SigmaRoc LON:SRC, the construction materials company published its full-year results to the end of December today (17th March).
As previously reported, the AIM-listed, London-headquartered building materials firm operates 100 sites in 14 countries supplying a nearly 3 billion tonnes of materials to the trade including limestone, aggregate, asphalt and ready-mix concrete.
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SigmaRoc had a good start to the year, which in the following six months the company built upon. SigmaRoc’s revenue surged 72% year-on-year to £997.6m, a cigarette-paper’s breath away from breaking through the £1bn barrier and ahead of market expectations.
Revenue grew on the back of its acquisitions in the lime and limestone sector. Earnings were up 92% to £224.6m with margins improving 22.5%.
Underlying profit after tax increased to £98.1m, translating into underlying earnings per share of 8.35p, representing a 3% increase year-on-year, and an eighth consecutive year of growth.
Shares opened the week (17th March) at 93.5p, jumping to 97.6p soon after the market opened, before settling to around 94.9p/95p by midday. Over one-year shares are up 44% and over the year-to-date up 28.4%. The company has a market capitalisation of £1.06bn.
SigmaRoc’s transformational acquisition
The company completed, as reported, the transformational acquisition of CRH’s LON:CRH lime and limestone quarries amongst other properties in a £1bn spending spree last year. Subsequently SigmaRoc spent the second-half of the year integrating its new assets in Germany, the Czech Republic, Republic of Ireland, Poland and the UK.
Management was pleased that despite the CRH transaction being very front-loaded with equity and debt that EPS remained strong, which the company said showed the market’s continued confidence in the firm’s long-term business plan and prospects.
SigmaRoc was also busy rationalising its portfolio, disposing GBP41m of non-core Belgian and French concrete properties whilst developing asphalt plants in Wales and Belgium. In total the company said it had achieved £8m in synergies, and is targeting £33m within two-years.
The coming year will see SigmaRoc drilling down on developing synergies across its portfolio of assets and building-up operational efficiency. The company expects £17m to £21m further disposals. which it says will benefit its earning.
Despite a rocky start to the year in geopolitical and economic terms, SigmaRoc’s management said that on a micro-level the company has had a good start.
Max Vermoken, SigmaRoc’s CEO said: “Looking ahead, we remain confident in our ability to deliver value for our stakeholders and to maintain our trajectory of growth. We have seen a positive start to 2025. The demand for lime and limestone as critical minerals in the ongoing shift to sustainable industry is set to grow, and SigmaRoc is well-positioned to capitalise on this trend.”
Favourable debt refinancing
The company further strengthened its financial position, last month securing an amended five-year facility that replaces the bridge loan expiring in November. The new facility is a private placement taken with PGIM Private Capital for €125m, in two tranches, at a fixed rate of 4.93% with a bullet repayment in February 2030. This was SigmaRoc’s first debt private placement, and moving into this bracket of the debt capital markets signifies further confidence in the company’s long-term vision.
The company’s shares also benefitted from the block sale of CRH’s shareholding in SigmaRoc. CRH had been holding 15% of the company’s shares. This secondary share placing was oversubscribed and taken up by a strong list of institutional investors, including a number of new institutions.
SigmaRoc’s impressive full-year results highlight its successful expansion strategy and strong financial performance, positioning the company for continued growth in 2025. With a transformational acquisition, strategic divestments, and a favourable debt refinancing, SigmaRoc has strengthened its market position and financial stability. As demand for lime and limestone continues to rise, the company is well-placed to capitalise on industry trends, delivering value to shareholders and maintaining its upward trajectory.
