AFARAK GROUP: 2016 INTERIM RESULTS
16 August 2016 - 4:00PM
07:00 London, 09:00 Helsinki, 16 August 2016 -
Afarak Group Plc ("Afarak" or "the Company") (LSE: AFRK, NASDAQ:
AFAGR) Interim Report
AFARAK GROUP PLC'S INTERIM REPORT FOR 1 APRIL
- 30 JUNE 2016
Q2 HIGHLIGHTS (April - June 2016):
- Board approved additional capital redemption of EUR0.01 per
share
- Revenue decreased by 25.6% to EUR 39.5 (Q2/2015: 53.1) million as
a result of extreme weakness in demand and prices for Afarak's
products
- Processed material sold decreased by 11.2% to 28,214 (Q2/2015:
31,755) tonnes
- Despite the challenging external environment EBITDA remained
positive at EUR 0.8 (Q2/2015: 7.6) million and the EBITDA margin
was 2.0% (Q2/2015: 14.4%)
- EBIT was EUR -0.9 (Q2/2015: 5.8) million
- Profit for the period from continuing operations totalled EUR
-1.0 (Q2/2015: 5.7) million
- Ferrochrome production decreased by 3.8% to 26,786 (Q2/2015:
27,856) tonnes
- Tonnage mined decreased by 56.8% to 56,395 (Q2/2015: 130,417)
tonnes
- Cash flow from operations was EUR -0.4 (Q2/2015: 5.0) million and
liquid funds at 30 June were
EUR 13.2 (30 June 2015: 10.5) (31 March 2016: 21.7)
million
- The Group reduced its debt by EUR 4,7 million due to its strong
cash position notwithstanding the depressed markets
INTERIM DISTRIBUTION
The Board resolved on an
additional capital redemption of [EUR 0.01] per share, using
the authorization given by the AGM held on 11 May 2016. The
payment will be made from the company's fund
for invested unrestricted equity on16 September 2016.
KEY FIGURES (EUR million) |
Q2/16 |
Q2/15 |
Change |
H1/16 |
H1/15 |
Change |
FY2015 |
Revenue |
39.5 |
53.1 |
-25.6% |
80.3 |
93.8 |
-14.4% |
187.7 |
EBITDA |
0.8 |
7.6 |
-89.8% |
4.1 |
12.3 |
-66.9% |
17.2 |
EBITDA
margin |
2.0% |
14.4% |
|
5.1% |
13.1% |
|
9.2% |
EBIT |
-0.9 |
5.8 |
|
0.8 |
8.8 |
|
9.9 |
EBIT
margin |
-2.2% |
11.0% |
|
1.0% |
9.3% |
|
5.3% |
Earnings
before taxes |
-1.3 |
5.4 |
|
-0.4 |
8.1 |
|
6.5 |
Earnings
margin |
-3.2% |
10.2% |
|
-0.5% |
8.6% |
|
3.5% |
Profit from
continuing operations |
-1.0 |
5.7 |
|
-1.3 |
8.0 |
|
7.8 |
Profit
from discontinued operations |
0 |
0 |
|
0.5 |
0 |
|
0.8 |
Profit |
-1.0 |
5.7 |
|
-0.8 |
8.0 |
|
8.5 |
Earnings
per share, basic, EUR |
-0.00 |
0.02 |
|
-0.00 |
0.03 |
|
0.03 |
Commenting on the second quarter results, Alistair Ruiters, CEO,
said:
"The external environment in quarter two was one of the most
challenging in recent years. Selling prices continued to
plummet and the South African rand continued its rally against the
US dollar and the euro. These two factors have adversely
impacted the industry at large with more firms going into business
rescue.
Despite the difficult environment,
Afarak still managed to achieve a positive EBITDA in the first half
of the year. In the face of plummeting prices, we consciously stuck
to our policy of not compromising our selling prices in favour of
larger sales volumes and the downward price pressures hit our sales
volumes particularly in the Speciality Alloy segment. In
addition, our mining volumes were much less since no open-cast
mining happened at Mecklenburg.
Looking ahead, we are expecting
our performance to improve in the coming months. Improved
benchmark prices for charge chrome will favour Afarak and our
decision to switch one of the silicon manganese furnaces at our
Mogale plant to charge chrome should reflect positively in our
returns from the FerroAlloys segment. We are also expecting
increased business from the United States with respect to special
grade ferrochrome.
Internally, we are very much
focused on using this difficult period to evaluate our cost
structures across our operations. The Board and Management is
actively promoting cost saving initiatives and assessing ways to
streamline business processes with a view of strengthening our
sustainability.
Our balance sheet position remains
healthy. Over the past year, Afarak has further reduced its
debt levels and maintains a good cash position.
Afarak remains committed to its
shareholders and we aim to continue creating value for all our
stakeholders Looking ahead, market sentiment is positive and it is
expected to improve in the coming months. This improved
economic outlook and Afarak's balance sheet position gives the
Board sufficient comfort to issue the interim capital redemption
that was agreed during our last Annual General Meeting.
Disclosure procedure
Afarak follows
the disclosure procedure enabled by Disclosure obligation of the
issuer (7/2013) published by the Finnish Financial Supervision
Authority, and hereby publishes its Q2/2016 interim report enclosed
to this stock exchange release. The Interim Report is attached to
this release and is also available on the Company's website at
www.afarak.com.
Investor Conference Call
Management will host an investor conference call in English on 17
August 2016 at 14.00 Finnish time, 12.00 UK time. Please dial-in at
least 10 minutes beforehand, quoting the reference: 38313.
Finnish number +358 800 77 4579
UK number +44 (0) 844 762 0 762
AFARAK GROUP PLC
Alistair Ruiters
CEO
For additional information, please contact:
Afarak Group Plc
Alistair Ruiters, CEO, +358 50 372 1130,
alistair.ruiters@afarak.com
Melvin Grima, Finance Director, +356 2122 1566,
melvin.grima@afarak.com
Jean Paul Fabri, PR & Communications Manager, +356 2122 1566,
jp.fabri@afarak.com
Financial reports and other investor information are available on
the Company's website: www.afarak.com.
Afarak Group is a chrome mining and minerals 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
2016 INTERIM RESULTS
This
announcement is distributed by NASDAQ OMX Corporate Solutions on
behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely
responsible for the content, accuracy and originality of the
information contained therein.
Source: Afarak Group via Globenewswire
HUG#2035379
Afarak (LSE:AFRK)
Historical Stock Chart
From Apr 2024 to May 2024
Afarak (LSE:AFRK)
Historical Stock Chart
From May 2023 to May 2024