Sims revisits profitable 2021 conditions

Sims revisits profitable 2021 conditions

Company’s annual report cites Alumisource acquisition in U.S. for healthy nonferrous volume increase.

November 3, 2021

Global publicly traded recycling company Sims Ltd. says its newly released fiscal 2021 annual report “highlights the company's strong and sustained recovery after a previously challenging year.”

Covering the period from July 1, 2020, to June 30 of this year, the report portrays the rebound in the recycling sector and the wider economy during that time, Sims says. “Although the global COVID-19 pandemic continued to put pressure on operating conditions, Sims Ltdl finished the year with an underlying EBIT (earnings before interest and taxes) of $287.3 million–up 768 percent over the prior year,” the firm says.

Geoffrey Brunsdon, chairman and an independent nonexecutive director, says, “The company not only experienced growth through acquisitions, increased our market share and made progress on new site development, but Sims Ltd. has also remained steady and well-positioned with a strong balance sheet and lower cost base as compared to fiscal year 2019, thereby enabling the company to capitalize on opportunities when and if presented.”

Alistair Field, Sims group CEO and managing director, adds, “After an underwhelming fiscal year 2020, the recovery that the second half of the fiscal year 2021 presented was welcomed.” He calls the improved EBIT figure “an indication of the trajectory of the business.”

The company also updates the strategic growth plan it unveiled in 2019 and mentions an acquisition in the United States as having provided a critical step. The acquisition of Pittsburgh-based Alumisource Corp. early this year has resulted in “24 percent forecasted growth in Sims Metal North America nonferrous retail volumes,” Sims says.

Another acquisition, “of an existing purpose-built recycling facility” in Australia, is leading to “forecasted growth in Sydney’s rapidly growing southwest market,” the company indicates.

Converting auto shredder residue, or ASR, and other byproducts into energy remains part of the company’s plan in its current fiscal year, according to the annual report.

A summary of the report says Sims “received planning development approval for the Sims Resource Renewal pilot facility at Rocklea in Queensland, Australia, with operations anticipated to begin the first half of calendar year 2022.”

Sims says it also is preparing to produce hydrogen as a waste byproduct at Sims Resource Renewal's planned Campbellfield facility in Victoria, Australia, “based on commercial demonstration results and financial analysis.”

The new annual report, along with the company’s latest sustainability report, are available to view or download on this web page.