Last checked at 14 May 2019 16:13
AFARAK GROUP: PROFIT WARNING FOR Q1 2019
16:00 London, 18:00 Helsinki, 14 May 2019 - Afarak Group Plc ("Afarak" or "the Company") (LSE: AFRK, NASDAQ: AFAGR)
AFARAK GROUP: PROFIT WARNING FOR Q1 2019
The Company previously announced that 2018 was a particularly difficult year. The unforeseen challenges in the South African operations were exacerbated by the lower average ferrochrome benchmark prices.
The Afarak leadership team has designed and implemented corrective measures across the business. However, some of the challenges have persisted in Q1 2019. The Ferrochrome benchmark for Q1 2019 fell to USD 112 c/ lb due to weaker demand for stainless steel in China. As a result, Afarak anticipates that the Group financial performance in Q1 will be below market expectations; it is expected that EBITDA will be in the region of EUR -5 million. In view of management’s prudent approach towards working capital, the Group’s cash balances and gearing remain satisfactory. Despite some setbacks in challenging markets, the Group is resilient and continues to optimize the business.
Afarak will be publishing its first quarter results on May 17, 2019.
AFARAK GROUP PLCGuy KonsbruckCEO
For additional information, please contact:
Afarak Group Plc
Guy Konsbruck, CEO, +356 2122 1566, guy.konsbruck@afarak.comJean Paul Fabri, +356 2122 1566, jp.fabri@afarak.com
Financial reports and other investor information are available on the Company'swebsite: www.afarak.com.
Afarak Group is a specialist alloy producer focused on delivering sustainableGrowth with a Speciality Alloys business in southern Europe and a FerroAlloysbusiness in South Africa. The Company is listed on NASDAQ Helsinki (AFAGR) andthe Main Market of the London Stock Exchange (AFRK).
Distribution:NASDAQ HelsinkiLondon Stock ExchangeMain media
www.afarak.com