Find Your Broker
Share Name Share Symbol Market Type Share ISIN Share Description
Steppe Cement 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
  +0.00p +0.00% 20.50p 19.00p 22.00p 20.50p 20.50p 20.50p 0 08:00:00
Industry Sector Turnover (m) Profit (m) EPS - Basic PE Ratio Market Cap (m)
Construction & Materials 48.8 1.4 0.4 44.0 44.90

Steppe Cement Limited Interim Results

18/09/2018 7:00am

UK Regulatory (RNS & others)


Steppe Cement (LSE:STCM)
Historical Stock Chart

6 Months : From Jul 2018 to Jan 2019

Click Here for more Steppe Cement Charts.

TIDMSTCM

RNS Number : 0518B

Steppe Cement Limited

18 September 2018

Steppe Cement Ltd

Interim Results for the Half Year 30 June 2018

and General Market Update

1. Interim Results

Steppe Cement Ltd ("Steppe Cement" and "the Company") posted a consolidated profit after tax of USD0.2 million for the six months ended 30 June 2018.

 
                                            6 months       6 months        % of 
                                              ended          ended         change 
                                             30 June        30 June 
                                               18             17 
     Sales (Tonnes)                         738,228        650,333          14% 
                                       -------------  -------------  ------------ 
     Consolidated turnover KZT 
      million                                10,539         8,553           23% 
                                       -------------  -------------  ------------ 
     Consolidated turnover (USD 
      Million)                                32.8           26.8           22% 
                                       -------------  -------------  ------------ 
     Consolidated profit (loss) 
      after tax (USD Million)                 0.2           (0.3) 
                                       -------------  -------------  ------------ 
     Profit (loss) per share 
      (Cents)                                 0.1           (0.2) 
                                       -------------  -------------  ------------ 
     Average exchange rate (USD/KZT)          326            319 
                                       -------------  -------------  ------------ 
 

-- The Company continued its strategy of focusing on price rather than in volume until the summer.

-- The average ex-factory price increased from 11,147 KZT /tonne to 11,560 KZT /tonne or 4% during the period.

-- Steppe Cement's gross margin increased from 27% to 32% in USD terms mostly because of better pricing in markets further from the factory.

   --     Selling expenses increased as sales to the south and exports grew significantly. 

-- Administrative expenses were maintained relative to turnover and were increased compared to 2017 due to bonus payment.

-- The Kazakh Tenge depreciated slightly in the first half by 2% compared to the first half of 2017. The company booked foreign exchange losses of USD 0.5 million in the first half of 2018 compared to a gain of USD 0.57 million in 1H2017.

-- The company generated operating profit before working capital changes of USD 5.4 million in 1H 2018 against USD 4.9 million in 2017.

   --     The Kazakhstan economy grew at 4.1% in the first half 2018. 
   --     Reported inflation has been 2.9% until the end of August 2018. 

2. Production costs

-- Cement production costs per tonne were maintained in KZT as inflation was offset by the higher volumes achieved.

3. Update on the Kazakh cement market

-- The Kazakh cement market grew at 5% during the first half of the year. Steppe Cement expects a market of about 9 million tonnes for the full year 2018 similar to 2017.

-- Steppe Cement increased its local market share from 14.5% in 1H2017 to 15.5% in 1H2018. We expect to achieve 17% for the full year. Exports represented 12% of the volumes in the 1H2018 from 10% last year.

-- Imports into Kazakhstan have increased by 30% in 2018 to 0.34 million tonnes and they represent 8% of the market up from 6% last year.

-- Exports from Kazakhstan have increased from 0.45 million tonnes to 0.92 million tonnes in the first half of 2018, mostly due to demand from Uzbekistan.

   --     Exports from Kazakhstan now represent 19% of local production up from 11% last year. 

-- Overall production of all factories in Kazakhstan has increased by 14% to 4.8 million tonnes for the 1H2018. This increase will most likely not be maintained in the second half.

-- Currently 78% of production in the country is coming from dry lines, an increase of 4% compared to last year's level.

   --     Construction remains strong particularly in the west and south of the country. 

4. Financing

The debt position of the company as of 30 June 2018 comprised:

   --     A capital loan of USD 4 million from Halyk bank at 6% p.a. interest due in 2019. 

-- A long-term USD 7 million loan from Halyk Bank for the purchase of the wagons and repayable monthly till November 2021 at 6.5% p.a. and secured with the pledge of the wagons.

-- Loans of KZT1,688 million and KZT 580 million from Halyk Bank JSC subsidised by the government for capital investment at 6%.

