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?
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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%.
