15 sep 25   steppe cement ltd - half-year report steppe cement ltd | stcm | 17.5 0 0.0% | mkt cap: 38.3m    rns number : 3033z steppe cement limited 15 september 2025         15 september 2025     steppe cement ltd ("steppe cement" or the "company")   unaudited interim results for the half year ended 30 june 2025 and general market update   steppe cement ltd (aim: stcm), is pleased to announce its unaudited interim results for the half year ended 30 june 2025, and a general market update.   a copy of this announcement and the full interim financial statements are available on the company's website at www.steppecement.com      unaudited interim results  during the six-month period to 30 june 2025 ("h1 2025" or the "period"), the group reported revenue of usd40.9 million, a 19% increase from usd34.4 million in the corresponding period in 2024. this increase was attributable to the 18% increase in sales volume. volume of sales has been stable in the third quarter of 2025, and the price of cement has slightly increased as is typical during the high season.     6 months ended 30 june 2025 6 months ended 30 june 2024 % change sales (tonnes)  850,424 719,294 +18% consolidated turnover (kzt million)  20,717 15,435 +34% consolidated turnover (usd million)  40.9 34.4 +19% consolidated (loss)/profit after tax (usd million)  -0.5 -3.5 n/a (loss)/earnings per share (cents)  -0.2 -1.6 n/a average exchange rate (usd/kzt)  507 449 +13%   the average sales price of cement delivered for the company was usd48 per tonne (kzt24,361 per tonne) the same in usd as in 2024.     the gross margin increased by 21% in the six-month period to 30 june 2025 compared with 15% in the same period last year due mostly to the higher production and selling price in kazakhstani tenge ("kzt").  the cost of electricity continues to increase well above inflation however selling expenses have fallen by 13% as the company concentrates on markets closer to the factory, while administration expenses have increased by 6%.    general inflation in kazakhstan has increased to 11.8% in h1 2025 vs 8.4% the previous year. the increase is due to higher prices of utilities (water, electricity and heating), food and imported goods following a 13% depreciation of the kzt. in response, the national bank of kazakhstan increased the refinancing rate in kzt to 16.5% in march 2025 to try to reduce inflation.    the group reported a net loss for the period of usd0.5 million compared with a loss of usd3.5 million after tax in the same period in 2024.    production and capex  • cash production costs remained flat in kzt terms in the h1 2025 compared to the same period in 2024, as higher production levels offset increased electricity, diesel and consumable costs. in h2 2025, further increases in electricity tariffs and continued general inflation is expected. the government has announced an inflation target of 11% to 12% for the full year. • clinker production volume increased by 4% in h1 2025 and continued to increase in the third quarter of 2025 with a full year growth target growth of 8%. • capex has been focused on compliance with ecological requirements, particularly the installation of filters. • a new dynamic separator for raw mill number 3 has been commissioned. • the company is exploring the opportunities to further increase clinker production in line 6 as well as other options to optimise our assets.   kazakh cement market update  • during h1 2025, the kazakh cement market increased in size by 19% compared to the same period in 2025 due to weather conditions, general economic growth, infrastructure projects, population growth and subsidised lending for private mortgages. the growth has been mostly concentrated in south kazakhstan. we expect slower growth in the second half of 2025. • the company expects to maintain its market share at approximately 14% for the full financial year ended 31 december 2025 and volumes of 1.8 to 1.85 million tonnes.  • exports of cement from kazakhstan in the first half of 2025 declined to 0.4 million tonnes compared to 0.45 million in the same period of 2024. • imports of cement in the period represented 7.7% of the local market, 1.5 times higher than in 2024. a significant built up of capacity in uzbekistan has led to lower prices, resulting in reduced exports to uzbekistan and increased imports into south kazakhstan.    financial update • total finance costs for the period were usd0.6 million, including interest expenses on bank debt of usd0.5 million, mostly from subsidised loans. • the company recorded usd0.1 million in advanced income tax payments, which are expected to be offset against future tax liabilities.  • as at 30 june 2025, the company's borrowings totalled usd4.8 million, with a cash balance of usd7.3 million. inventories of clinker and cement were also valued at usd7.3 million as at 30 june 2025.   