The ferrous and non-ferrous scrap metals recycling group Sims Limited closed its 2021/22 financial year with strong growth in both turnover and earnings. "The overriding theme for FY 2022 is that we produced a record year, while having to manage some of the most volatile markets we have witnessed," group CEO Alistair Field told analysts during the annual earnings call last week. Thanks to "exceptional ferrous and non-ferrous prices and sales volumes," the company's sales revenues increased by 57 per cent compared to the previous year. According Mr Field, volumes and pricing also contributed to the near doubling of underlying earnings before interest and taxes (Ebit).
At the same time, inflationary pressure on costs had continued in the 2022 financial year and this pressure was thought "almost certain to continue through FY 2023," according to Mr Field. "We are currently looking hard at opportunities to reduce costs through productivity gains and other cost improvements to at least partially offset the impact of inflation," he said.
Ferrous scrap prices had retreated to $320 per tonne at the beginning of the current business year, but were now closer to the $400 (ca. €403) per tonne mark again. Mr Field expected the volatility would continue, but that the lows in 2022/23 would still be higher than those in the previous years....
