Insights

Why the Sims (ASX:SGM) share price is leaping 8% today

The Sims (ASX:SGM) share price is leaping today, up 8% in afternoon trading. We look at the financial results driving the share price gains.
The post Why the Sims (ASX:SGM) share price is leaping 8% today appeared first on The Motley Fool Australia. –

jump in asx share price represented by man jumping in the air in celebration

Sims Ltd (ASX: SGM) shares are surging higher today following the company’s release of its half-year results for the 2021 financial year (H1 FY21). At the time of writing, the Sims share price is trading 8.31% higher at $13.81.

Let’s take a look at how the metal and electronics recycler has been performing? 

What’s pushing the Sims share price higher?

The Sims share price is on the rise today after the company reported statutory earnings before income and taxes (EBIT) of $78.5 million. That’s an increase of $173.7 million from H1 FY20 when statutory EBIT came in at a negative $95.2 million.

Underlying EBIT for the half year was $56.4 million, up $79.6 million from the first half of the 2020 financial year.

Sales revenue of $2.45 billion fell by 9.5% from the prior corresponding period. The company had a net cash position of $164.5 million as at 31 December.

Sims will pay an interim dividend of 12.0 cents per share (cps), fully franked. The dividend will be paid on 23 March 2021 with a record date of 8 March. (Meaning investors who want in on the dividend need to own Sims shares by 8 March.)

Commenting on the results, Sim’s CEO Alistair Field said:

We delivered significantly better results in first half FY21 due to improved margins, higher prices and lower operating costs. Pleasingly, the cost reduction program is on track to achieve annualised cost savings in excess of $70 million in FY21 compared to FY19.

Looking at growth potential in the years ahead, Field added:

I’m pleased with the substantial progress made in advancing our growth strategy during first half FY21. This provides a strong foundation to make further headway in FY21 and in future years.

Foolish takeaway

The Sims share price has been heading higher (though not in a straight line, of course) since the late March, coronavirus-induced selloff. Over the past six months, Sims shares have surged more than 65%. That compares to a 13% gain for the S&P/ASX 200 Index (ASX: XJO) over the same period.

Year to date, the Sims share price has gained 1.3%.

Where to invest $1,000 right now

When investing expert Scott Phillips has a stock tip, it can pay to listen. After all, the flagship Motley Fool Share Advisor newsletter he has run for more than eight years has provided thousands of paying members with stock picks that have doubled, tripled or even more.*

Scott just revealed what he believes are the five best ASX stocks for investors to buy right now. These stocks are trading at dirt-cheap prices and Scott thinks they are great buys right now.

See The 5 Stocks

*Returns as of February 15th 2021

More reading

Motley Fool contributor Bernd Struben has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Bruce Jackson.

The post Why the Sims (ASX:SGM) share price is leaping 8% today appeared first on The Motley Fool Australia.

Trade The World Anywhere & Anytime!

Mobile app platform with over 50,000 global listed securities across 12 markets (over 70% global market capitalisation), right from your Android or iOS device.

Integrated with exclusive trading idea and investment analysis tools to help you find actionable insight on virtually every financial instrument across our 12 global markets, to help you optimise your trading strategies.

Refer Your Friends

Tell your friends about Monex and gift them FREE access to our trading tools.

We respect your privacy and will only send this one email notification to your friends. 

Share With Your Friends

Share on facebook
Share on twitter
Share on linkedin

Monex Trading Tools Access and Usage Terms

The Monex Trading Tools (referred to as ‘tools’ hereafter) are available to you inside your client portal;


To activate access to the tools, you must have a verified and approved trading account and have made a deposit of at least AUD $1000.


An active and funded account with a positive trading balance is required to continue to have access to the tools;


Although the tools are available to you indefinitely, Monex Securities may at it’s discretion disable access to the tools in the future;


Monex securities reserves the right to change these terms and conditions from time to time, as it sees fit, without notice.

Important Notice
iOS & Android App - 12 International Markets & Over 70% Global Market Cap. $0 Brokerage On US Trades. Click Here!