUD 36.2 million recorded in 2021, with underlying net profit after tax of AUD 34.6 million, up from the AUD 30.5 million in 2021. An excellent result. Increasing earnings on lower volume demonstrates how far Capral has progressed over the last four years. Our key high-level strategies remain consistent. Build on our strengths, optimize what we do, and grow for the future.
A key focus in 2023 will be in Sydney with the Smithfield and Penrith extrusion plants and a new paint line installed at our Huntingwood distribution center. Smithfield will continue to focus on lifting productivity through debottlenecking and equipment upgrades. During January 2023, January this year, we successfully upgraded the Penrith extrusion press and shop floor system. A major undertaking by our engineering team, which will ultimately deliver a first-class extrusion facility at Penrith. A paint line was commissioned at our new Huntingwood distribution center in Q1 2023, this year, providing us with powder coating capability in New South Wales for the first time. These assets will deliver freight savings and improve quality and service to our New South Wales customers.
We will continue to focus on growing Capral's aluminium distribution business with the objective of increasing the volume and profitability of Capral's direct distribution channel. Over the past year, we have added two aluminium centers with the acquisition of small businesses in North Brisbane and Wollongong, thereby expanding our geographical presence. A small number of other opportunities exist to further expand our regional footprint. Moving to fair trade. Capral continues to lead the local aluminium extrusion industry in the pursuit of fair trade. Measures on Chinese imports are in place until 2025. The Anti-Dumping Commission is currently reviewing the level of those duties. Measures against some Malaysian and Vietnamese suppliers fell away during 2022. We've appealed that decision and are pressing for reinstatement. Market share gains have been made against imports over the last few years.
They continue to represent a material proportion of the total Australian extrusion market. As supply chains normalize, we must continue to remain vigilant in this area. Safety first is the first of Capral's key values. Our safety performance was exceptional, re-recording a total reportable injury frequency rate of 4.3, which is well down on the 7.2 recorded in 2021. This is well below the peer average of 9.8 for listed building product manufacturers. ESG and risk. Capral advanced its commitment to environmental obligations by forming a national sustainability committee in 2020, resulting in the development of Capral's Sustainability four pillars and a roadmap to Net Zero by 2050. During the year, Capral introduced lower carbon aluminum options to the Australian market under the registered trademark, LocAl.
Capral has a robust risk assessment process and active risk mitigation program in place. Turning to the outlook. Forecast for the residential market show the market slowing further. Starts in 2023 are forecast to be on par with 2022, the pipeline of work is expected to reduce during the year. The non-residential market is forecast to be firm in 2023, as are our key industrial markets with customers continuing to support local supply. LME is volatile and subject to international influences. Based on external forecasts, we expect aluminum to remain at elevated levels throughout the first half of 2023, then weaken on the back of lower global demand as economies slow under the weight of higher interest rates.
The overall market for Capral's aluminum extrusion and raw product is forecast to fall modestly this year, but we expect to retain a good proportion of market share gained from imports. Trading in the first quarter of 2023 has been above expectations. We are pleased now to confirm our profit guidance provided in February. Underlying EBITDA is forecast, absent any unforeseen events, to be between AUD 52 million and AUD 56 million, with underlying net profit after tax between AUD 26 million and AUD 30 million. On that basis, Capral would be in a position to continue cash distribution to shareholders. In closing, I wish to thank the Capral team for their tremendous contribution to the outstanding 2022 results. Capral is in a good position to capitalize on our strong foundation, maximize opportunities as they present, and develop the business for the future. Thank you.
Thank you, Tony. I'll now move on to this agenda item 2, which covers the statutory reports and audit.
First item relates to your consideration of Capral's 2022 annual report. Miss Xenia Delaney of Deloitte, Capral's auditors, is available online to answer any questions you may have about the conduct of the audit. We did not receive any written questions on the audit ahead of today's meeting. We will now address any question on the annual report or audit. We do not have any questions. Just a reminder to please insert the agenda item at the front of your question to enable us to collate questions quickly on the other resolutions. We will now consider the items which require voting. As indicated in Capral's notice of meeting, voting on each of the resolutions being put to the meeting will be conducted by a poll. Majority of shareholders who submitted proxy forms appointed the chair of the meeting as their proxy.
As indicated in Capral's notice of meeting, the chair will vote undirected proxy votes in favor of all resolutions. Moving on to agenda item three, which is the re-election of Director Katherine Ostin. The first voting item is the re-election of Katherine as a director. The wording of the resolution is shown on the screen. The total number of valid proxy votes received is now displayed on the screen. Moving on to agenda item four, which is a non-binding resolution on the adoption of the 2022 remuneration report. The wording of that resolution is now on the screen. The total number of valid proxy votes received is now displayed on the screen. Moving on to agenda item number five, which seeks the shareholder approval of issue of securities under the Capral Limited Long Term Incentive Plan.
The wording of that resolution is now on your screen. The total number of valid proxy votes received on this item is displayed on the screen. Moving on to agenda item number 6, which seeks shareholder approval to issue share rights under Capral's Long Term Incentive Plan to Tony, Capral CEO and Managing Director, and subject to the vesting of those share rights on first of March 2026. The wording is now on your screen. The total number of valid proxy votes received is displayed on your screen at the moment. Moving on to the final agenda item, which is item 7, which covers questions. We'll now respond to all submitted questions relating to the matters requiring a vote. We have not received any questions on any of these items, and therefore, we approach the conclusion of the meeting.
Ladies and gentlemen, that concludes our discussion on the items of business. In a couple of minutes, I will close the poll and voting on all resolutions. Please ensure that you have cast your vote on all of these resolutions. I will now pause to allow you time to finalize those votes.
We started RDM well over 30 years ago now, in 1989. We're now at hull number 79. It's a average of around about 2 boats a year for 30 years. Our guys are very skilled. They're very proud of what they achieve, and especially when they see it operating here in Tasmania and Japan, Africa, New Zealand, the Caribbean, everywhere in the world. We've been involved with Capral from the very beginning, really, 30 years ago. They supply us with all our extrusions, specialist T-bars, flat bars, specialist extrusions that we build the boats out of. Over those 30 years, those products have grown to a very comprehensive lot of materials that make it easier for us to build the boats.
ladies and gentlemen, I now declare the poll closed. The provisional results of voting indicate that all resolutions have passed. This will be verified and released to the stock exchange later today. There being no further business, the 2023 AGM of Capral is closed. Thank you all for your attendance today.