for further information, please contact:     steppe cement ltd www.steppecement.com javier del ser pérez, chief executive officer tel: +(603) 2166 0361   strand hanson ltd (nominated & financial adviser and broker) www.strandhanson.co.uk james spinney / ritchie balmer / imogen ellis     tel: +44 20 7409 3494           condensed consolidated statement of profit and loss for the period ended 30 june 2025 (unaudited)        the group   the company     6 months ended   6 months ended     30 june 2025   30 june 2024   30 june 2025   30 june 2024   note usd'000   usd'000   usd'000   usd'000           revenue  7 40,948  34,376  871  738           cost of sales   (32,355)  (29,158)  -  -           gross profit   8,593  5,218  871  738 other income   554  760  9  88 selling expenses   (5,364)  (6,138)  -  - administrative expenses   (3,625)  (3,417)  (228)  (199) other expenses   (148)  (251)  -  (4)           profit/(loss) from operations   finance cost                                                                                                         8   10   (611)    (3,828)   (614)     652   -    623   - (loss)/profit before tax   (601)  (4,442)  652  623           tax credit  9 125  938  -  -           (loss)/profit for the period   (476)  (3,504)  652  623           attributable to shareholders          of the company   (476)  (3,504)  652  623                     basic and diluted earnings           per ordiary share (cents)  10 (0.2)  (1.6)           the accompanying notes form an integral part of the condensed financial statements.  condensed consolidated statement of profit and loss and other comprehensive income for the period ended 30 june 2025 (unaudited)        the group   the company    6 months ended   6 months ended    30 june 2025   30 june 2024   30 june 2025    30 june 2024    usd'000   usd'000   usd'000   usd'000              (loss)/profit for the period  (476)  (3,504)  652  623               other comprehensive income/ (loss):              item that may not be reclassified subsequently to profit or loss              exchange differences arising on translation of foreign operations          158          (3,140)          -          -               total comprehensive (loss)/income for the period    (318)    (6,644)    652    623               attributable to shareholders            of the company    (318)    (6,644)    652    623          the accompanying notes form an integral part of the condensed financial statements.     condensed consolidated statement of financial position as at 30 june 2025 (unaudited)             the group   the company         unaudited   audited   unaudited   audited         30 june 2025   31 dec 2024   30 june 2025   31 dec 2024       note usd'000   usd'000   usd'000   usd'000 assets           non-current assets           property, plant and equipment     11   44,319    46,364    -    - right-of-use assets    922  19  -  - investment in subsidiary companies      -    -    36,200    36,200 loan to subsidiary company      -    -    26,990    27,000 other assets   12 220  308  -  -            total non-current assets      45,461    46,691    63,190    63,200            current assets           inventories   13 19,258  20,314  -  - trade  receivables other receivables   14 498 5,440  601 3,407  - 18  - 8 tax recoverable    2,706  2,098  -  - loans and advances to subsidiary companies      -    -    923    211 cash and cash equivalents     15   7,267       6,064   67   117             total current assets    35,169  32,484  1,008  336            total assets    80,630  79,175  64,198  63,536     (cont'd)  condensed consolidated statement of financial position as at 30 june 2025 (unaudited)    the group   the company     unaudited   audited   unaudited   audited     30 june 2025   31 dec 2024   30 june 2025   31 dec 2024    note usd'000   usd'000   usd'000   usd'000   equity and liabilities                       capital and reserves            share capital   65,400  65,400  65,400  65,400  asset revaluation reserve   3,669  3,669  -  -  translation reserve   (133,724)  (133,883)  -  -  retained earnings / (accumulated losses)     121,388    121,865    (1,413)    (2,065)    total equity     56,733    57,051    63,987    63,335             non-current liabilities           borrowings  16 2,842  2,072  -  -  deferred taxes   2,623  2,557  -  -  deferred income lease payable   1,840 -  1,840 17  - -  - -  provision for site restoration     35    32    -    -             total non-current liabilities     7,340    6,518    -    -             current liabilities             trade and payables other payables                                  8,601 5,893    6,670 5,626    - 211    - 201  borrowings  16 1,950  3,121  -  -  lease liabilities   -  4  -  -  deferred income   113  185  -  -               total current liabilities     16,557    15,606    211    201             total liabilities   23,897  22,124  211  201             total equity and liabilities     80,630    79,175    64,198    63,536      the accompanying notes form an integral part of the condensed financial statements.  