The Group’s principal activity during the year remained the international trading and distribution of steel and steel making raw materials.
- Sourcing and delivery of 3mt of steel and raw materials during the year, down from a total of 3.7mt a year earlier following the selective asset realisation plan executed over the course of 2017;
- On a like-for-like basis sales volumes of material decreased by 6% from a year earlier (FY2017: 3.13mt1);
- Total revenue increased by 10% to US$1.927bn in 2018 (FY2017: $1.757bn1);
- Gross Profit of US$101m, before exceptional and restructuring items;
- Gross margin remains healthy at 5.3% (FY2017: 5.7%1);
- EBITDA for 2018 of US$39m (FY2017: US$36m1);
- Profit before tax2 up 52% to US$18m (FY2017: US$12m), with the more competitive financing facilities and also the early repayment of the Term Loan leading to a significant reduction in financing costs;
- Group Net Asset value increased to US$147m as at December 2018 from US$89m at the end of 2017, due to a share issuance to existing shareholders, retained earnings growth and currency effects.
- US$47.5m Term Loan fully repaid in February, 8 months ahead of schedule; and
- More than $650m of new working capital facilities secured and activated across Europe, Americas and Asia.
- Results adjusted to show the ongoing core business only
- And before exceptional and restructuring items and movements on financial assets and liabilities through profit and loss
Steve Graf, CEO of the Stemcor Group, commented:
“The Group delivered a significant step up in profitability year on year within our core operations. Over the course of 2018 the Group has continued to demonstrate flexibility in a dynamic steel trading environment, successfully shipping and invoicing 3 million tonnes of steel and raw materials, and continuing to find solutions for our customers and suppliers amidst changing trade flows in an environment of increasing trade barriers. In addition, the implementation of our refinancing plan has allowed us to move beyond 2018 Term Debt free and with competitive working capital facilities providing a platform for future successful trading."
“Our ongoing focus on efficiency has enabled us to realise an additional $2 million in overhead savings across 2018.”
“Across Q1 2019 we’ve seen a relatively slow global economic pace that emerged during the second half of 2018. Steel consuming businesses remain cautious with confidence in the future restrained by geo-political and macro-economic concerns coupled with numerous protectionist measures on steel products around the world. Despite these challenges Stemcor performed profitably in Q1 with volumes ahead of forecast levels. We begin Q2 with cautious optimism, entering peak construction periods in key markets and noting that central banks have largely discontinued raising interest rates for the foreseeable future. It would not surprise us to see steel prices rising globally in the 2nd half of 2019”