[ADVERT]
Share Name Share Symbol Market Type Share ISIN Share Description
Steppe Cement Ltd LSE:STCM London Ordinary Share MYA004433001 ORD NPV
  Price Change % Change Share Price Bid Price Offer Price High Price Low Price Open Price Shares Traded Last Trade
  0.50 1.19% 42.50 41.00 44.00 43.00 42.00 42.00 122,748 11:05:36
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Construction & Materials 54.7 9.6 3.7 11.0 93

Steppe Cement Limited Interim Results and General Market Update

17/09/2021 6:59am

UK Regulatory (RNS & others)


Steppe Cement (LSE:STCM)
Historical Stock Chart


From Sep 2021 to Dec 2021

Click Here for more Steppe Cement Charts.

TIDMSTCM

RNS Number : 1253M

Steppe Cement Limited

17 September 2021

Steppe Cement Ltd

Interim Results for the Half Year ended 30 June 2021

and General Market Update

1. Interim Results

Steppe Cement Ltd ("Steppe Cement" and "the Company") posted a consolidated profit after tax of USD6.2 million for the six months ended 30 June 2021, an increase of 52%.

 
                                            6 months       6 months       % of change 
                                              ended          ended 
                                             30 June        30 June 
                                               21             20 
     Sales (Tonnes)                         840,661        764,752            10% 
                                       -------------  -------------  ---------------- 
     Consolidated turnover KZT 
      million                                16,657         13,677            22% 
                                       -------------  -------------  ---------------- 
     Consolidated turnover (USD 
      Million)                                39.5           33.8             17% 
                                       -------------  -------------  ---------------- 
     Consolidated profit after 
      tax (USD Million)                       6.2            4.1              52% 
                                       -------------  -------------  ---------------- 
     Earnings per share (Cents)               2.8            1.9              47% 
                                       -------------  -------------  ---------------- 
     Average exchange rate (USD/KZT)          424            405              -5% 
                                       -------------  -------------  ---------------- 
 
   --    The Company managed to increase cement prices during the first half of 2021. 

-- The average ex-factory price increased from 14,727 KZT /tonne (USD36 per tonne) to 16,571 KZT/tonne (USD39 per tonne) or 11% during the period.

   --    Steppe Cement's gross margin increased from 40% to 46% in USD terms due to price increases. 

-- Selling expenses per tonne increased in USD terms by 16% and in KZT by 21% due to increases in transportation prices from the national railways.

   --    General and administrative expenses increased by 16% in USD. 

-- The Kazakh Tenge average rate depreciated by 5% compared to the first half of 2020 but only translated in a small foreign exchange loss of USD 0.2 million as the company maintains very small loan balances in USD.

-- The Company generated operating profit before working capital changes of USD12.9 million in 1H 2021 against USD 11 million in 2020.

-- Kazakhstan GDP increased by 2.3% in 1H2021 compared to 1H2020 rebounding from a drop of 1.4% in the first quarter of 2021.

   --    Reported inflation has been 7% up to the end of August 2021. 

2. Production costs

-- Production costs increased by 5% in KZT mostly due to the higher electricity cost, diesel and spare parts for maintenance.

3. Update on the Kazakh cement market

-- The Kazakh cement market increased by 28% during the first half of the year. The increase is due mostly to the program set in place by the government that allows partial withdrawal from personal pension funds for real estate investment or health reasons. It was done to stimulate the economy and it may bring total cement consumption in 2021 to 10.5 to 11 million tonnes in 2021, an increase of more than 1 million tonnes from 2020.

-- Steppe Cement's local market share decreased from 16.5% in 1H2020 to 15% in 1H2021 due to the strong growth in the overall market. We expect to maintain this share for the full year. Exports represented 9% of the volumes in the 1H2021 from 11% last year.

-- Imports into Kazakhstan have increased to 0.4 million tonnes in 2021 and represent 7% of the market.

   --    Exports from Kazakhstan have increased slightly to 0.97 million tonnes. 
   --    Exports from Kazakhstan represent 17% of local production from 18% last year. 

