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