Soaring Ferrous Scrap Prices Drive Scrap metal Firm's Profits in 2017

SEATTLE (Scrap Monster): The annual report published by the leading U.K scrap metal firm S. Norton indicates substantial increase in annual turnover and pre-tax profits, mainly driven by elevated ferrous scrap prices. The pre-tax profits recorded 7% growth in 2017 to total more than £25 million. The company’s turnover surged higher significantly by nearly one-third from £205 million to £272 million during the previous year.

According to John Norton, Chairman, S. Norton, the notable jump in sales prices of main ferrous grades contributed to the excellent operating results. On an average, the sales prices surged higher by more than 20% during the course of the year, as compared with the closing levels of 2016. This phenomenal jump in prices helped to drive turnover by one-third and operating profit by nearly 44%.

Commenting on the future strategies and growth plans, the company noted that it has already identified several key investment projects across the four U.K sites in the short to medium term. Further, it will continue investing in good quality equipment to maintain its industry leadership position, as part of its long-term strategy.

S. Norton warned of the detrimental effects due to current tensions between the U.S. and China. Also, uncertainty with regards to Brexit terms may impact the U.K economy, which in turn may have a potential impact on scrap arisings in the near future. However, long-range forecasts demonstrate significant jump in demand for scrap, it added.