REG - SigmaRoc PLC - Year-end trading update

SigmarocAnnouncement

Today 07:00

For best results when printing this announcement, please click on link below:
https://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20260119:nRSS3222Pa&default-theme=true

RNS Number : 3222P  SigmaRoc PLC  19 January 2026

19 January 2026

 

 

 

SIGMAROC PLC

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

 

Year-end trading update
Strong 2025 delivery ahead of consensus(1)
 Expected to exceed prior EPS guidance by c.10%

 

SigmaRoc, Europe's leading lime and minerals group, is pleased to update the
market on Group trading for the year ended 31 December 2025 ('FY25').

 

 

Highlights

 

The Group is pleased to have completed the 2025 financial year with strong
expected results across all key metrics. This trading update, preceding the
publication of the annual report for the full-year results, provides
comprehensive details on the Group's key developments during 2025 and into the
start of 2026.

 

Financial performance including full year contribution from UK and Poland
acquisitions:

·      Revenue 4% higher year-on-year ('YoY') at £1,036m (FY24: £998m)
with pricing and mix benefits offsetting lower volumes;

·      Underlying(2) EBITDA to exceed c.£262m, up over 16% YoY (FY24:
£224.6m);

·      Underlying(2) EBITDA margin up 280bps YoY to c.25.3%, reflecting
strong cost discipline and synergy delivery;

·      Underlying EPS(2) c.10.5p, approximately 10% ahead of previous
guidance and 26% higher YoY;

·      FY25 covenant leverage to close at c.1.8x (FY24: 2.1x), supported
by continued strong cashflow in the second half;

·      ROIC to improve to over 12%;

·      FY26 is expected to benefit from the German infrastructure
stimulus and improving sentiment in selected end-markets, including steel and
residential; further detail will be provided at the full-year results.

Pro-forma highlights(3)

·      Revenue decreased by 1% to c.£1,029m due to overall volume
reduction;

·      Underlying(2) EBITDA rose by c.8% YoY, driven by strong synergy
execution and cost discipline;

·      Underlying(2) EBITDA margin improved by 210bps to 25.4%
reflecting self-help initiatives and cost control.

Volumes and market conditions

·      Consistent with H1, core volumes softened by 3% YoY, reflecting
construction and steel market demand;

·      Through planned synergy initiatives on plant network and
commercial optimisation, overall volumes reduced by a further 6.8% as per
prior announcements;

·      The Group continues to see encouraging signs across a number of
markets;

·      UK & Ireland delivered a strong year through disciplined
execution across manufacturing, aggregates and lime;

·      Belgium and the Netherlands continue to show signs of recovery,
finishing the year positively across both dimensional stone and aggregates;

·      In Germany, signs of optimism continue, ending the year stronger
than anticipated. Increased residential planning approvals provide
encouragement for the year ahead;

·      The Nordics delivered a robust result for the year through
excellent cost control, with stability in most segments and the first signs of
recovery in construction visible towards the year end.

Synergies programme

·      The Group has achieved its minimum target of €40m recurring
synergies, two years ahead of schedule;

·      These synergies have lifted Group EBITDA from £238m at the time
of the CRH asset acquisition to £262m at FY25, and have offset £10m of
volume-related EBITDA loss;

·      Further improvement will be delivered through continued self-help
and optimisation initiatives;

·      As a result, the Group considers its synergies programme as
having achieved its initial objectives while continuing to drive efficiency
improvements through its self-help programmes.

Divestments

·      The Group has agreed the sale of three businesses, for total
proceeds of c.£18m, at an aggregate multiple of c.7.5x LTM EBITDA;

·      The divestments consisted of a mortar operation in Germany, a
ready-mix business in France and a quarry and aggregates washing installation
in the UK;

·      The divestments reflect portfolio optimisation, with the assets
transferred to owners better positioned to develop them;

·      Following the completion of these divestments, the Group has
formally closed its divestment programme, whilst continuing to monitor whether
it remains the best owner of its portfolio assets.

Refinancing

·      The Group has started the process of refinancing its principal
banking facilities;

·      The new facility is expected to deliver significant additional
capacity within the RCF, supporting the funding of future acquisitions, along
with improved terms;

·    We will update the market in due course.