-- Overall production of all factories in Kazakhstan has increased by 1 million tonnes to 5.7 million tonnes for the 1H2021 as closures in the smaller factories were balanced by increases in production by Gezhuoba Cement and Alacem.

-- Currently 82% of production in the country is manufactured from dry lines up from 80% in 2020.

4. Financing

-- Interest expenses on bank debt were reduced to USD 0.37 million from USD 0.41 million in 2020 mostly on subsidised loans while we reduced interest expenses on lease liabilities to USD 0.13 million from USD 0.35 million after the application of IFRS 16 on the 3 years wagon leases. The rental on those wagons was considered selling expenses previously.

-- Steppe Cement recorded a net cash position of USD7.4 million compared to net cash of USD6.4 million as of 30 June 2020.

-- The borrowings of the Company as of 30 June 2021 were USD6.1 million while we carried a cash balance of USD 13.5 million. For comparison, on 30 June 2020 we had USD3.2 million in borrowings and USD9.6 million in cash.

-- As of 15 September 2021 after paying the dividend, the financial debt was the equivalent of USD 5.6 million (all denominated in KZT) and the cash was USD10.5 million.

   --    We have maintained the working capital lines available for the winter. 

A pdf copy of the announcement and the full interim financial statements is available on the company's website at www.steppecement.com .

Steppe Cement's AIM nominated adviser and broker is RFC Ambrian Limited.

Nominated Adviser: Contact Stephen Allen or Andrew Thomson at +61 8 9480 2500.

Broker: Contact Charlie Cryer at +44 20 3440 6800

SUMMARY OF INTERIM FINANCIAL STATEMENTS

FOR THE PERIODED 30 JUNE 2021 (UNAUDITED)

(In United States Dollars)

The Notes to the Interim Financial Statements form an integral part of the Condensed Financial Statements. Please visit the Company's website at www.steppecement.com to view the full interim financial statements.

STEPPE CEMENT LTD

(Incorporated in Labuan FT, Malaysia under the Labuan Companies Act, 1990)

AND ITS SUBSIDIARY COMPANIES

CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS

FOR THE PERIODED 30 JUNE 2021 (UNAUDITED)

 
                                                   The Group                       The Company 
                                                6 months ended                   6 months ended 
                                        30 June 2021       30 June 2020       30 June       30 June 
                                                                                 2021          2020 
                                             USD'000            USD'000       USD'000       USD'000 
 
     Revenue                                  39,534             33,786           691           701 
 
     Cost of sales                          (21,230)           (20,285)             -             - 
                                   -----------------  -----------------  ------------  ------------ 
 
     Gross profit                             18,304             13,501           691           701 
 
     Selling expenses                        (6,577)            (5,162)             -             - 
 
     General and administrative 
     expenses                                (2,965)            (2,566)         (157)         (135) 
                                   -----------------  -----------------  ------------  ------------ 
 
     Operating profit                          8,762              5,773           534           566 
     Interest income                              78                112             -             ^ 
     Finance costs                             (475)              (766)             -             - 
     Net foreign exchange 
      (loss)/gain                              (147)              (571)           (1)             3 
     Other income, net                         (511)                248             -            82 
                                   -----------------  -----------------  ------------  ------------ 
 
     Profit before income 
      tax                                      7,707              4,796           533           651 
 
     Income tax expense                      (1,515)              (736)             -             - 
                                   -----------------  -----------------  ------------  ------------ 
 
     Profit for the period                     6,192              4,060           533           651 
                                   =================  =================  ============  ============ 
 
     Attributable to: 
     Shareholders of the 
      Company                                  6,192              4,060           533           651 
 
     Earnings per share: 
 
     Basic and diluted 
      (cents)                                    2.8                1.9 
                                   =================  ================= 
 

^ Insignificant amount.

