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Sims forecasts sharp rise in underlying Ebit

Portrait of Sims CEO Alistair Field
Sims CEO Alistair Field: Recurring theme for all
major businesses in 1Q FY22 was strong margins.
11.11.2021 − 

The Australian American metals recycling business Sims Ltd has continued to benefit from strong margins for ferrous and non-ferrous products in the first quarter of its 2021/22 financial year. Growth was partly curbed by volatile freight prices and the emergence of inflational pressures on business costs. 

In a trading update released ahead of its annual general meeting on 10 November, the concern said it now expected to post underlying earnings before interest and tax (Ebit) of between AUD310m and AUD350m in its first financial half, ending 31 December. This is equivalent to about €200m to €225m. The forecast figure would represent an approximately six-fold increase on the prior year's first half, CEO Alistair Field told shareholders at the AGM. By way of comparison, the group reported underlying Ebit of slightly under AUD390m for the full 2021 financial year – the best in 13 years.

The largest contribution to concern performance thus far in the reporting period had been made by Sims' North American businesses. In the UK, the metals recycling business achieved strong trading margins, while intake and sales volumes were lower year-over-year "due to a combination of yard closures and Covid-19 impacts", Mr Field explained.

Read the full report in the next issue of EUWID Recycling & Waste Management. The E-Paper appears at midday on 17 November.

 

 

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