2018 Half Year Results

Stemcor Global Holdings Ltd is pleased to report financial results and achievements for the six months to 30 June 2018.
The Group’s principal activity during the year was the international trading and distribution of steel and steel making raw materials.

H1 2018 Highlights*:

• 1.5 million tonnes of steel and raw materials invoiced;
• Total revenue US$977m in 2018 (H1 2017: US$913m);
• Gross profit of US$51.3m (H1 2017: US$50.7m);
• EBITDA of US$20.6m (H1 2017: US$18.1m);
• Consolidated Group profit before tax and exceptional items of US$9.1m achieved for the first half of 2018 (H1 2017: US$6.8m);
• US$47.5m Term Loan Balance fully repaid 12 February 2018, 8 months ahead of schedule;
• New Commodity Trade Finance and Borrowing Base, working capital, facilities in excess of USD$600m were secured and activated across Europe, Americas and Asia; and
• Martyn Konig joined as new Non-Executive Group Chairman on 1 May 2018.

Steve Graf, CEO of Stemcor, commented: “Although increased trade restrictions provide challenges for the industry and limit freely traded volumes, it also highlights that Stemcor’s services are increasingly more important to the Group’s customer and supplier base.

“Our positive year-on-year results demonstrate the Group’s ability to adapt and prosper despite newly introduced tariffs, quotas and protectionism in the global steel markets. Our network, relationships, knowledge and experience have consistently allowed us to provide solutions for customers and suppliers in this dynamic steel trading environment.

“Steel prices are higher on average than 2016 and 2017 globally with the most elevated levels found in markets with increasing restrictions to entry. The evolution of Section 232 in the USA and EU Safeguard measures will be closely watched for direction and opportunity as the second half of 2018 unfolds.”

* - results adjusted to show ongoing operations only

Top Track 100

Stemcor Global Holdings, a privately held, leading global steel trading and distribution business, is pleased to report its inclusion in the annual Sunday Times HSBC Top Track 100 List of private UK companies.

The Top Track 100 league table ranks Britain’s biggest private companies by latest sales. Stemcor gained three places in the latest list from 37th to 33rd overall.

For the full year to end-December 2017, Stemcor’s total revenue increased 8% to US$2.11bn, from US$1.96bn a year earlier.

For the full Sunday Times HSBC Top Track 100 report click here.

2017 accounts

London, 21 May 2017: Stemcor Global Holdings, a privately held, leading global steel trading and distribution business, is pleased to report financial results for the year to 31 December 2017. The results highlight continued positive operating results, a turnaround in market conditions and Stemcor returning to consolidated Group profit for the first time since a major restructuring was undertaken in 2015.

The Group’s principal activity during the year was the international trading and distribution of steel and steel making raw materials.

2017 Highlights:

• 3.7 million tonnes of steel and raw material sold, down 15% year-on-year due to sale of non-core assets;
• Total revenue increased 8% to US$2.11bn in 2017 (2016: US$1.96bn);
• Gross profit of US$124m (2016: US$119m);
• Strong increase in EBITDA for 2017 of US$48m, a 45% increase (2016: US$33.3m)
• Adjusted Group profit before tax of US$19m achieved for the full year 2017 (2016: Loss of US$3.2m);
• Cash flow generation and asset sales used to more than halve debt to US$47.5m; and,
• Disposals of non-core businesses to focus on key business activities.

Post period end:

• US$47.5m equity raise since year end, facilitating the full repayment of the Term Loan on 12 February 2018; and,
• New financing facilities totalling in excess of US$600m were secured across Europe, Americas and Asia
• Martyn Konig announced as new Non-Executive Group Chairman.

Steve Graf, CEO of Stemcor, commented: “It is with great pleasure that I present our results for the 2017 financial year.
Our hard work and dedication following the restructuring of 2015 has delivered a strong set of numbers that reflect a focus on improved margin realisation and market conditions.

In addition, a strategy to focus on our core trading activities resulted in the successful sale of a number of business units during the year, enabling the refinancing of the rest of the group.