condensed consolidated statement of changes in equity for the period ended 30 june 2025 (unaudited)           non-distributable     distributable                       the group share capital   revaluation reserve   translation reserve     retained earnings   total   usd'000   usd'000   usd'000     usd'000   usd'000            as at 1 january 2025 65,400  3,669,  (133,882)   121,864  57,051 loss for the period other comprehensive income - -  - -  - 158   (476) -  (476) 158   total comprehensive income/(loss) for the period transfer of revaluation reserve relating to property, plant and equipment through use   -     -    -     -    158     -     (476)     -    (318)     -               as at 30 june 2025 65,400  3,669  (133,724)   121,388  56,733     (cont'd)  condensed consolidated statement of changes in equity for the period ended 30 june 2025 (unaudited)             non-distributable     distributable     the group share capital   revaluation reserve   translation reserve     retained earnings   total   usd'000   usd'000   usd'000     usd'000   usd'000            as at 1 january 2024 73,761  1,516  (125,178)   120,596  70,695   loss for the period -  -  -   (3,504)  (3,504)   other comprehensive (loss) -  -  (3,140)   -  (3,140)   total comprehensive (loss) for the period capital reduction   - (4,161)    - -    (3,140) -     (3,504) -    (6,644) (4,161)   transfer of revaluation reserve relating to property, plant and equipment through use     -      (110)      -       110      -               as at 30 june 2024 69,600  1,406  (128,318)   117,202  59,890      condensed consolidated statement of changes in equity for the period ended 30 june 2025 (unaudited)                  the company share capital   accumulated losses     total  usd'000   usd'000   usd'000       as at 1 january 2025 65,400   (2,065)  63,335   total comprehensive income for the period -   652  652   as at 30 june 2025 65,400   (1,413)  63,987   as at 1 january 2024 73,761   (3,148)  70,613 total comprehensive income for the period capital reduction - (4,161)   623 -  623 (4,161)        as at 30 june 2024 69,600   (2,525)  67,075           condensed consolidated cash flow statement for the period ended 30 june 2025 (unaudited)     the group   the company      6 months ended   6 months ended      30 june 2025   30 june 2024   30 june 2025   30 june 2024      usd'000   usd'000   usd'000   usd'000                 operating activities             (loss)/profit before income tax   (601)  (4,442)  653  623    adjustments for:            depreciation of property,  plant and equipment     2,833    2,898    -    -  depreciation of right-of-use  assets      3     3     -     -   other non-cash items                 896  (2,413)  (604)  (1,094)             operating profit/(loss) before working capital changes   3,131  (3,954)  49  (471)               (increase)/decrease in:             inventories   1,056  5,096  -  -    trade and other receivables, advances and prepaid expenses     (3,353)    (1,725)    (11)    (9)    loans and advances to subsidiary companies     -    -    (98)    (67)                increase/(decrease) in:             trade and other payables, accrued and other liabilities     2,171    1,879    10    (4,152)                cash generated from/(used in) operations             3,005        1,296  (50)  (4,699)    income tax paid   (661)  (926)  -  -    interest paid   (173)  (224)  -  -                net cash generated from/(used in) operating activities     2,171    146    (50)    (4,699)                (cont'd)                    the group   the company     6 months ended   6 months ended     30 june 2025   30 june 2024   30 june 2025   30 june 2024     usd'000   usd'000   usd'000   usd'000  investing activities           purchase of property, plant and equipment     (668)    (2,171)    -    -  purchase of other assets   (28)  7  -  -  interest received   271  119  -  200             net cash (used in)/generated from investing activities     (425)    (2,045)    -    200                        financing activities           proceeds from borrowings   1,306  9,629  -  -  repayment of borrowings   (2,034)  (10,752)  -  -             net cash used in financing activities     (728)    (1,123)    -    -             net decrease in cash and cash equivalents       1,018      (3,022)      (50)      (4,499)  effects of foreign exchange rate changes       185      (1,370)      -      -  cash and cash equivalents at beginning of the period         6,064        6,435        117        4,624             cash and cash equivalents at end of the period (note 15)       7,267      2,043      67      125               the accompanying notes form an integral part of the condensed financial statements.  steppe cement ltd (incorporated in labuan ft, malaysia under the labuan companies act, 1990) and its subsidiary companies   notes to the condensed interim financial statements (unaudited)   1.         