CONDENSED CONSOLIDATED STATEMENT OF PROFIT AND LOSS AND OTHER COMPREHENSIVE INCOME FOR THE PERIODED 30 JUNE 2021 (UNAUDITED)

 
                                                      The Group                         The Company 
                                                   6 months ended                      6 months ended 
                                           30 June 2021       30 June 2020       30 June 2021       30 June 
                                                                                                       2020 
                                                USD'000            USD'000            USD'000       USD'000 
 
     Profit for the period                        6,192              4,060                533           651 
 
     Other comprehensive 
      loss: 
 
     Item that may be reclassified 
      subsequently to profit 
      or loss 
 
     Exchange differences 
      arising on translation 
      of foreign subsidiary 
      companies                                   (902)            (3,499)                  -             - 
 
     Total other comprehensive 
      loss for the period                         (902)            (3,499)                  -             - 
                                      -----------------  -----------------  -----------------  ------------ 
 
     Total comprehensive 
      income for the period                       5,290                561                533           651 
                                      =================  =================  =================  ============ 
 
     Attributable to: 
     Shareholders of the 
      Company                                     5,290                561                533           651 
                                      =================  =================  =================  ============ 
 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2021 (UNAUDITED)

 
                                                    The Group                         The Company 
                                           Unaudited           Audited          Unaudited           Audited 
                                        30 June 2021       31 Dec 2020       30 June 2021       31 Dec 2020 
                                             USD'000           USD'000            USD'000           USD'000 
     Assets 
     Non-Current Assets: 
     Property, plant 
      and equipment                           49,461            48,856                  -                 - 
     Right-of-use assets                       2,571             3,483 
     Investment in subsidiary 
      companies                                    -                 -             36,307            36,294 
     Loan to subsidiary 
      company                                      -                 -             30,100            30,110 
     Advances                                     11                 -                  -                 - 
     Other assets                              1,887             1,901                  -                 - 
 
     Total Non-Current 
      Assets                                  53,930            54,240             66,407            66,404 
                                   -----------------  ----------------  -----------------  ---------------- 
 
     Current Assets 
     Inventories                              11,766            11,098                  -                 - 
     Trade and other 
      receivables                              3,438             2,332              7,807             6,776 
     Other assets                                  -               305                  -                 - 
     Income tax receivable                     1,037             1,435                  -                 - 
     Loans and advances 
      to subsidiary companies                      -                 -                 40                40 
     Advances and prepaid 
      expenses                                 4,915             3,644                 18                 6 
     Cash and cash equivalents                13,470             8,214                846             1,353 
 
     Total Current Assets                     34,626            27,028              8,711             8,175 
                                   -----------------  ----------------  -----------------  ---------------- 
 
     Total Assets                             88,556            81,268             75,118            74,579 
                                   =================  ================  =================  ================ 
 
 
                                                       The Group                     The Company 
                                           Unaudited           Audited       Unaudited           Audited 
                                        30 June 2021       31 Dec 2020         30 June       31 Dec 2020 
                                                                                  2021 
                                             USD'000           USD'000         USD'000           USD'000 
 
     Equity and Liabilities 
 
     Capital and Reserves 
     Share capital                            73,761            73,761          73,761            73,761 
     Revaluation reserve                       2,222             2,370               -                 - 
     Translation reserve                   (119,416)         (118,514)               -                 - 
     Retained earnings                       106,665           100,325           1,164               631 
                                   -----------------  ----------------  --------------  ---------------- 
 
     Total Equity                             63,232            57,942          74,925            74,392 
                                   -----------------  ----------------  --------------  ---------------- 
 
     Non-Current Liabilities 
     Borrowings                                3,587             2,368               -                 - 
     Lease liabilities                         1,057             2,077               -                 - 
     Deferred taxes                            4,728             4,560               -                 - 
     Deferred income                           1,762             1,492               -                 - 
     Provision for site 
      restoration                                177               151               -                 - 
 
     Total Non-Current 
      Liabilities                             11,311            10,648               -                 - 
                                   -----------------  ----------------  --------------  ---------------- 
 
