Source - Alliance News

SigmaRoc PLC on Wednesday said it is confident it will deliver its full-year expectations as it reported a rise in revenue in its latest quarterly update.

The London-based buy-and-build group targeting construction materials assets in the UK and Northern Europe said in the nine months to September 30, like-for-like revenue grew 7% year-on-year to £435.9 million.

SigmaRoc attributed the growth to diversified market exposure and effective pricing strategies.

LFL group volumes remained in line with first-half levels, with a 4% decline driven by ‘softer demand’ in the residential construction sector, offset by ‘resilient conditions in infrastructure and industrial mineral markets.’

SigmaRoc’s underlying earnings before interest, tax, depreciation and amortisation margin for nine-month period was 20%, surpassing expectations. This resulted in a 11% rise in underlying Ebitda to £87.1 million from £77 million a year ago.

The firm noted positive cash generation in the period.

Looking ahead, SigmaRoc is ‘confident’ it will deliver its full-year expectations of £596.9 million in revenue and an underlying Ebitda of £110.2 million, but said it remains ‘mindful’ of the continued challenging conditions among some of its markets.

SigmaRoc posted revenue of £538.0 million and Ebitda of £101.7 million in 2022.

Chief Executive Officer Max Vermorken said: ‘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 [the first half] 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.’

Shares in SigmaRoc were up 0.8% at 49.80 pence each in London on Wednesday midday.

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