Afarak Group Plc Afarak Group : 3rd Quarter Results
November 11 2016 - 2:00AM
UK Regulatory
TIDMAFAGR
07:00 London, 09:00 Helsinki, 11 November 2016 - Afarak Group Plc
("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR) Interim Report
AFARAK GROUP PLC'S UNAUDITED INTERIM REPORT FOR 1 JULY - 30 SEPTEMBER
2016
Q3 HIGHLIGHTS (July-September 2016):
Afarak displayed resilience in the face of a challenging quarter and is
well-positioned to benefit from the current market upswing.
Health, safety & environment
-- One worker, Nelson Maurison Msimango, succumbed to grievous injuries
sustained followed at accident at Mogale plant
Investor highlights
-- Capital redemption of EUR 2.6 (0.0) million approved and paid during the
quarter
Financial highlights
-- Revenue decreased by 35.4% to EUR 28.9 (Q3/2015: 44.8) million
-- EBITDA was EUR -2.8 (Q3/2015: 1.3) million and the EBITDA margin was
-9.8% (Q3/2015: 2.8%) EBIT was EUR -4.5 (Q3/2015: -0.7) million and the
EBIT margin was -15.7% (Q3/2015: -1.5%)
-- Profit for the period from continuing operations totalled EUR -3.2
(Q3/2015: -1.0) million
-- Cash flow from operations was EUR -5.5 (Q3/2015: 9.9) million and liquid
funds at 30 September was EUR 7.0 (30 September 2015: 22.3) (30 June
2016: 13.2) million
Operational highlights
-- Processed material sold decreased by 11.7% to 18,023 (Q3/2015: 20,419)
tonnes
-- Production of processed material decreased by 4.4% to 18,489 (Q3/2015:
19,348) tonnes
-- Tonnage mined decreased by 64.2% to 45,487 (Q3/2015: 127,004) tonnes
KEY FIGURES (EUR FY
million) Q3/16 Q3/15 Change Q1-Q3/16 Q1-Q3/15 Change 2015
Revenue 28.9 44.8 -35.4% 109.2 138.5 -21.2% 187.7
EBITDA -2.8 1.3 -326.0% 1.2 13.5 -91.0% 17.2
EBITDA margin -9.8% 2.8% 1.1% 9.8% 9.2%
EBIT -4.5 -0.7 -3.7 8.1 9.9
EBIT margin -15.7% -1.5% -3.4% 5.8% 5.3%
Earnings before
taxes -4.2 -2.0 -4.6 6.1 6.5
Earnings margin -14.6% -4.5% -4.2% 4.4% 3.5%
Profit from
continuing
operations -3.2 -1.0 -4.5 7.0 7.8
Profit from
discontinued
operations 1.0 0 1.5 0 0.8
Profit -2.2 -1.0 -3.0 7.0 8.5
Earnings per share,
basic, EUR -0.01 0.00 -0.01 0.03 0.03
Commenting on the third quarter results, Alistair Ruiters, CEO, said:
"The company endured a very challenging quarter. It was extremely
painful to deal with the loss of one of our colleagues, Nelson Maurison
Msimango, who passed away following a fatal accident at our Mogale
plant. We are continuing with our efforts to enhance health and safety
procedures at our plants.
Markets remained subdued as prices for many of our products continued to
slide accompanied by tapered demand. With prices gravitating downwards,
our sales volumes in the speciality alloy segment were hit hard. Our
mining and production volumes were lower due to safety stoppages at our
mines and due to the closure of Mogale Alloys plant following the
fatality. In response, Afarak focused its efforts on prudent working
capital management, the procurement of strategic raw materials at
competitive prices and debt collection. Our sales of materials,
particularly charge chrome, remained satisfactory despite the
seasonality associated with weak demand in the third quarter.
We are seeing a recovery in prices. Benchmark prices for charge chrome
have accelerated and demand is gaining traction. This improved market
sentiment together with our strong managerial and production
capabilities should further support our efforts to generate value for
our shareholders."
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 Q3/2016 unaudited 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 11
November 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 (0) 800 774 579
UK number +44 (0) 844 229 0 900
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
The information contained within this announcement is deemed by the
Company to constitute inside information as stipulated under the Market
Abuse Regulations (EU) No. 596/2014 ('MAR'). Upon the publication of
this announcement via Regulatory Information Service ('RIS'), this
inside information is now considered to be in the public domain.
Q3 RESULTS EN: http://hugin.info/143997/R/2056265/770192.pdf
This announcement is distributed by Nasdaq Corporate Solutions on behalf
of Nasdaq 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
http://www.afarakgroup.com
(END) Dow Jones Newswires
November 11, 2016 02:00 ET (07:00 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
Afarak (LSE:AFRK)
Historical Stock Chart
From Apr 2024 to May 2024
Afarak (LSE:AFRK)
Historical Stock Chart
From May 2023 to May 2024