AFARAK GROUP PLC: FINANCIAL STATEMENTS RELEASE ...

AFARAK GROUP PLC: FINANCIAL STATEMENTS RELEASE 2021

08:30 London, 10:30 Helsinki, 25 February 2022 - Afarak Group Plc ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)

AFARAK GROUP PLC: FINANCIAL STATEMENTS RELEASE 2021

		H2/21	H2/20	FY2021	FY2020
Revenue	EUR million	42.9	24.3	80.3	59.8
EBITDA	EUR million	6.8	-3.7	5.9	-4.1
EBIT	EUR million	5.9	-26.5	6.8	-28.2
Earnings before taxes	EUR million	3.4	-28.4	2.9	-32.4
Profit from continuing operations	EUR million	1.5	-23.0	0.6	-27.6
Profit from discontinued operations	EUR million	8.4	17.6	8.4	6.1
Profit for the period	EUR million	9.9	-5.4	9.0	-21.6
Earnings per share	EUR	0.04	0.02	0.04	-0.05
EBITDA margin	%	15.9	-15.2	7.4	-6.8
EBIT margin	%	13.8	-109.0	8.5	-47.1
Earnings margin	%	7.8	-116.8	3.6	-54.3
Personnel (end of period)		503	621	503	621

SECOND HALF 202 1 HIGHLIGHTS

Revenue for the second half of 2021 increased by 76.5% to EUR 42.9 (H2/2020: 24.3) million driven by stronger market demand and higher prices;
Speciality Alloys processed material sold increased by 73.4%, to 11,198 (H2/2020: 6,459) tonnes;
Tonnage mined decreased by 39.8%, to 49,428 (H2/2020: 82,120) tonnes due to the temporarily discontinued mining activity at the South African mines;
Group’s EBITDA increased to EUR 6.8 (H2/2020: -3.7) million and the EBITDA margin stood at 15.9% (H2/2020: -15.2%);
EBIT was EUR 5.9 (H2/2020: -26.5) million and the EBIT margin stood at 13.8% (H2/2020: -109.0%);
Profit for the period from continuing operation totalled EUR 1.5 (H2/2020: -23.0) million;
Cash flow from operations during H2 2021 was EUR 15.0 (H2/2020: -2.2) million. Net interest-bearing debt decreased to EUR 32.2 (31 December 2020: 48.2) (30 June 2021: 50.3) million;
Cash and cash equivalents at 31 December totalled EUR 6.3 (31 December 2020: 1.1) (30 June 2021: 2.9) million.

FULL YEAR 202 1 HIGHLIGHTS

Revenue for the year 2021 increased by 34.2% reflecting both higher production and sales volumes as well as improved prices;
Speciality Alloys Processed material sold increased by 37.9%, to 23,442 (FY/2020: 16,999) tonnes;
Tonnage mined decreased by 44.3%, to 102,970 (FY/2020: 184,779) tonnes due to the minimal activity at the South African mines during the year;
EBITDA during the year improved to EUR 5.9 (FY/2020: -4.1) million. EBIT stood at EUR 6.8 (FY/2020: -28.2) million;
The result of the discontinued operation was EUR 8.4 (FY/2020: 6.1) million;
Profit from continuing operation for the full year 2021 totalled EUR 9.0 (FY/2020: -21.6) million.

MARKET SENTIMENT FOR 2022

The strong demand for Stainless Steel and hence for ferro-chrome, is expected to carry on in 2022.
The automotive and the aerospace industry posted strong results in the last 2 quarters of 2021 and this trend is expected to continue

The European ferro-chrome benchmark picked up to $1.80/lb for Q4 2021 was rolled over to the first quarter of 2022. The first 2 months of 2022 show improved demand and prices for LC Ferro-Chrome already. Having said that, we are also negatively impacted by increasing energy and consumables cost, as well as mounting logistics cost. Nevertheless, we resumed to profitable operations and reduced our total debt.

The Corona pandemic continues to be threat and may cause disruptions during 2022.

CEO GUY KONSBRUCK

“During H2/21, and particularly during Q4, the business conditions for the chrome industry have been good.

Our Specialty Alloys segment performed well. We saw substantial increase in production and sales volumes, as well as increased sales prices.
The order book for 2022 is very encouraging and the sales prices for Q1 have so far further increased. We are also hit hard by very strong price increases for energy and consumables in our German plant.

In our last release we said that “the main priorities for Afarak in 2021 are stability and consistency of operational and financial performance, especially to increase the volumes and profitability of the specialty segment.” We are committed to continue this route in 2022. We will also put a main focus on sustainability, where we pursue several projects of waste reduction, and further reduction of our CO2 foot print.”

Helsinki, February 25, 2022

Afarak Group Plc

Board of Directors

For additional information, please contact:

Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.com

Financial reports and other investor information are available on the Company's website: www.afarak.com.

Afarak Group is a specialist alloy producer focused on delivering sustainable growth with a Speciality Alloys business in southern Europe and a FerroAlloys business in South Africa. The Company is listed on NASDAQ Helsinki (AFAGR) and the Main Market of the London Stock Exchange (AFRK).

Distribution:
NASDAQ Helsinki
London Stock Exchange
Main media
www.afarak.com

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