Afarak Group Plc Afarak Group: Interim Report H1 2021
August 20 2021 - 12:00AM
UK Regulatory
TIDMAFAGR
06:00 London, 08:00 Helsinki, 20 August 2021 - Afarak Group Plc
("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)
FINANCIAL INTERIM RELEASE H1 2021
Afarak Group has restated its figures for H1 2020 due to the
loss of control and the end of the consolidation of Afarak Mogale
(Pty) Ltd. Afarak Group reclassified Afarak Mogale (Pty) Ltd's
previously reported income statement figures as discontinued
operations. There is no change to the previously reported balance
sheet figures.
H1/20
H1/21 Restated 2020
Revenue EUR million 37.3 35.5 59.8
EBITDA EUR million -0.9 -0.3 -4.1
EBIT EUR million 0.9 -1.7 -28.2
Earnings before taxes EUR million -0.5 -4.1 -32.4
Profit from continuing
operations EUR million -0.9 -4.6 -27.6
Profit from discontinuing
operations EUR million 0.0 -11.5 6.1
Profit EUR million -0.9 -16.1 -21.6
Earnings per share EUR 0.00 -0.07 -0.07
EBITDA margin % -2.4 -1.0 -6.8
EBIT margin % 2.4 -4.8 -47.1
Earnings margin % -1.3 -11.4 -54.3
Personnel (end of period) 608 770 621
FIRST HALF 2021 HIGHLIGHTS
-- Revenue increased by 5.2% to EUR 37.3 (H1/2020: 35.5) million;
-- Processed material sold decreased by 45.8% to 12,667 (H1/2020: 23,356)
tonnes;
-- Tonnage mined decreased by 47.8% to 53,542 (H1/2020: 102,659) tonnes due
to low mining activity at the South African mines;
-- The Group's EBITDA decreased to EUR -0.9 (H1/2020: -0.3) million and the
EBITDA margin was -2.4% (H1/2020: -1.0%);
-- Profitability was positively affected by a reversal gain on previously
recognised impairment loss on Ilitha's mining assets, amounting to EUR
2.9 (0.0) million;
-- EBIT was EUR 0.9 (H1/2020: -1.7) million, with the EBIT margin at 2.4%
(H1/2020: -4.8%);
-- Profit for the period from continuing operation totalled EUR -0.9
(H1/2020: -21.6) million;
-- Cash flow from operations stood at EUR -1.9 (H1/2020: -2.2) million;
-- Net interest-bearing debt after deducting liquid funds amounted to EUR
50.3 (54.7) (31 December 2020: 48.2) million;
-- Cash and cash equivalents at 30 June totalled EUR 2.9 (30 June 2020: 6.1)
(31 December 2020: 1.1) million.
OUTLOOK FOR THE SECOND HALF OF 2021
The Ferrochrome market is closely bound to the stainless-steel
market. The main producing Countries are, where possible, putting
in place measures to calm down the rallying prices of Stainless
steel.
Starting August 1st, Russia has imposed a temporary export tax
of 15% on ferrous and non-ferrous metals ,including ferroalloys.
This measure is taken in order to compensate high cost steel
products meant for state projects.
This export tax will be imposed until December 31st, 2021 for
export to countries outside the Eurasian Customs Union.
In China, also as of 1st of August, due to an increased
electricity shortage and price, most Ferrochrome Chinese
Ferrochrome producers have left the spot market. The Chinese
Ministry of Finance have announced that steel will become more
expensive to export to other countries and that they will be
imposing, most probably during Q3, export duties on steel
products.
Export Tariffs on ferrochrome are up to 40 percent from 20
percent.
CEO GUY KONSBRUCK
"During the first half of 2021, the company continued to go
through difficult times. It is only towards the end of the period
that we saw first signs of improvements.
Nevertheless, we succeeded to reduce our debt despite a very
constrained cashflow situation. Our specialty segment remained
profitable despite very difficult markets. A starting price
increase was unfortunately accompanied by rises in logistic cost,
higher raw material cost and unfavorable USD exchange rates. We
foresee further improvements in H2. The FerroAlloys segment
continued to be weak, as the mining activity in South Africa was
further reduced.
The company is expecting proceeds from the Mogale Business
Rescue, (which was completed in the meantime via an asset sale),
and the disposal of one of its South African Mining Assets. These
inflows should improve the company's cashflow situation and we will
be in a position to focus on further debt reduction.
The raw materials and stainless steel markets are seeing a
general positive trend finally, and we expect to be able to see a
more stable business environment throughout the rest of the
year."
Helsinki, August 20, 2021
Afarak Group Plc
Board of Directors
For additional information, please contact:
Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com
https://www.globenewswire.com/Tracker?data=jA3RqBC-SCjXZcPC_UXdDz8zf2oS5hmLKsWbEqGetvb4J9Wu6ST5YfN0av4LpGmoKBZpMkl52Q0jpAy-Z2qs7frzKjjmbyG3az_piu7Xg12oVW3K7e09WVm-UrW0II6pfU2KRe3V1LkECCQgbwtrMgD1IWoOoKyzrjMLVg9Xtae0XZlTLNAyQ2J9UrVKDHV39FpAwvv-Nw_6RNTU3Gz4JwN5UXqRuzHCeymMgvQM75Ti0iTi7khiX9z214Kd0cyA1VbAbEHrbW5DsapvJtXQsg==
Financial reports and other investor information are available
on the Company's website: www.afarak.com.
Afarak Group is a specialist alloy producer focused on
delivering sustainable growth with a Speciality Alloys business in
southern Europe and a FerroAlloys business in South Africa. The
Company is listed on NASDAQ Helsinki (AFAGR) and the Main Market of
the London Stock Exchange (AFRK).
Distribution:
NASDAQ Helsinki
London Stock Exchange
Main media
www.afarak.com
Attachment
-- Afarak Quarterly 2021 H1 EN (Final)
https://ml-eu.globenewswire.com/Resource/Download/210fa3c4-de81-497c-b666-d957a311ad5e
(END) Dow Jones Newswires
August 20, 2021 01:00 ET (05:00 GMT)
Copyright (c) 2021 Dow Jones & Company, Inc.
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