REG - SigmaRoc PLC - Q3 Trading Update

SigmarocAnnouncement

28/10/2024 07:00

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RNS Number : 7226J  SigmaRoc PLC  28 October 2024

28 October 2024

 

 

 

SIGMAROC PLC

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

 

Q3 Trading Update

Strong Q3 with further margin growth and in line with full year expectations

 

SigmaRoc, a leading European lime and minerals group, is pleased to provide an
update on trading for the nine months ended 30 September 2024 (the 'Period').

 

Financial highlights

 

Strong trading in Q3 positions the Group for a robust full-year finish

 

·      Revenue increased 67% YoY to £729m

·      Underlying(1) EBITDA increased 88% YoY to £165m, with margin
improving to 22.6%

·      On a proforma(2) basis for the Period:

o  volumes decreased 3% due to residential construction and environment
sectors, mitigated by positive food, agriculture, mining and infrastructure
sectors

o  revenue decreased 4%, due to lower input cost pass through and softer
volumes

o  underlying EBITDA improved 2%, reflecting strong cost control and
resilient pricing

·      Leverage on track to close the year below 2.3x

·      The Board remains confident in achieving FY24 consensus
expectations(3)

 

Strategic update

 

Update on CRH acquisitions, integration and synergies

 

·      Acquisition of Polish lime assets completed on 1 September 2024

·      Integration of all CRH lime businesses acquired in 2024,
including Poland, nearing completion

·      Guidance on synergies to be delivered by 2027 increased to €35m
from €30m at the interims, with benefits from the recent acquisition of the
Polish assets still to come and upper end guidance remaining at €60m

 

Operations and trading

 

Q3 has seen robust trading in most markets, despite mixed demand in
residential construction and the German power / auto sectors. With reduced
pass-through effects, proforma revenues were down 4%, and volumes down 3% on
the same basis.

 

Pricing remained robust, supported by tight cost control and the benefits of
increased scale resulting in continued improvement in the EBITDA margin to
22.6% and driving proforma EBITDA up 2%.

 

Fundamental to another solid quarter was the diversified model and end market
exposure, showing once again resilience as several markets outperformed
expectations, particularly the North-East and North-West regions.

 

Outlook

The positive start to the second half continues with food, agriculture, mining
and infrastructure sectors performing well, mitigating continued softness in
residential construction and isolated pockets of other markets. We welcome
expected interest rates reductions in Europe and the UK, which should boost
general sentiment and support a recovery in residential construction in
particular.

 

SigmaRoc's unique position in the European lime market and its significant
resource base differentiate the Group from other businesses lacking broad end
market exposure, or access to high quality and strategically located mineral
resources.

 

Our staff have delivered another Period of progress, nearing completion of the
CRH lime assets integration, and our expectations from the synergy program
continue to improve.

 

The Board's outlook for FY24 remains unchanged, with EBTIDA in line with
consensus expectations(3).

 

 

Max Vermorken, CEO of SigmaRoc, commented:

 

"The Group has delivered excellent results for the Period despite the current
mixed landscape and is well positioned to benefit from improving market
sentiment. Whilst remaining mindful of conditions in some of the Group's
markets, the strong Q3 performance, combined with our diversified end market
exposure and decentralised operating model, gives the Board confidence in
maintaining full year expectations."

 

 

Information on the Company is available on its website, www.sigmaroc.com
(http://www.sigmaroc.com) .

 

Notes:

 

(1) Underlying results are stated before acquisition related expenses, certain
finance costs, redundancy and

reorganisation costs, impairments, amortisation of acquisition intangibles and
share option expense. These measures are not defined by UK IAS and therefore
may not be directly comparable to similar measures adopted by other companies.

 

(2) Proforma calculation includes Deal 2 and Deal 3, plus all acquisitions
made by SigmaRoc in 2023, for the entire Period on an underlying basis.

 

(3) Consensus expectations for SigmaRoc, being the average of forecasts for
the year ending 31 December 2024 provided by Analysts covering the Company,
are revenue of £1,056.1m and underlying EBITDA of £221.0m.

 

 

For further information, please contact:

 

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

 Max Vermorken (Chief Executive Officer)

 Garth Palmer (Chief Financial Officer)      ir@sigmaroc.com (mailto:ir@sigmaroc.com)

 Tom Jenkins (Head of Investor Relations)

 Panmure Liberum (Nomad and Co-Broker)       Tel: +44 (0) 203 100 2000

 Scott Mathieson / John More / Dru Danford

 Deutsche Numis (Co-Broker)                  Tel: +44 (0) 20 7260 1000

 Richard Thomas / Hannah Boros

 Walbrook PR Ltd (Public Relations)          Tel: +44 20 7933 8780 sigmaroc@walbrookpr.com

 Tom Cooper / Nick Rome                      Mob: +44 7971 221972

 

About SigmaRoc

SigmaRoc is a quoted European lime and minerals Group.

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, flue gas cleaning and direct air capture.

SigmaRoc seeks to create value by purchasing assets in fragmented 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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