Scholz Holding GmbH
Scholz Holding GmbH: Scholz Group publishes Financial Results for FY 2015 and aims to stabilize its operative earnings situation together with Chiho-Tiande Group
DGAP-News: Scholz Holding GmbH / Key word(s): Bond Press Release Scholz Holding GmbH London, 18 August 2016 Scholz Group publishes Financial Results for FY 2015 and aims to stabilize its operative earnings situation together with Chiho-Tiande Group – Annual Accounts 2015 again affected by adverse market conditions in the international steel and scrap markets, and by exceptional charges – Takeover of the Scholz Group by Chiho-Tiande Group (CTG) well on track – Scholz Group aims to reduce debt burden by around 50 % on completion of financial restructuring In a continuously difficult market environment for the international steel and scrap sector, the Scholz Group is aiming to stabilize its operative earnings situation together with Chiho-Tiande Group (CTG) which has become the largest single creditor of Scholz Group in July 2016. Scholz Group expects the current financial year to remain challenging. For 2016 the Group expects a further decrease in group turnover affected by the persistently low price level on the scrap market. The sale of non-strategic holdings also contributes to this development but focuses on successfully stabilizing the Group in its core business. The normalised operating result (EBITDA), adjusted by exceptional and non-recurring effects, should, however, stabilize at a level above 70 million Euros which marks the Group’s ability to generate stable results in an extremely adverse market environment. The financial year of 2015 at Scholz was again mainly influenced by the ongoing operative and financial restructuring measures. These took place against a backcloth of raw material markets typified by excess capacities and massive price decline. Prices for scrap iron fell from June to November 2015 by almost 50%. As a result of these market conditions and divestments carried out, tonnage handled decreased by 13 % from 8.33 million tons in 2014 to 7.24 million tons in 2015. Due to the price decline across the entire sector, the turnover of the Group contracted by 27% from 3.12 billion Euros in 2014 to 2.29 billion Euros in 2015. Notwithstanding the highly adverse market conditions, through strict cost management and a series of planned restructuring initiatives, the Group was able to deliver a normalised EBITDA of 70.5 million Euros in 2015 (2014: 91.3 million Euros), amongst others due to a gross profit margin which increased by almost 2 percentage points from 22% in 2014 to 24% in 2015. The after tax earnings situation was affected negatively by the considerable one-off increase in depreciation of 78 % to 172.0 million Euros. This was caused by high value adjustments on customer receivables, as well as non-cash items such as unscheduled depreciation of goodwill. The Group ended the year 2015 with an after tax loss of 232.0 million Euros (2014: -123.0 million Euros). The planned takeover of the Scholz Group by the Chiho-Tiande Group (CTG), the leading mixed metal scrap recycler and importer in China and the largest buyer of electro scrap motors from Europe, is continuing as planned. CTG has acquired the vast majority of secured financial liabilities in the amount of 524 million Euros and is therefore now Scholz Group’s largest individual creditor. CTG has also provided a bridge loan facility of 80 million Euros to secure ongoing business. In addition, CTG provides a total of up to EUR 16 million to bondholders for the settlement of outstanding bond obligations by the Scholz Group. As part of an overall restructuring, CTG has addressed its intention to gain control of Scholz Holding GmbH. This, combined with a significant deleveraging by CTG, would result in considerable debt relief and a significant improvement of the capital structure of Scholz Group including a material strengthening of the Group’s equity position. According to current plans, the financial debts of the Group should be reduced from currently 960 million Euros (as of 31 December 2015) by approx. 50 % to a level well below 500 million Euros by means of the financial restructuring agreed with creditors including CTG. This will lead to a significant reduction of interest burden. Scholz would then have an appropriate and manageable debt level as well as a positive equity base. The new investment provided by CTG is the basis for the Group to complete the turnaround and strengthen the business going forward. Contact details:
2016-08-18 Dissemination of a Corporate News, transmitted by DGAP – a service of EQS Group AG. |
Language: | English | |
Company: | Scholz Holding GmbH | |
Office Number: 610, 68 King William Street | ||
EC4N 7DZ London | ||
United Kingdom | ||
Phone: | 0044 20 7959 2291 | |
E-mail: | infoscholz@scholz-group.com | |
Internet: | www.scholz-group.com | |
ISIN: | AT0000A0U9J2 | |
WKN: | A1MLSS | |
Listed: | Regulated Unofficial Market in Dusseldorf, Munich, Stuttgart; Open Market in Frankfurt ; Wien (Geregelter Freiverkehr / Second Regulated Market) | |
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