general information                     steppe cement ltd ("the company") is incorporated and domiciled in malaysia. the company's and its subsidiaries' ("the group") principal place of business is located at aktau village, karaganda region, republic of kazakhstan. the company's shares are listed on the aim market of the london stock exchange plc.   the registered office of the company is located at brumby centre, lot 42, jalan muhibbah, 87000 labuan ft, malaysia.   2.         basis of preparation of condensed interim financial statements             basis of presentation                  the condensed interim financial statements of the group and the company are unaudited and have been prepared in accordance with international financial reporting standards ("ifrs").   the condensed interim financial statements do not include all the information and disclosures required in the annual financial statements and should be read in conjunction with the audited financial statements for the year ended 31 december 2024.    the condensed interim financial statements of the group and the company were authorised for issue by the board of directors on 10 september 2025.   use of estimates and assumptions   the preparation of financial statements in conformity with ifrs requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities, revenues and expenses and the disclosure of contingent assets and liabilities. due to the inherent uncertainty in making those estimates, actual results reported in future periods could differ from such estimates.     3.         significant accounting policies                                             basis of accounting                     the financial statements of the group and the company have been prepared under the historical cost convention except the revaluation of land and building to fair values in accordance with ias 16 "property, plant and equipment" (note 11).   the accounting policies adopted are consistent with those followed in the preparation of the group's annual financial statements for the year ended 31 december 2024, except for the adoption of new standards effective as of 1 january 2025.   the adoption of these amendments did not have an impact on the group's condensed consolidated interim financial statements.   the principal closing rates used in translation of foreign currency amounts are as follows:    usd 1 pound sterling  1.3713 1 ringgit malaysia  0.2371 1 euro dollar  0.8541 1 kazakhstan tenge ("kzt")  0.0019     kzt 1 us dollar  520.39     4.         review of results for the period   during the six-month period ended 30 june 2025, the group posted revenue of usd40.9 million, an increase of 19% from usd34.4 million in the corresponding period of 2024. the growth in revenue was mainly attributable to an 18% increased in sales volume, particularly in regions nearer to the plant.    the average sales price in tenge was kzt24,656 per tonne compared with  kzt21,458 per tonne in the same period of 2024. however, in usd terms, the average price remained  unchanged at usd48 per tonne.   the gross margin improved to 21% in the six-month period to 30 june 2025, compared with 15% in the same period last year, driven by higher volumes, increased selling prices and production efficiencies despite higher costs.  selling expenses decreased by usd0.7 million or 13% to usd5.4 million, while general and administration expenses increased by 6% (usd0.2 million) to usd3.6 million.   as a result, the group recorded a lower net loss of usd0.5 million, compared with a loss after tax of usd3.5 million in the same period of 2024.     5.         seasonal or cyclical factors   the group's revenue is closely linked to the construction sector which experiences seasonal, significant slow-down in construction activities due to extreme, cold temperature especially during the months of december, january and february in most parts of kazakhstan. each year, the group's sales improve after winter and typically peak during the summer months.   6.         segmental reporting   no industry and geographical segmental reporting are presented as the group's primary business is in the production and sale of cement which is located in the central region of the republic of kazakhstan.      7.         revenue   the group  the company  6 months ended  6 months ended  30 june 2025  30 june 2024   30 june 2025  30 june 2024  usd'000  usd'000   usd'000   usd'000   sales of manufactured goods 40,944  34,369  -  - transmission and distribution of electricity   4    7  -  - net interest income -  -  871  738         total 40,948  34,376  871  738     8.         finance costs   the group   6 months ended   30 june 2025  30 june 2024   usd'000  usd'000     interest expense on borrowings 533  436  other finance costs 78  178       total 611  614         9.         