SGM +13.68%: the best on ground for the ASX200 today was scrap metal business Sims following a strong 1H result. Revenue jumped 74% to $4.27b and earnings (EBIT) came in ahead of guidance at $362m, up over 5x for the first half of 2021. Margins grew despite the company noting inflationary but there were more than offset by a 64% jump in prices for ferrous products and 46% for non-ferrous. Volumes were also strong, taking in 12.8% on the same time last year and selling 7.6% more. As a result of the strong numbers Sims lifted the interim dividend more than 3x and have set aside $54m for a share buy-back. While no specific guidance was given for the full year the company did say momentum has continued into the 2H, intake volumes were solid and commodity prices are tracking higher than the 1st half averages which is a supportive backdrop
MM is neutral SGM
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