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Highlights
- Sims is a metal recycling and circular solutions for technology provider, which was listed on ASX on 21 October 2005
- In 1HFY24, the company recorded 5.4% YoY increase in EBITDA to AUD 284.7 million
- The highest stake in the company is held by Mitsui Co & td with a shareholding of 17.31%
Sims Limited (ASX:SGM) is an Australian company specialising in metal recycling and circular solutions for technology. The company's main operations involve purchasing, processing, and selling ferrous and non-ferrous recycled metals.
During the six months ended 13 December 2023 (1HFY24), sales revenue of SGM increased by around 7.4% YoY to AUD 4,114.4 million, underpinned by acquisition volumes which offset the impact of challenging export markets. The period saw a 5.4% YoY rise in EBITDA to AUD 284.7 million. In the six months, statutory NPAT dropped to AUD 65.8 million, compared to AUD 101.0 million in the previous corresponding period because of higher interest expenses, inflationary pressure on costs and lower trading margins.
Top 10 shareholders of SGM
The top 10 shareholders of SGM have around 55.05% shareholding in the firm. The highest stake in the company is held by Mitsui Co & td with a shareholding of 17.31%.
Recent business update
The company notified that its chairman and independent non-executive director, Geoff Brunsdon had retired on 25 March 2024. Philip Bainbridge would take up the position of the new chairman, effective from same date.
Outlook
On the back of its cost reduction efforts, SGM expects its underlying EBITDA to be higher in the second half over the first half of FY24. The company has shown confidence in its long to medium term business prospect as it observed positive effects of initiatives on domestic sales channels and raw material procurement in the USA.
Share performance of SGM
SGM shares closed 0.16% down at AUD 12.38 apiece on 15 April 2024. In the last 12 months, SGM’s share price has decreased by almost 24.70% and in the past three months, it has dropped by 10.68%.
The 52-week high of SGM is AUD 17.085, recorded on 12 April 2024, and the 52-week low is AUD 11.600, recorded on 15 March 2024.
SGM Daily Technical Chart, Source: EODHD/Others
Note 1: Past performance is neither an Indicator nor a guarantee of future performance.
Note 2: The reference date for all price data, and currency, is 15 April 2024. The reference data in this report has been partly sourced from EODHD/Others.
Disclaimer
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