The Group’s principal activity during the year remained the international trading and distribution of steel and steel making raw materials.
- Sourcing and delivery of 3.3mt of steel and raw materials during the year, an increase of 7% on the prior year
- Total revenue of US$1.53bn in 2020 (FY2019: US$1.74bn) impacted by:
- higher proportion of raw material shipments
- the Covid related reducing price environment for much of the year.
- Gross Profit of US$62m, before exceptional items
- Gross margin at 4.1% (FY2019: 3.9%)
- EBITDA(1) for 2020 of US$18m (FY2019: US$19m)
- Profit before tax, exceptional items and transaction costs(2) of US$7.3m (FY2019: US$5.5m) with lower pricing environment offset by:
- reduced overheads of US$45m (FY2018: US$50m)
- a further shift to more cost-effective financing facilities – US$4.5m reduction in financing costs achieved in 2020.
- Continued optimisation of the Group’s financing structure, with c.US$800m of available working capital financing, made up of over US$500m of bilateral trade finance facilities and c.US$300m of local borrowing base facilities
- On 30 June 2020, Cedar Holdings completed the acquisition of the Stemcor Group
- On 31 December 2020, Stemcor USA completed the acquisition of Stonerock Shipping.
Steve Graf, CEO of the Stemcor Group, commented:
“2020 began with slight optimism on pricing and demand only to find that by the end Q1 CV19 suddenly restricted global economic activity, impacting all of our markets. Fortunately, I can report that our employees have largely withstood the virus in good health. Additionally, our prior efforts on streamlining offices, efficiency improvements and use of mobile technology allowed us to quickly and successfully transition to a “work from home” protocol. In the face of extreme uncertainty and challenges in Q2, our employees cleanly executed existing orders whilst identifying opportunistic trade flows that contributed to steadily improving H2 profitability and a strong order book to start 2021. The acquisition of the Stemcor Group, by Cedar Holdings, closed as planned in June 2020, a tribute to the dedication and professionalism of both organisations under the circumstances. Great strides have already been made on integration and synergies, leading to new trade flows under development. Ending 2020 with solid profitability on increased volumes and with a bright outlook, despite the havoc of CV19, is a significant achievement for the Group and each employee. Our success in this environment wouldn’t have been possible without the strong relationships and support we enjoy with our customers, suppliers, lenders and all service providers.”
1. Operating profit before exceptional & restructuring items, transaction costs and depreciation
2. Profit before taxation, movements on financial assets and liabilities at fair value through profit and loss and transaction costs