     Current liabilities 
     Trade and other 
      payables                                 5,116             4,075               -                 - 
     Accrued and other 
      liabilities                              3,139             1,638             193               187 
     Borrowings                                2,470             4,429               -                 - 
     Lease liabilities                         1,914             1,831               -                 - 
     Taxes payable                             1,374               705               -                 - 
 
     Total Current Liabilities                14,013            12,678             193               187 
                                   -----------------  ----------------  --------------  ---------------- 
 
     Total Liabilities                        25,324            23,326             193               187 
                                   -----------------  ----------------                  ---------------- 
 
     Total Equity and 
      Liabilities                             88,556            81,268          75,118            74,579 
                                   =================  ================  ==============  ================ 
 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIODED 30 JUNE 2021 (UNAUDITED)

 
                                         Non-distributable                         Distributable 
     The Group               Share             Revaluation       Translation            Retained         Total 
                           capital                 reserve           reserve            earnings 
                           USD'000                 USD'000           USD'000             USD'000       USD'000 
 
     Balance as at 
      1 January 
      2021                  73,761                   2,370         (118,514)             100,325        57,942 
                     -------------  ----------------------  ----------------  ------------------  ------------ 
     Profit for the 
      period                     -                       -                 -               6,192         6,192 
     Other 
      comprehensive 
      loss                       -                       -             (902)                   -         (902) 
                     -------------  ----------------------  ----------------  ------------------  ------------ 
     Total 
      comprehensive 
      income/(loss) 
      for the 
      period                     -                       -             (902)               6,192         5,290 
     Transfer of 
      revaluation 
      reserve 
      relating to 
      the 
      depreciation 
      of property, 
      plant and 
      equipment 
      through 
      use                        -                   (148)                 -                 148             - 
                     -------------  ----------------------  ----------------  ------------------  ------------ 
 
     Balance as at 
      30 June 
      2021                  73,761                   2,222         (119,416)             106,665        63,232 
                     =============  ======================  ================  ==================  ============ 
 
 
                                         Non-distributable                         Distributable 
     The Group               Share             Revaluation       Translation            Retained         Total 
                           capital                 reserve           reserve            earnings 
                           USD'000                 USD'000           USD'000             USD'000       USD'000 
 
     Balance as at 
      1 January 
      2020                  73,761                   2,016         (113,286)             100,386        62,877 
                     -------------  ----------------------  ----------------  ------------------  ------------ 
     Profit for the 
      period                     -                       -                 -               4,060         4,060 
     Other 
      comprehensive 
      (loss)/income              -                       -           (3,499)                   -       (3,499) 
                     -------------  ----------------------  ----------------  ------------------  ------------ 
     Total 
      comprehensive 
      income 
      for the 
      period                     -                       -           (3,499)               4,060           561 
     Transfer of 
      revaluation 
      reserve 
      relating to 
      the 
      depreciation 
      of property, 
      plant and 
      equipment 
      through 
      use                        -                   (157)                 -                 157             - 
                     -------------  ----------------------  ----------------  ------------------  ------------ 
 
     Balance as at 
      30 June 
      2020                  73,761                   1,859         (116,785)             104,603        63,438 
                     =============  ======================  ================  ==================  ============ 
 
 
 
     The Company                               Share capital            Retained earnings            Total 
 
                                                     USD'000                      USD'000          USD'000 
 
     Balance as at 1 January 2021                     73,761                          631           74,392 
     Total comprehensive income for the 
      period                                               -                          533              533 
     Balance as at 30 June 2021                       73,761                        1,164           74,925 
                                          ==================   ==========================   ============== 
 
     Balance as at 1 January 2020                     73,761                        1,577           75,338 
     Total comprehensive income for the 
      period                                               -                          651              651 
     Balance as at 30 June 2020                       73,761                        2,228           75,989 
                                          ==================   ==========================   ============== 
 
 

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD ENDED 30 JUNE 2021 (UNAUDITED)

