SCRAP giant European Metal Recycling (EMR) says it is well placed to grow despite a severe downturn in its markets.

The Warrington company’s latest accounts, filed at Companies House, show that its underlying turnover for 2008 stood at £2.8bn – up from £2.3bn in 2007.

Including acquisitions, its overall turnover for 2008 stood at £3.1bn.

EMR, which operates three sites in Liverpool’s docks and another in St Helens, saw pre-tax profits fall from £119m to £63m after a £41m impairment in its US businesses.

Chairman Philip Sheppard said scrap prices reached record levels in the first half of 2008 but slumped in the second half.

Mr Sheppard added: “The downturn in market conditions, while expected, was more severe than that anticipated by the board.

“Notwithstanding the fact that EMR – through its scale, culture and significant historic capital investment – is a low-cost operator, the group responded quickly to the changed commercial environment.

“In the face of reduced purchase and sales volumes, EMR undertook a number of corrective options including reducing headcount and temporarily mothballing certain sites and operations.

“The financial position of the group remains strong.

“The group had significant available liquidity at the year end, with access to an additional £182,403,000 of undrawn committed borrowing facilities. This was increased post year end, as the group refinanced its UK operations.

“The corrective actions and refinancing have produced a more streamlined group with access to significant liquidity which is well-placed to deal with the weaker economic conditions, yet scalable for the market recovery.”

EMR has 100 locations worldwide and employs 2,600 people.

The accounts show the company’s four directors were paid £19.5m between them in 2008.