The Group’s principal activity during the year remained the international trading and distribution of steel and steel making raw materials.
2021 Highlights:
- Sourcing and delivery of 3.1mt of steel and raw materials during the year
- Total revenue of US$2.3bn in 2021 (FY2020: US$1.5bn), representing a 49% increase, improved by:
- increased price environment
- higher proportion of finished steel product shipments versus raw materials
- Gross Profit of US$125m (FY2020: US$62m)
- Gross margin at 5.5% (FY2020: 4.1%)
- EBITDA(1) for 2021 of US$57m (FY2020: US$18m)
- Profit before tax (2) of US$43.9m (FY2020: US$7.3m) highlighting the ability to execute traditional trade flows and capture new trading opportunities in a dynamic global market environment, and benefitting from the Group’s ongoing focus on overhead cost control.
- Continued optimisation of the Group’s financing structure, with c.US$900m of available specifically tailored and localised working capital financing, made up of over US$550m of bilateral trade finance facilities and c.US$350m of local borrowing base facilities
Steve Graf, CEO of the Stemcor Group, commented:
2021 started with optimism on the CV19 front with vaccine availability and slightly fewer restrictions, while commodity prices continued the rapid escalation that began in late summer of 2020. Despite periods of CV progress followed by variant setbacks across 2021, Stemcor was fortunate to operate safely overall and a successful rhythm of efficiently conducting business combining WFH, office participation and the restart of business travel developed. The phrase “supply chain” became an everyday reference to shortages of products and shipping delays but the Stemcor network, relationships and market knowledge provided key access to tier one finished steel and steel making raw materials. Coupled with strong support from our commodity trade finance lenders, Stemcor was able to fully engage with our loyal customers and suppliers with reliable business and service throughout the year. With our average sales price rising from $459 per tonne to $732 per tonne across 2021 Stemcor was able to deliver an unprecedented year of record results. The excellent performance achieved is once again built on the adaptability, flexibility, and incredibly strong work ethic of our employees for which I remain very grateful. Our long term, strong relationships with customers, suppliers, lenders, and service providers continue as essential components of our success. Our acquisition of Stonerock Shipping, providing a gateway for steel scrap shipments, was fully integrated during the year. Our 2021 year end carry forward order book was very strong, indicating a solidly profitable start to 2022, but as always there will be challenges to overcome with inflation, war, geopolitical tensions and forecasts of recession all present in the new year.
1. Operating profit before exceptional and restructuring items, transaction costs and depreciation.
2. Profit before taxation, exceptional and restructuring items and transaction costs.