European Metal Recycling Ltd. (EMR) saw statutory earnings tumble to a loss of £155m (ca. €174m) in 2016, but the result had been heavily influenced by extraordinary items. The concern made -£221m in provisions which dragged the bottom line figure far into the red. On an underlying basis, the UK-based ferrous and non-ferrous scrap metals recycler reported a profit of £77m, up from a loss of £22m a year before. In the company's mandatory filing of annual accounts, EMR also reported improved turnover of £2.221bn. That was an increase of nearly 10 per cent in annual comparison.
Commenting on the state of the scrap markets in the reporting year, EMR said they had become more stable and liquid in 2016 after the precipitous commodity price declines which had made 2015 and "extremely challenging year". Although some of the prior-year market conditions continued to negatively affect trading in the first quarter of last year as well, "more normalised markets" and the impact of projects initiated late in 2015 had enabled EMR to improve its underlying profitability.
This article will appear in RW 21 on 18 October 2017. Online subscribers can access it already here: EMR Provisions