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