As part of our ongoing strategy to cement our position as a global steel trading and distribution business, I would like to welcome our new Chairman, Martyn Konig. We look forward to working closely with Martyn, utilising his experience and knowledge of the commodities sector to further strengthen Stemcor.”Email: Stemcor@tavistock.co.uk

Appointment of Martyn Konig as Chairman

London, 23 May 2017: Stemcor Global Holdings, a privately held, leading global steel trading and distribution business, is pleased to announce that Martyn Konig has joined the Board as Non-Executive Chairman, effective immediately.

Scott MacDonald, Chairman since the demerger and creation of Stemcor Group Holdings in October 2015, will be stepping down from his role to take on new opportunities.

Martyn joins Stemcor with over 35 years of significant experience in both commodities and investment banking. He is a qualified Barrister, a Fellow of the Chartered Institute of Bankers, the Non-Executive Chairman of Belgian listed zinc smelting group, Nyrstar NV, as well as Non-Executive Chairman at Euromax Resources; and Chief Investment Officer for T Wealth Management SA, a private multi-family office.

Steve Graf, CEO of Stemcor, commented: “We welcome Martyn and believe that his skills and experience will be beneficial as we move forward with a recently strengthened Balance Sheet and enhanced new Trade Finance Facilities.

During Scott’s Chairmanship, the Group has made significant progress and I’m grateful for his support. All at Stemcor thank him for his contributions and wish him all the best in the future.”

Martyn Konig, the incoming Group Chairman, commented: “Over the course of many decades Stemcor has built an enviable position within the global steel industry. My predecessor oversaw the business during a period of tough market conditions and the successful restructuring of 2015 is now complete as is evidenced by the 2017 financial results.

The new Stemcor has emerged as a more focused and financially robust trading group in the international steel market, and I look forward to working with Steve and the management team.”

Fidelium Partners has acquired OKS Otto Knauf GmbH from STEMCOR

Munich, December 1, 2017 - FIDELIUM PARTNERS has acquired 100% in OKS Otto Knauf GmbH from the London based STEMCOR Group, a global service provider for the steel industry.

OKS is a leading steel service center based in Iserlohn, Germany, specialized in slitting of strip mill products including galvanized, hot and cold rolled, and stainless steel. Currently OKS processes approximately 250,000 tons of steel per annum and has an excellent reputation in the steel industry as it is known for reliability and highest quality standards.

The sale enables STEMCOR to further enhance their strategic focus on its core business in global steel trade and distribution. FIDELIUM is experienced in complex corporate carve-out situations and focuses on businesses with operational improvement potential across Western Europe. Backed by a number of German business families, an equity fund of EUR 103 million is available for acquisitions, follow-on investments, and add-ons.

Rafal Grabarkiewicz, Managing Partner, FIDELIUM, commented: "OKS has a great market standing and ample growth opportunities. With our operational expertise we are dedicated to give OKS the undivided attention it deserves, and will support the existing management team on its path to becoming an independent SME."

Friedrich-Walter Düllmann, CEO, OKS, added: "I believe Fidelium is the right partner to support OKS in the execution of its growth strategy. We can now focus on widening our service offering, increasing our plant utilization and at the same time strengthening our position as a regional market leader in the steel service industry. The entire management team and I are looking forward to driving the business towards a successful stand-alone future."

2016 accounts

London, 25 May 2017: Stemcor Global Holdings, a privately held, leading global steel trading and distribution business, is pleased to report financial results for the year to 31 December 2016.
The Group’s principal activity during the year was the international trading and distribution of steel and steel making raw materials.

2016 Highlights:

• 4.35 million tonnes of steel and raw material sold;
• Total revenue decreased 29% to US$1.96bn in 2017 (2015: US$2.76bn) due to the downsizing of a number of less profitable business units and product lines;
• Gross margin improves to 6.1%;
• Operating profit of US$28.9m, up 465% from a year earlier; and
• Group overhead expenditure reduced by 17%

Steve Graf, CEO of Stemcor, commented: “A key part of the Group’s restructuring was the downsizing of a number of less profitable business units and product lines. This resulted in an intentional drop in sales volumes on a year-on-year basis.
“Significant volatility in steel markets led to price reductions across the course of 2015, but there was some recovery within these markets during 2016 which, along with the full year impact of the cost reduction measures, led to an improved gross margin performance.”