In This Article:
08:30 London, 10:30 Helsinki, 21 August 2020 - Afarak Group Plc ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)
FINANCIAL INTERIM RELEASE H1 2020
| H1/20 | H1/19 | 2019 | ||
| Revenue | EUR million | 44.9 | 82.8 | 144.9 |
| EBITDA | EUR million | -2.8 | -12.9 | -23.8 |
| EBIT | EUR million | -9.6 | -37.7 | -63.2 |
| Earnings before taxes | EUR million | -15.6 | -31.8 | -60.6 |
| Profit | EUR million | -16.1 | -29.2 | -58.9 |
| Earnings per share | EUR | -0.07 | -0.11 | -0.23 |
| EBITDA margin | % | -6.3 | -15.6 | -16.4 |
| EBIT margin | % | -21.3 | -45.6 | -43.6 |
| Earnings margin | % | -34.7 | -38.5 | -41.8 |
| Personnel (end of period) | 770 | 1,035 | 905 |
FIRST HALF 2020 HIGHLIGHTS
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Revenue decreased by 45.7% to EUR 44.9 (H1/2019: 82.8) million;
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Processed material sold decreased by 46.1% to 23,356 (H1/2019: 43,334) tonnes;
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Tonnage mined decreased by 46.4% to 102,659 (H1/2019: 191,497) tonnes due to lower mining activity at Stellite mine and no mining activity at Mecklenburg mine;
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The Group’s EBITDA increased to EUR -2.8 (H1/2019: -12.9) million and the EBITDA margin was -6.3% (H1/2019: -15.6%);
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An impairment write-down on other long term assets related to Mogale business of EUR 4.7 (H1/2019: 20.8) million;
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EBIT was EUR -9.6 (H1/2019: -37.7) million, with the EBIT margin at -21.3% (H1/2019: -45.6%);
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Profit for the period totalled EUR -16.1 (H1/2019: -29.2) million;
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Cash flow from operations stood at EUR -2.2 (H1/2019: -5.2) million;
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Net interest-bearing debt after deducting liquid funds amounted to EUR 54.7 (30.2) (31 December 2019: 55.1) million;
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Cash and cash equivalents at 30 June totalled EUR 6.1 (30 June 2019: 6.1) (31 December 2019: 5.4) million.
OUTLOOK FOR THE SECOND HALF OF 2020
The global economy has experienced an unprecedented turmoil due to COVID-19. We will continue to face a turbulent future with uncertainties throughout the globe on future expectation making forecasting future prices or volumes very difficult to predict.
The second half of the year is expected to continue on a weak tone until a vaccine for COVID-19 is found. The lower demand will have an impact on the Group’s sales and production cycles. Our profitability and cash flow position are strained which is leading to going concern difficulties. The Group may need to raise further funds to meet its liquidity needs during this period.
CEO GUY KONSBRUCK
“In the beginning of the first half of 2020 we were on the right track of recovery where we have seen stronger performance in the Speciality Alloys segment and recovery in the FerroAlloys segment. Unfortunately the global economic downturn originated by COVID-19 halted this and showed to be the most challenging business environment that I have ever experienced in my professional career. Having said this, we have still managed to show good signs of recovery when compared to H1 2019. Our specialty segment remained profitable. We have reduced our overall EBITDA loss by 78.2%, we have reduced our working capital by 36.3%, we have further reduced our total inventory by 36.7% and our total cost by 26.1%. I express my sincere gratitude to all colleagues for their substantial personal contributions to make this happen.