Sims Lifecycle Services Announced Notable Boost in Profits

SEATTLE (Scrap Monster): Sims Lifecycle Services (SLS)- the electronics recycling arm of Sims Limited announced boost in profits during the latter half of 2020.

The company press release noted that the underlying earnings before interest and taxes (EBIT) during the second half of calendar year 2020 totalled around $5.3 million. This is substantially down when compared with H2 20109, mainly because the Q3 2019 results included the European e-scrap recycling businesses that the company sold afterwards. Upon comparing the assets which it owned then and now, the EBIT has recorded 750% jump from around $620,000 in H2 2019 to $5.3 million in H2 last year.

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During the latter half of 2020, SLS processed 28,537 metric tons of electronics, down 31% year over year on a remaining-business basis. The company’s goal to boost recycling of materials associated with cloud computing took a hit due to coronavirus pandemic lockdowns and restrictions afterwards. The weight of cloud equipment processed by the company dropped significantly by 30% over the year.

The company press release noted that the efforts to increase cloud material volumes were badly impacted by logistics disruptions and customer personnel availability. The electronics processing arm of the company accounted for nearly 6% of Sims Limited’s revenue and 12% of its underlying EBIT.