News6 Aug 2012 08:15
6 August 2012
Metal-Tech Ltd.
("Metal-Tech" or "the Company")
Results for the six months ended 30 June 2012
Metal-Tech, the producer and recycler of speciality metals such as Tungsten and Molybdenum, announces results for the half year ended 30 June 2012.
H1 2012 Financial Summary:
· Revenue decreased by 32% to US$20.4m (H1 2011: US$29.9m)
· Net loss of US$1.1m (H1 2011: US$2.6m profit, including US$3.6m of profit from discontinued operations)
· Gross margin was 11% (H1 2011: 13%)
· Positive cash flow from operating activities of US$0.6m (H1 2011: positive US$1.5m)
· Operating expenses reduced to US$3.1m (H1 2011: US$3.8m)
· Loss per share from continuing operation of US$0.03 (H1 2011: US$0.03)
· Cash, cash deposits and restricted cash balance at 30 June 2012 were US$3.4m (30 June 2011: US$6.4m; 31 December 2011: US$2.9m)
· Significantly reduced debt position: bank debt balance at 30 June 2012 was US$16.4m (30 June 2011: US$20.7m; 31 December 2011: US$15.7m)
· Funding support received from The Israeli Investment Center
H1 2012 Operational Summary:
· Sales volumes decreased by approximately 49% compared to H1 2011 and 12% compared to H2 2011, mainly due to working capital restraints as well as lower demand for Tungsten
· Cash flow is still tight and remains the barrier for further expansion.
· Recycling increased by 34% compared to H1 2011 and by 21% compared to H2 2011
· The Company's arbitration case against the Republic of Uzbekistan continues with final briefs by the respondent and claimant expected in H2 2012
· The Company's operational focus will remain the continued expansion of the production lines with a specific emphasis on the recycling plant, within the constraints of working capital
Commenting on the results, Aik Rosenberg, Executive Chairman and CEO of the Company, said: "The Company is progressing well with its strategy to increase recycling and maintaining this with improved commercial conduct thus minimising the effect of changing prices.
"Looking ahead, the uncertain macro-economic climate and with reduced demand for tungsten globally, the Company continues to exert tight cost control in all its operations. However, the cashflow constraints continue to restrict the Company's ability to increase production and recycling, management will seek to ease this pressure in order to return Metal-Tech to sustained growth and profitability."
Enquiries:
Metal-Tech Ltd.
+972 544 215454
Ariel (Aik) Rosenberg
Panmure Gordon
+44 20 7459 3600
Fred Walsh
Hannah Woodley, Charles Leigh-Pemberton
Luther Pendragon
+44 20 7618 9100
Harry Chathli, Alexis Gore
Operating Review
The first half of 2012 saw Metal-Tech's revenues and sales volumes hit by the global macro-economic conditions and a slowdown in demand for Tung