REG - SigmaRoc PLC - Admission to AIM

SigmarocAnnouncement

04/01/2024 08:15

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RNS Number : 5881Y  SigmaRoc PLC  04 January 2024

4 January 2024

 

SIGMAROC PLC

 

("SigmaRoc", the "Company" or the "Group")

 

Admission to AIM

 

SigmaRoc (AIM: SRC), the AIM quoted lime and limestone group, is pleased to
announce the Admission of its Enlarged Share Capital, comprising 693,801,899
Existing Ordinary Shares, 418,464,565 Placing Shares and 2,588,066 REX
Intermediaries Offer Shares, to trading on AIM effective from 8.00 a.m. on 4
January 2024 and completion of the acquisition of the Deal 1 Targets.

 

Highlights of the Acquisitions

 

·      Provide an opportunity to become Northern Europe's leader in lime
and a key supplier to the structural growth markets critical for the green
transition.

·      Lime and limestone are key resources in the transition to a more
sustainable economy. New applications for lime and limestone products as part
of a drive for sustainability include the production and recycling of lithium
batteries, the decarbonisation of construction including through substitution
of cementitious material and new building materials, and environmental
applications including lake liming, air pollution and direct air capture.

·      The lime market is expected to continue to grow and to be worth
€1.9 billion in 2031 across the Enlarged Group's markets.

·      Pro forma revenue of the Enlarged Group for FY22 would be £1
billion with underlying EBITDA of £211 million (assuming, in each case,
exercise of the UK Call Option and Polish Call Option).

·      The Enlarged Group is expected to be significantly cash
generative with a free cash flow target in excess of £100 million per annum
which is expected to enable the Enlarged Group to de-gear at a rate of 0.5x
per year with target leverage of 1.0x.

·      The Targets, together, have a consistent performance track record
delivering FY22 revenue of €579.7 million and EBITDA of €133.7 million and
EBITDA margin in excess of 20 per cent.

·      Expected to deliver revenue growth opportunities and cost
synergies resulting in at least €30 million of EBITDA contribution by 31
December 2027.

·      The Targets are aligned with SigmaRoc's ESG and net zero
ambitions.

·      Whereas the Deal 1 Targets are stand-alone entities, the Call
Option Targets (being the UK Target and the Polish Target) require carving out
of existing CRH businesses in order to be acquired.

·      Total consideration payable by the Company for the Deal 1 Targets
is €745 million (approximately £645 million).

 

Trading

 

SigmaRoc has continued to trade well since the October Q3 update. The Company
will provide fuller commentary later in January with results expected to be at
least in line with market expectations*.

 

Defined terms used throughout this announcement have the meanings set out in
the admission document published by the Company on 23 November 2023 unless the
context requires otherwise.

 

*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 £596.9m and underlying EBITDA of £110.2m.

 

 

Information on SigmaRoc is available on the Company's website
at: www.sigmaroc.com (http://www.sigmaroc.com/) .

 

For further information, please contact:

 

 SigmaRoc plc                                                                    Tel: +44 (0) 207 002 1080

 Max Vermorken (Chief Executive Officer)                                         ir@sigmaroc.com

 Garth Palmer (Chief Financial Officer)

 Tom Jenkins (Head of Investor Relations)

 Liberum Capital Limited (Nominated and Financial Adviser, Joint Bookrunner and  Tel: +44 (0) 203 100 2000
 Co-Broker)

 Dru Danford / Ben Cryer / Mark Harrison / John More / Anake Singh

 Peel Hunt (Joint Bookrunner and Co-Broker)                                      Tel: +44 (0) 20 7418 8900

 Investment Banking

 Mike Bell / Ed Allsopp / Ben Harrington

 ECM Syndicate & Broking

 Sohail Akbar / Jock Maxwell Macdonald / Tom Ballard

 Walbrook PR Ltd (Public Relations)                                              Tel: +44 20 7933 8780 /
 Tom Cooper / Nick Rome                                                          sigmaroc@walbrookpr.com

                                                                                 Mob: +44 7748 325 236 (Nick)

 

About SigmaRoc plc

SigmaRoc is an AIM-quoted lime and limestone 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 through the selection of projects with strong
asset-backing.

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