 
                                                    The Group                       The Company 
                                                  6 months ended                   6 months ended 
                                            30 June 2021       30 June       30 June 2021       30 June 
                                                                  2020                             2020 
                                                 USD'000       USD'000            USD'000       USD'000 
 
     OPERATING ACTIVITIES 
     Profit before income 
      tax                                          7,707         4,796                533           651 
 
     Adjustments for: 
     Depreciation of property, 
      plant and equipment                          3,733         3,559                  -             - 
     Depreciation of right-of-use 
      assets                                       1,031         1,446                  -             - 
     Adjustments for non-cash 
      items                                          478         1,192            (1,030)         (329) 
                                       -----------------  ------------  -----------------  ------------ 
 
     Operating Profit/(Loss) 
      Before Working Capital 
      Changes                                     12,949        10,993              (497)           322 
 
     (Increase)/ Decrease 
      in: 
     Inventories                                 (1,607)           541                  -             - 
     Trade and other receivables,                (2,175)       (1,411)               (12)         (872) 
     advances and prepaid 
      expenses 
     Loans and advances from 
      subsidiary companies                             -             -                (3)            10 
     Increase in: 
     Trade and other payables,                     3,317         2,251                  5            16 
     accrued and other liabilities 
 
     Cash Generated From/(Used 
      In) Operations                              12,484        12,374              (507)         (524) 
     Income tax paid                               (730)         (185)                  -             - 
     Interest paid                                 (299)         (580)                  -             - 
                                       -----------------  ------------  -----------------  ------------ 
 
     Net Cash Generated From/(Used 
      In) Operating Activities                    11,455        11,609              (507)         (524) 
                                       -----------------  ------------  -----------------  ------------ 
 
 
     INVESTING ACTIVITIES 
     Purchase of property, 
      plant and equipment                        (4,529)       (2,644)                  -             - 
     Purchase of other assets                       (18)             -                  -             - 
     Interest received                                78           112                  -           330 
                                       -----------------  ------------  -----------------  ------------ 
 
     Net Cash (Used In)/Generated 
      From Investing Activities                  (4,469)       (2,532)                  -           330 
                                       -----------------  ------------  -----------------  ------------ 
 
 
     FINANCING ACTIVITIES 
     Proceeds from borrowings                      3,350         2,098                  -             - 
     Repayment from borrowings                   (4,089)       (9,003)                  -             - 
     Payment of lease liabilities                  (877)       (1,133)                  -             - 
                                       -----------------  ------------  -----------------  ------------ 
 
     Net Cash Used In Financing 
      Activities                                 (1,616)       (8,038)                  -             - 
                                       -----------------  ------------  -----------------  ------------ 
 
     NET INCREASE/(DECREASE) 
      IN CASH AND CASH EQUIVALENTS                 5,370         1,039              (507)         (194) 
     EFFECTS OF FOREIGN EXCHANGE 
      RATE CHANGES                                 (114)         (486)                  -             - 
     CASH AND CASH EQUIVALENTS 
      AT BEGINNING OF THE PERIOD                   8,214         9,014              1,353           262 
                                       -----------------  ------------  -----------------  ------------ 
 
     CASH AND CASH EQUIVALENTS 
      AT END OF THE PERIOD                        13,470         9,567                846            68 
                                       =================  ============  =================  ============ 
 
 

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.

END

IR EAANXFSLFEEA

(END) Dow Jones Newswires

September 17, 2021 01:59 ET (05:59 GMT)

1 Year Steppe Cement Chart

1 Year Steppe Cement Chart

1 Month Steppe Cement Chart

1 Month Steppe Cement Chart
ADVFN Advertorial
Your Recent History
LSE
STCM
Steppe Cem..
Register now to watch these stocks streaming on the ADVFN Monitor.

Monitor lets you view up to 110 of your favourite stocks at once and is completely free to use.

By accessing the services available at ADVFN you are agreeing to be bound by ADVFN's Terms & Conditions

P: V:gb D:20211204 05:08:30