Ventures

·      SkreenHouse, SigmaRoc's venture investments arm, has been active
since inception, with over 250 projects reviewed, 74 active follow-ups, 10 due
diligence and 8 investments, including the following in 2025:

o  Konkrete: Technology that connects suppliers and transporters to deliver
faster, cheaper, and more efficient service to construction sites;

o  Adaptavate: Sustainable construction materials that reduce carbon
footprint through biobased and renewable products;

Sustainability / ESG

·      The Group maintained its CDP Climate Change rating of B in 2025,
reflecting continued strong performance in climate-related risk management and
disclosure; CDP Water Security rating improved from C to B;

·      We have started the program to convert our kilns to biofuel with
the conversion of a lime kiln in Czechia representing tangible progress in
decarbonising the kiln network;

·      The Group increased its renewable electricity share from 71% to
83%, supporting continued reduction in Scope 2 emissions.

 

 

 

Investor engagement

·      The Group's inaugural Capital Markets Day in May was well
attended, and a number of site visits and investor events were held throughout
the year to support investor understanding of the business;

·      In 2025, SigmaRoc welcomed a number of new institutions and other
investors to the shareholder register and is grateful to all shareholders for
their continued support.

Outlook for FY26

·      The Group expects 2026 to benefit from a number of structural
trends, underpinning its strong position in the European lime and limestone
markets;

·      Weather disruptions with heavy frost and snow have slowed the
start of the year in certain regions like Poland and Belgium;

·      Cost management remains a core focus generally, across energy,
CO2 and inflation as well as geopolitically induced;

·      The German stimulus is expected to support industrial activity
and construction demand across our Central Region, with improvement currently
expected from H2 onwards;

·      Measures including tariffs are expected to improve conditions in
the European steel industry, again with the recovery felt more strongly from
H2;

·      Increased European defence spending is expected to provide
additional support across steel, construction and related end-markets;

·      Lower interest rates and improving mortgage activity are seen by
the Group as encouraging indicators in residential demand;

·      Growth in data centre, AI and green economy investments provide
further opportunities for our construction materials segment.

In summary, the Group remains well positioned to benefit from several emerging
structural and cyclical trends which will support the European economy across
2026 and beyond. Strong margins, cash generation and M&A activity will
further enhance this position. The Board's current outlook for FY26 is
therefore cautiously optimistic, as it looks to update the market further with
the publication of its full FY25 Results in March.

 

 

 

Max Vermorken, CEO of SigmaRoc, commented:

"This 2025 update once again demonstrates the resilience and quality of our
business. I would like to thank all of our customers and colleagues who have
contributed to the delivery of these strong results. We have taken timely
actions to capture synergies and further operational improvements, delivering
strong progress in operational metrics in this last year.

 

"Our business is focused on lime and limestone, and I am confident we are well
positioned for future growth. Lime is an essential product, that plays a
critical role in several key societal trends, from decarbonisation to
sustainable construction, to environmental protection and the electrification
of the economy.

 

"We expect our final 2025 results to be ahead of expectations, and we are well
positioned to continue our growth in 2026. With strong positions in all
markets and supportive structural growth drivers, the outlook for SigmaRoc
remains very positive."

 

 

FY25 annual report and financial statements and ESG report

 

The Group intends to publish its audited results for the year ended 31
December 2025 and its ESG report by the end of March 2026.

 

Notes:1 Consensus expectations for SigmaRoc, being the average of forecasts
for the year ending 31 December 2025 provided by Analysts covering the
Company, are revenue of £1,058m, underlying EBITDA of £250m and EPS of 9.7p;
2 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; 3 Pro-forma calculation includes all
continuing operations in full for 2024 and 2025. For the avoidance of doubt
all numbers in this announcement are unaudited.

 

THIS ANNOUNCEMENT CONTAINS INSIDE INFORMATION FOR THE PURPOSES OF THE MARKET
ABUSE REGULATION (EU) NO. 596/2014 AS IT FORMS PART OF UK LAW BY VIRTUE OF THE
EUROPEAN UNION (WITHDRAWAL) ACT 2018, AS AMENDED

 

Information on the Company is available on its website, 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)

 Jan van Beek (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

 

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, air pollution and direct air capture.

SigmaRoc invests in and acquires businesses in the lime and minerals sector.
The principal activity of the Group is the production of lime and minerals
products. The Group's aim is to create value for shareholders through the
successful execution of its strategy in the lime and minerals sector.

 

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. The Group seeks to implement
operational efficiencies that improve safety, enhance productivity, increase
profitability and ultimately create value for Shareholders.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  TSTLDLLFQFLLBBZ



            Copyright 2019 Regulatory News Service, all rights reserved