-- We have maintained KZT3.9 billion of available working capital lines from Halyk Bank, Altyn Bank and VTB Bank. The current rates are 6% p.a. in USD and 12% p.a. in KZT.

As of 30 June 2018 we had the equivalent of USD 2.7 million outstanding from these working capital loans.

-- As of 31 August 2018, the first Halyk bank loan of USD 4 million had been repaid and the working capital lines reimbursed. The total bank debt net of cash amounted to USD11 million of which 64% is denominated in USD and the balance in KZT.

The following are the unaudited condensed consolidated statements of profit and loss, comprehensive income, financial position, changes in equity and cash flows. A copy of 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 94802500.

Broker: Contact Charlie Cryer at +44 20 3440 6800

SUMMARY OF INTERIM FINANCIAL STATEMENTS

FOR THE PERIODED 30 JUNE 2018 (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 2018 (UNAUDITED)

 
                                                   The Group                       The Company 
                                                6 months ended                   6 months ended 
                                        30 June 2018       30 June 2017       30 June       30 June 
                                                                                 2018          2017 
                                             USD'000            USD'000       USD'000       USD'000 
 
     Revenue                                  32,838             26,839            50            50 
 
     Cost of sales                          (22,114)           (20,050)             -             - 
                                   -----------------  -----------------  ------------  ------------ 
 
     Gross profit                             10,724              6,789            50            50 
 
     Selling expenses                        (6,450)            (4,145)             -             - 
 
     General and administrative 
     expenses                                (2,838)            (2,195)         (145)         (138) 
                                   -----------------  -----------------  ------------  ------------ 
 
     Operating profit/(loss)                   1,436                449          (95)          (88) 
     Interest income                              15                 16             ^             ^ 
     Finance costs                             (942)            (1,310)             -             - 
     Net foreign exchange 
      (loss)/gain                              (500)                572            21            47 
     Other income, net                           396                278             -             - 
                                   -----------------  -----------------  ------------  ------------ 
 
     Profit/(Loss) before 
      income tax                                 405                  5          (74)         (135) 
 
     Income tax expense                        (199)              (346)           (2)             - 
                                   -----------------  -----------------  ------------  ------------ 
 
     Profit/(Loss) for 
      the period                                 206              (341)          (76)         (135) 
                                   =================  =================  ============  ============ 
 
     Attributable to: 
     Shareholders of the 
      Company                                    206              (341)          (76)         (135) 
 
     Profit/(Loss) per 
      share: 
 
     Basic and diluted 
      (cents)                                    0.1              (0.2) 
                                   =================  ================= 
 

^ Insignificant amount.

CONDENSED CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME

FOR THE PERIODED 30 JUNE 2018 (UNAUDITED)

 
                                                      The Group                         The Company 
                                                   6 months ended                      6 months ended 
                                           30 June 2018       30 June 2017       30 June 2018       30 June 
                                                                                                       2017 
                                                USD'000            USD'000            USD'000       USD'000 
 
     Profit/(Loss) for 
      the period                                    206              (341)               (76)         (135) 
 
     Other comprehensive 
      (loss)/income: 
     Item that may be reclassified 
      subsequently to profit 
      or loss 
 
     Exchange differences 
      arising on translation 
      of foreign subsidiary 
      companies                                 (1,756)              2,453                  -             - 
 
     Total other comprehensive 
      income for the period                     (1,756)              2,453                  -             - 
                                      -----------------  -----------------  -----------------  ------------ 
 
     Total comprehensive 
      (loss)/income for 
      the period                                (1,550)              2,112               (76)         (135) 
                                      =================  =================  =================  ============ 
 
     Attributable to: 
     Shareholders of the 
      Company                                   (1,550)              2,112               (76)         (135) 
                                      =================  =================  =================  ============ 
 

CONDENSED CONSOLIDATED STATEMENT OF FINANCIAL POSITION

AS AT 30 JUNE 2018 (UNAUDITED)

 
                                                    The Group                         The Company 
                                           Unaudited           Audited          Unaudited           Audited 
                                        30 June 2018       31 Dec 2017       30 June 2018       31 Dec 2017 
                                             USD'000           USD'000            USD'000           USD'000 
     Assets 
     Non-Current Assets: 
     Property, plant 
      and equipment                           64,597            67,358                  -                 - 
     Investment in subsidiary 
      companies                                    -                 -             26,500            26,500 
     Advances and prepaid 
      expenses                                   226               509                  -                 - 
     Other assets                                537             1,248                  -                 - 
 
     Total Non-Current 
      Assets                                  65,360            69,115             26,500            26,500 
                                   -----------------  ----------------  -----------------  ---------------- 
 
