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Afarak issues profit warning for first quarter of 2019

Lower ferrochrome prices due to weaker stainless steel demand from China meant the firm expected its first quarter to be “below market expectations”
Chrome pipes
The group's products include chrome ore and stainless steel alloys

Afarak Group PLC (LON:AFRK) has issued a profit warning for the first quarter of 2019 after some of the challenges from 2018 persisted into its new financial year.

The chrome alloys specialist said in a trading update in late-afternoon on Tuesday that the ferrochrome price had fallen in the quarter due to weaker demand for stainless steel from China, and as a result the company expected its performance for the period would be “below market expectations” with an expected EBITDA loss of around €5mln.

READ: Afarak Group takes full control of its mining operations

However, the company said its cash balance remained “satisfactory” and despite “some setbacks in challenging markets” it was continuing to optimise the business.

The group will publish its first quarter results on 17 May.

In early trading on Wednesday, the company’s shares were steady at 62.5p.

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Afarak Group PLC Timeline

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