TIDMSRC
RNS Number : 4262Q
SigmaRoc PLC
18 October 2023
18 October 2023
(EPIC: SRC / Market: AIM / Sector: Construction Materials)
SIGMAROC PLC
( ' SigmaRoc ', the 'Group' or the 'Company')
Q3 Trading Update
Continued strength in Q3, margin growth and full year
expectations unchanged
SigmaRoc plc, the specialist quarried materials group, is
pleased to update the market on Group trading for the nine months
ended 30 September 2023 (the 'Period').
Financial highlights
-- Like-for-like ('LFL') revenue growth of 7% in the Period to
GBP 435.9m, reflecting the benefits of diversified market exposure
together with effective pricing actions;
-- LFL Group volumes evolved in line with 1H23, at -4%, given
softer demand in the residential construction sector which was
largely offset by resilient conditions in infrastructure and
industrial mineral markets;
-- Underlying EBITDA margin in the Period of 20% was ahead of
both the prior year and management's expectations, resulting in
underlying EBITDA for the Period up 11% LFL to GBP87.1m;
-- Cash generation for the Period has been positive with the
focus on de-gearing through to 31 December 2023;
-- The Board remains confident in the Group delivering FY23
expectations*, while being mindful of the uncertain backdrop.
Strategic update
-- Integration of businesses acquired in 2023 progressing well
and delivering expected synergies;
-- Incorporation of JV with ArcelorMittal expected this week,
with the site for the new lime kilns now identified;
-- Aqualung carbon capture unit has completed trials to capture
CO(2,) and is now being developed to utilise captured CO(2) via a
dedicated purification, compression and liquefaction unit;
-- Launch of Puccini blue, a revolutionary, highly sustainable
re-interpretation of Belgium Blue Stone, revealing unique features
not seen in other natural stone;
-- Progress on Materials Evolution partnership to produce
low-carbon concrete products with the first plant on CCP's site
near Wrexham expected to be operational mid-2024.
Operations and trading
Q3 has seen continued robust trading in most markets, thereby
offsetting the anticipated weakness in new build construction, some
agricultural products, and the earlier weakness in paper. Overall
pricing evolved favourably, while some of the higher pass-through
costs abated, along with further operational improvements,
translating into improved margins. As a result, revenues rose 7%
LFL on slightly softer volumes at -4% LFL. Including the
contribution from acquisitions, Group revenues increased by 10%
year-on-year in the Period to GBP 435.9m.
Fundamental to this solid evolution across the third quarter is
the diversified model and end market exposure which continues to
provide resilience with several markets outperforming
expectations.
-- 42% of Group revenues for the Period ('Group Revenues') are
derived from industrial minerals markets which have seen demand in
line with budget, supported by structural drivers. In particular a
recovery in pulp, paper & board following some destocking
earlier in the year, alongside positive trends in environmental,
agriculture & chemicals and continued strength in metals have
led to a good performance in industrial minerals markets.
-- 58% of Group Revenues are derived from construction markets,
with well over half of this from infrastructure applications which
have experienced continued strong demand. Whilst residential
markets remain soft, we continue to manage this and to divert our
assets towards the stronger infrastructure areas where we have
greater visibility.
Outlook
Whilst remaining mindful of the continued challenging conditions
in some of the Group's markets, the delivery of a strong set of Q3
numbers, combined with our diversified end market exposure and
decentralised operating model, provides the Board with confidence
in delivering unchanged full year expectations.
Max Vermorken, CEO of SigmaRoc, commented:
"We have delivered another quarter of solid performance. The
backdrop is not a steady one, but our team keeps delivering good
products and good levels of service to our customer base, thereby
securing the performance of the Group. The strategic initiatives we
launched in H1 are all now contributing, and I am looking forward
to updating the market on what I expect to be another year of
growth and strategic progress."
*Consensus expectations for SigmaRoc, being the average of
forecasts for the year ending 31 December 2023 provided by Analysts
covering the Company, are revenue of GBP596.9m and underlying
EBITDA of GBP110.2m.
Information on the Company is available on its website,
www.sigmaroc.com .
For further information, please contact:
SigmaRoc plc Tel: +44 (0) 207
Max Vermorken (Chief Executive Officer) 002 1080
Garth Palmer (Chief Financial Officer)
Tom Jenkins (Head of Investor Relations)
ir@sigmaroc.com
Liberum Capital (Co-Broker) Tel: +44 (0) 203
Dru Danford / Jamie Richards / Ben Cryer 100 2000
Peel Hunt (Co-Broker) Tel: +44 (0) 20 7418
Mike Bell / Ed Allsopp 8900
Walbrook PR Ltd (Public Relations)
Tom Cooper / Nick Rome Tel: +44 20 7933
8780 / sigmaroc@wallbrookpr.com
Mob: +44 7971 221972
(Nick)
About SigmaRoc plc
SigmaRoc is an AIM-listed buy-and-build group targeting quarried
materials assets in the UK and Northern Europe. It seeks to create
value by purchasing assets in fragmented materials markets and
extracting efficiencies through active management and by forming
the assets into larger groups. It seeks to de-risk its investments
via strong asset backing at its projects.
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END
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October 18, 2023 02:00 ET (06:00 GMT)
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