     Current Assets 
     Inventories                              14,016            13,014                  -                 - 
     Trade and other 
      receivables                              5,469             3,102              3,435             3,435 
     Income tax receivable                       179               127                  -                 - 
     Loans and advances 
      to subsidiary companies                      -                 -             39,467            39,605 
     Advances and prepaid 
      expenses                                 3,707             3,477                 19                 9 
     Cash and cash equivalents                 3,654             3,045                 90                13 
 
     Total Current Assets                     27,025            22,765             43,011            43,060 
                                   -----------------  ----------------  -----------------  ---------------- 
 
     Total Assets                             92,385            91,880             69,511            69,560 
                                   =================  ================  =================  ================ 
 
 
                                                       The Group                     The Company 
                                           Unaudited           Audited       Unaudited           Audited 
                                        30 June 2018       31 Dec 2017         30 June       31 Dec 2017 
                                                                                  2018 
                                             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                       2,494             2,680               -                 - 
     Translation reserve                   (108,497)         (106,741)               -                 - 
     Retained earnings/ 
      (Accumulated loss)                      87,318            89,817         (8,242)           (5,275) 
                                   -----------------  ----------------  --------------  ---------------- 
 
     Total Equity                             55,076            59,517          65,519            68,486 
                                   -----------------  ----------------  --------------  ---------------- 
 
     Non-Current Liabilities 
     Borrowings                                9,013             9,835               -                 - 
     Deferred taxes                              794               638               -                 - 
     Deferred income                           1,866             1,519               -                 - 
     Provision for site 
      restoration                                 69                67               -                 - 
 
     Total Non-Current 
      Liabilities                             11,742            12,059               -                 - 
                                   -----------------  ----------------  --------------  ---------------- 
 
     Current liabilities 
     Trade and other 
      payables                                 9,583             7,684           2,891                 - 
     Accrued and other 
      liabilities                              6,147             2,229           1,094             1,069 
     Borrowings                                8,759            10,195               -                 - 
     Taxes payable                             1,078               196               7                 5 
 
     Total Current Liabilities                25,567            20,304           3,992             1,074 
                                   -----------------  ----------------  --------------  ---------------- 
 
     Total Liabilities                        37,309            32,363           3,992             1,074 
                                   -----------------  ----------------                  ---------------- 
 
     Total Equity and 
      Liabilities                             92,385            91,880          69,511            69,560 
                                   =================  ================  ==============  ================ 
 

CONDENSED CONSOLIDATED STATEMENT OF CHANGES IN EQUITY

FOR THE PERIODED 30 JUNE 2018 (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 
      2018                  73,761                   2,680         (106,741)              89,817        59,517 
                     -------------  ----------------------  ----------------  ------------------  ------------ 
     Profit for the 
      period                     -                       -                 -                 206           206 
     Other 
      comprehensive 
      loss                       -                       -           (1,756)                   -       (1,756) 
                     -------------  ----------------------  ----------------  ------------------  ------------ 
     Total 
      comprehensive 
      (loss)/income 
      for the 
      period                     -                       -           (1,756)                 206       (1,550) 
     Dividend 
      payable                    -                       -                 -             (2,891)       (2,891) 
     Transfer of 
      revaluation 
      reserve 
      relating to 
      the 
      depreciation 
      of property, 
      plant and 
      equipment 
      through 
      use                        -                   (186)                 -                 186             - 
                     -------------  ----------------------  ----------------  ------------------  ------------ 
 
     Balance as at 
      30 June 
      2018                  73,761                   2,494         (108,497)              87,318        55,076 
                     =============  ======================  ================  ==================  ============ 
 
 
                                         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 
      2017                  73,761                   3,062         (106,985)              88,203        58,041 
                     -------------  ----------------------  ----------------  ------------------  ------------ 
     Loss for the 
      period                     -                       -                 -               (341)         (341) 
     Other 
      comprehensive 
      income                     -                       -             2,453                   -         2,453 
                     -------------  ----------------------  ----------------  ------------------  ------------ 
     Total 
      comprehensive 
      income/(loss) 
      for the 
      period                     -                       -             2,453               (341)         2,112 
     Transfer of 
      revaluation 
      reserve 
      relating to 
      the 
      depreciation 
      of property, 
      plant and 
      equipment 
      through 
      use                        -                   (197)                 -                 197             - 
                     -------------  ----------------------  ----------------  ------------------  ------------ 
 
     Balance as at 
      30 June 
      2017                  73,761                   2,865         (104,532)              88,059        60,153 
                     =============  ======================  ================  ==================  ============ 
 
