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Sims shares tumble on fraud announcement

Shares in global metals recycler Sims have fallen after the firm said the value of stock at two UK sites had been overvalued by around $60m (£39.7m).

The Australian-US firm said possible fraud at its Long Marston and Newport electronics recycling facilities had led an overstatement of stock value.

An investigating committee has been formed by the firm headed by chairman Geoff Brunsdon alongside auditor PricewaterhouseCoopers.

Sims’ shares closed down 50c or 5% at A$9.48 on Monday having fallen as much as 7.1% earlier in the day.

In December the firm cut by 20% its forecast underlying EBITDA (earnings before interest, taxes, depreciation, and amortization) for the first half of fiscal 2012/13 following an assessment of intake volumes.

It predicted continuing weak intake volumes across all regions.

In August 2012 the firm reported a full year loss of AU$521m (£348m).

Sims has 42 sites in the UK, operates in more than 260 locations globally and employs more than 6,300 people.

The company’s first half 2013 results are due to be published on 15 February.

Readers' comments (1)

  • £348M loss - it is no surprise other UK recycling businesses struggle to compete with Sims purely on price.

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