Stemcor returns to profit in 2017

UK trader and distributor Stemcor Global Holdings has reported a year-on-year fall in sales volumes but increases in total revenue and Ebitda as the group returned to profit in 2017.

In a statement of its annual results to 31 December 2017 monitored by Kallanish, the company says that “… 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.” This was assisted by “… disposal of non-key assets to focus on key business activities.”

Group ceo Steve Graf is equally upbeat. “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,” he says.

Sales volumes of steel and raw materials fell by -15% y-o-y to 3.7 million tonnes, Stemcor confirms.

Total revenue for full year 2017 increased however by 8% to $2.11 billion versus $1.96 billion in 2016. Adjusted group profit before tax of $19 million was achieved, recovering soundly from a loss of $3.2m in 2016. Ebitda rose by a significant 45% y-o-y to $48m on the same comparison.

The group also welcomed the appoinment of its new non-executive chairman, Martyn Konig.