 
 
     The Company                                    Share capital       Accumulated         Total 
                                                                             losses 
                                                          USD'000           USD'000       USD'000 
 
     Balance as at 1 January 2018                          73,761           (5,275)        68,486 
     Total comprehensive loss for the period                    -              (76)          (76) 
     Dividend payable                                           -           (2,891)       (2,891) 
                                               ------------------  ----------------  ------------ 
     Balance as at 30 June 2018                            73,761           (8,242)        65,519 
                                               ==================  ================  ============ 
 
     Balance as at 1 January 2017                          73,761           (8,454)        65,307 
     Total comprehensive loss for the period                    -             (135)         (135) 
                                               ------------------  ----------------  ------------ 
     Balance as at 30 June 2017                            73,761           (8,589)        65,172 
                                               ==================  ================  ============ 
 

CONDENSED CONSOLIDATED CASH FLOW STATEMENT

FOR THE PERIOD ENDED 30 JUNE 2018 (UNAUDITED)

 
                                                  The Group                            The Company 
                                               6 months ended                        6 months ended 
                                       30 June 2018       30 June 2017       30 June 2018       30 June 2017 
                                            USD'000            USD'000            USD'000            USD'000 
 
     OPERATING ACTIVITIES 
     Profit/(Loss) before income 
      tax                                       405                  5               (73)              (135) 
     Adjustments for non-cash 
      items                                   4,870              4,898               (21)                 47 
                                  -----------------  -----------------  -----------------  ----------------- 
 
     Operating Profit/(Loss) 
      Before Working Capital 
      Changes                                 5,275              4,903               (94)               (88) 
 
     (Increase)/ Decrease in: 
     Inventories                            (1,309)            (1,741)                  -                  - 
     Trade and other 
      receivables,                          (2,169)            (2,878)               (12)               (11) 
     advances and prepaid 
     expenses 
     Loans and advances to 
      subsidiary companies                        -                  -                  -                 88 
     Increase/(Decrease) in: 
     Trade and other payables,                4,038              1,234                 45                 67 
     accrued and other 
     liabilities 
     Loans and advances to                        -                  -                138                  - 
      subsidiary companies 
                                  -----------------  -----------------  -----------------  ----------------- 
 
     Cash Generated From 
      Operations                              5,835              1,518                 77                 56 
     Income tax paid                              -               (51)                  -                  - 
     Interest paid                            (947)            (1,303)                  -                  - 
                                  -----------------  -----------------  -----------------  ----------------- 
 
     Net Cash Generated From 
      Operating Activities                    4,888                164                 77                 56 
                                  -----------------  -----------------  -----------------  ----------------- 
 
 
     INVESTING ACTIVITIES 
     Purchase of property, 
      plant and equipment                   (2,437)              (740)                  -                  - 
     Purchase of other assets                  (28)               (32)                  -                  - 
     Interest received                           15                 16                  -                  - 
                                  -----------------  -----------------  -----------------  ----------------- 
 
     Net Cash Used In Investing 
      Activities                            (2,450)              (756)                  -                  - 
                                  -----------------  -----------------  -----------------  ----------------- 
 
 
     FINANCING ACTIVITIES 
     Proceeds from borrowings                 7,253             13,611                  -                  - 
     Repayment from borrowings              (9,013)           (12,319)                  -                  - 
                                  -----------------  -----------------  -----------------  ----------------- 
 
     Net Cash (Used 
      In)/Generated 
      From Financing Activities             (1,760)              1,292                  -                  - 
                                  -----------------  -----------------  -----------------  ----------------- 
 
     NET INCREASE IN CASH AND 
      CASH EQUIVALENTS                          678                700                 77                 56 
     EFFECTS OF FOREIGN EXCHANGE 
      RATE CHANGES                             (69)                 30                  -                  - 
     CASH AND CASH EQUIVALENTS 
      AT BEGINNING OF THE PERIOD              3,045              1,023                 13                 74 
                                  -----------------  -----------------  -----------------  ----------------- 
 
     CASH AND CASH EQUIVALENTS 
      AT END OF THE PERIOD                    3,654              1,753                 90                130 
                                  =================  =================  =================  ================= 
 
 

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.

END

IR FKFDBNBKKDCD

(END) Dow Jones Newswires

September 18, 2018 02:00 ET (06:00 GMT)

1 Year Steppe Cement Chart

1 Year Steppe Cement Chart

1 Month Steppe Cement Chart

1 Month Steppe Cement Chart
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:20190119 05:51:48