income tax expense   the group  the company  6 months ended  6 months ended  30 june 2025  30 june 2024   30 june 2025  30 june 2024  usd'000  usd'000   usd'000  usd'000     income tax expense -    -  -  -   deferred tax benefit 125    938  -  -          125  938   -   -         10.       earnings per share       the group     6 months ended   6 months ended   30 june 2025  30 june 2024   usd'000  usd'000       loss attributable to ordinary shareholders (476)  (3,504)       6 months ended   6 months ended  30 june 2025   30 june 2024  '000   '000     number of ordinary shares in issue at beginning and at end of period   219,000    219,000 weighted average number of ordinary shares at beginning and at end of period   219,000    219,000         earnings per share, basic and diluted (cents) (0.2)  (1.6)   the basic earnings per share is calculated by dividing the consolidated profit attributable to shareholders of the company by the weighted average number of ordinary shares in issue during the financial period.   there are no dilutive instruments in issue as at 30 june 2025 and 30 june 2024.  11.      property, plant and equipment, net       the group freehold land and land improvement       buildings     machinery and equipment   railway wagons       other assets   stand-by equipment and major spare parts     construction in progress       total  usd'000  usd'000  usd'000  usd'000  usd'000  usd'000  usd'000  usd'000 cost                at 1 january 2025 1,807  9,383  66,755  5,592  10,213  6,897  1,415  102,062 additions -  -  39  -  71  50  507  667 transfers -  63  379  453  61  (176)  (780)  - disposals -  -  (17)  -  (14)  -  (82)  (113) reclassification from inventories -  -  (2)  -  143  (389)  85  (163) exchange differences 11  (3,619)  1,802  27  168  (60)  13  (1,658)                 at 30 june 2025 1,818  5,827  68,956  6,072  10,642  6,322  1,158  100,795                   accumulated depreciation                at 1 january 2025 -  3,700  43,701  2,781  5,516  -  -  55,698 charge for the period -  174  1,965  155  540  -  -  2,834 disposals -  -  (17)  -  (14)  -  -  (31) exchange differences -  (3,655)  1,591  14  25  -  -  (2,025)                 at 30 june 2025 -  219  47,240  2,950  6,067  -  -  56,476                 net book value                  at 30 june 2025 1,818  5,608  21,716     3,122  4,575    6,322  1,158  44,319   at 31 december 2024 1,807  5,683  23,054  2,811  4,697    6,897  1,415  46,364     12.       other assets  the group  the company  as at  as at  as at  as at  30 june 2025  31 dec 2024  30 june 2025  31 dec 2024  usd'000  usd'000   usd'000   usd'000   site restoration fund 214  186  -  - others 6  122  -  -   total 220  308       -  -     13.       inventories   the group  the company  as at  as at  as at  as at  30 june 2025  31 dec 2024  30 june 2025  31 dec 2024  usd'000  usd'000   usd'000   usd'000   finished goods 6,105  6,527  -  - spare parts 6,376  5,674  -  - work in progress 1,219  4,986  -  - raw materials 3,344  2,703  -  - other materials 2,810  799  -  - packing materials 94  225  -  -         total 19,948  20,914  -  -  less: provision for obsolete inventories (690)  (600)  -  -          net 19,258  20,314  -  -     no additional provision for obsolete inventories is necessary based on current conditions as at 30 june 2025.   .                       14.       trade receivables   the group  the company  as at as at  as at  as at  30 june 2025  31 dec 2024  30 june 2025  31 dec 2024  usd'000  usd'000   usd'000   usd'000   trade receivables 1,270  1,267  -  - less: loss allowances (772)  (666)  -  -          498     601  -  -             the company enters into sales contracts with trade customers on cash terms. some customers with good payment history are granted certain credit periods on their cement purchases which are secured against bank guarantee or other credit enhancements.   the recoverability of trade accounts receivable depends to a large extent on the group's customers' ability to meet their obligations and other factors which are beyond the group's control. the recoverability of the group's trade accounts receivable is determined based on conditions prevailing and information available as at reporting date. the directors have reviewed the trade receivables and considered no further loss allowances for trade receivables is necessary based on conditions prevailing and available information as at 30 june 2025.     15.       cash and cash equivalents     the group     as at  as at     30 june 2025  31 dec 2024     usd'000  usd'000     cash in hand and at banks  460  199  short-term deposit  6,807  5,865    total    7,267  6,064                        16.       borrowings       the group     as at  as at     30 june 2025  31 dec 2024     usd'000  usd'000     current portion:        bank loans    1,950  3,121       non-current portion:         bank loans   2,842  2,072   total borrowings   4,792  5,193     undrawn loan amounts   as at 30 june 2025, the group has usd3.8 million in working capital facilities available for drawdown under the halyk bank jsc short-term loan facilities.      