16 December 2021
(EPIC: SRC / Market: AIM / Sector: Construction Materials)
('SigmaRoc', the 'Group' or the 'Company')
Update on Trading and Greenbloc
Appointment of Independent NED
SigmaRoc (AIM: SRC), the AIM quoted buy-and-build construction materials group, is pleased to update the market on its performance for the 11 months to 30 November 2021 (the 'period'), as well as several key developments in the Group:
- Group revenues for the period were £236.5m, up 107% over the prior year.
- Like-for-like revenues increased 13.4% year-on-year in the period, including like-for-like growth of 9% against a strong comparative period in H2.
- Cost inflation continues to be effectively managed, supported by contractual pass through.
- Product availability has remained good, in spite of supply chain challenges.
The Group has traded well through the period, with sustained demand maintained in all key end market and customer segments. The outlook for residential and infrastructure construction remains very encouraging across the Group's UK and Northern European markets, with demand for higher grade materials for pulp, board, steel, environmental and chemical applications also supported by structural growth drivers.
As a result of the continued solid trading, the Board remains confident in the Company delivering an underlying EBITDA performance for the full year ahead of analyst consensus.
The business is carrying good momentum into the year end, which should support further organic progress in 2022. In addition, there are a number of active initiatives currently in process, supported by the Group's strong cash generation, which have the potential to further accelerate growth and strategic development of the business.
Since completing the acquisition of Nordkalk on 31 August 2021, work to integrate the Nordkalk business within SigmaRoc's platform setup has progressed well. A series of eight integration initiatives have been completed or are ongoing, covering reporting, finance, IT, governance, safety, trading, production and investment. The integration process has engendered a strong collaborative approach between Nordkalk and SigmaRoc, which is already identifying potential incremental value opportunities from the combination. Several workstreams on product development and investment initiatives are underway, with the aim to increase materials utilisation within various Nordkalk quarries.
Updates on Greenbloc
The Group is also pleased to announce several key developments for Greenbloc, its ultra-low carbon concrete products line. The Group has significantly expanded the channel base for its Greenbloc products, which are now available through a number of merchants and buying groups across the UK, including Travis Perkins, Jewson, Buildbase, Huws Gray, MKM, EH Smith, H&B and Fortis. The Group is also currently working with several major contractors on significant commercial and infrastructure projects.
As of January 2022, the Group will offer Greenbloc technology across its concrete products business, becoming the first concrete products supplier in Europe to offer ultra-low carbon concrete products across its entire range.
Proposed appointment of Independent Non-Executive Director Axelle Henry
SigmaRoc is also very pleased to announce the proposed appointment of Ms Axelle Henry as an Independent Non-Executive Director, with effect from March 2022, subject to satisfaction of customary new director due diligence and onboarding processes.
Ms Henry has served as Chief Financial Officer for Verlinvest Group, a Brussels-based international investment business, since April 2014 and also serves on the board of directors for a number of their private companies, as well as Nasdaq quoted Vita Coco. She has held a variety of senior executive positions, including as Deputy Chief Financial Officer of Groupe Bruxelles Lambert. Ms Henry has over 20 years' experience in the Private Equity and Investment Sector, starting her career with KPMG as senior auditor. She holds degrees in commercial engineering from the Solvay Business School (Université Libre de Bruxelles).
David Barrett, Chairman of SigmaRoc, commented:
"We look forward to welcoming Axelle Henry to the board of the business. Her experience and profile will not only reinforce the quality of the board but bring a fresh perspective on building companies based around innovation, brands and consumer focused products. We look forward to starting a new year with a high quality Group of businesses and plenty of potential to drive them forward."
Max Vermorken, CEO of SigmaRoc, commented:
"I am very pleased we can end a very busy year on such a positive note. The Group is trading well, we have a large number of projects and initiatives in the pipeline, our Greenbloc products are gaining more and more attention and our board is set to gain a very talented new member. 2022 is expected to bring further development of the Group as we build on the six platforms across the UK and Northern Europe."
This announcement contains inside information for the purposes of Article 7 of EU Regulation 596/2014, which forms part of United Kingdom domestic law by virtue of the European (Withdrawal) Act 2018.
Information on the Company is available on its website, www.sigmaroc.com.
Tel: +44 (0) 207 002 1080
Strand Hanson Limited (Nominated and Financial Adviser)
James Spinney / James Dance / Rob Patrick
Tel: +44(0) 207 409 3494
Liberum Capital (Co-Broker)
Neil Patel / Jamie Richards / Ben Cryer
Tel: +44 (0) 203 100 2000
Peel Hunt (Co-Broker)
Mike Bell / Ed Allsopp
Tel: +44 (0) 20 7418 8900
Dean Masefield / Florian Werner
Tel: +44 (0) 207 002 1080