17.       related parties   related parties include shareholders, directors, affiliates and entities under common ownership, over which the group has the ability to exercise a significant influence.   other related parties include entities which are controlled by a director, which a director of the group has ownership interests and exercises significant influence.   balances and transactions between the company and its subsidiary companies, which are related parties of the company, have been eliminated on consolidation and are not disclosed in this note.   the transactions between a related party and the group included in the condensed consolidated income statement and condensed statement of financial position are as follows:                    the group                  purchase of services  30 june 2025  30 june 2024  usd'000  usd'000 other related party    office rental -  4                                                                                                                                                                                                                                           payable to related parties  30 june 2025  30 june 2024  usd'000  usd'000 other related party    office rental -  -      compensation of key management personnel   included in the staff costs are remuneration of directors and other members of key management during the financial period as follows:   the group  the company  30 june 2025  30 june 2024  30 june 2025  30 june 2024  usd'000  usd'000   usd'000   usd'000          short-term benefits 415  429  75  75   the remuneration of directors and key executives is determined by the remuneration committees of the company and subsidiary companies having regard to the performance of individuals and market trends.     18.       financial instruments   financial risk management objectives and policies   the operations of the group are subject to various financial risks which include foreign currency risk, credit risk and liquidity risk.   the condensed interim financial statements of the group do not include all financial risk management information and disclosures required in the annual financial statements. there has been no change in the financial risk management objectives and policies since the previous financial year ended 31 december 2024. the group continuously manages its exposures to risks and/or costs associated with the financing, investing and operating activities of the group.   fair value of financial assets and financial liabilities   fair value is defined as the price that would be received to sell an asset or paid to transfer a liability in an orderly transaction in the principal (or most advantageous) market at the measurement date under current market condition regardless of whether that price is directly observable or estimated using another valuation technique. as no readily available market exists for a large part of the group's financial instruments, judgement is necessary in arriving at fair value, based on current economic conditions and specific risks attributable to the instrument. the fair value of the instruments presented herein is not necessarily indicative of the amounts the group could realise in a market exchange from the sale of its full holdings of a particular instrument.    the following methods and assumptions were used by the group to estimate the fair value of financial instruments:      cash and cash equivalents the carrying value of cash and cash equivalents approximates their fair value due to the short-term maturity of these financial instruments.   trade and other receivables and payables and accrued and other liabilities for assets and liabilities with maturity less than twelve months, the carrying value approximate fair value due to the short-term maturity of these financial instruments.   borrowings the fair values of the borrowings are estimated by discounting expected future cash flows at market interest rates prevailing at the end of the relevant period with similar maturities adjusted by credit risk.   as at 30 june 2025 and 2024, the fair values of financial assets and short-term financial liabilities approximate their carrying values.     19.       contingencies   there are no significant changes in the contingencies since the financial year ended 31 december 2024.               this information is provided by rns, the news service of the london stock exchange. rns is approved by the financial conduct authority to act as a primary information provider in the united kingdom. terms and conditions relating to the use and distribution of this information may apply. for further information, please contact rns@lseg.com or visit www.rns.com.  rns may use your ip address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of 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Label: Gesunken