REG - SigmaRoc PLC - Interim Results, Analyst Briefing & Investor Pres

SigmarocAnnouncement

24/07/2025 07:00

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RNS Number : 3196S  SigmaRoc PLC  24 July 2025

24 July 2025

 

(EPIC: SRC / Market: AIM / Sector: Construction Materials)

 

SIGMAROC PLC

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

 

 

Trading Update

Strong first half performance underpins confidence in full year expectations

Notice of Interim Results, Analyst Briefing & Investor Presentation

 

SigmaRoc, the Northern European lime and minerals Group, is pleased to provide
the following trading update for the six months to 30 June 2025 ('H1' or the
'Period') reflecting a performance ahead of our expectations(1). The Group
expects to announce its interim results in September 2025.

 

Highlights:

·      H1 revenues(2) £510m (H1 2024: £450m), up 13% YoY;

·      Underlying EBITDA(2) of £118m (H1 2024: £97m), up 22% YoY;

·      Underlying EBITDA(2) margin improved to 23.1% (H1 2024: 21.6%),
up 150bps YoY;

·      Underlying EPS expected to close over 4.6p (H1 2024: 3.2p), up
44%;

·      Effective cash management during the period with covenant
leverage at 2.0x (31 December 2024: 2.1x, H1 2024 2.6x);

·      Completion of part two of the announced ready-mix disposal in
Northern France; and

·      The Board's view on the 2025 full year outlook remains
unchanged(3).

 

Pro-forma highlights(4):

·      H1 revenues reduced 1% (H1 2024: £516m);

·      Underlying EBITDA up 2% versus H1 2024 (H1 2024: £116m), through
synergy delivery and continued cost control;

·      Underlying EBITDA margin up 70bps (H1 2024: 22.4%);

·      Core volumes c.3% lower due to softness in the construction and
steel markets along with some temporary external headwinds such as customer
maintenance shutdowns and weather;

·      Planned synergy initiatives reduced volumes by additional c.4%
through plant network and commercial optimisation;

·      End of a temporary supply arrangement for a customer emergency at
lower margins represented a further c.2% reduction.

 

 

Trading and volumes

 

The Group's market diversification supported a solid trading performance
against a challenging macroeconomic backdrop. Overall, reduced volumes led to
a 1% revenue decline. Core volumes remained fairly resilient in spite of the
market backdrop. Active mix optimisation and plant network utilisation reduced
volumes in lower-margin areas, in line with our margin strategy.

 

External factors affecting core volumes included:

·      Customer specific logistics issues in Central Europe;

·      Weather-related delay to the agricultural season;

·      Continued softness in some residential construction and steel
markets.

Efforts to optimise product mix and plant network utilisation represented
about 4% of the overall volume drop. This mainly consisted of lower-priced,
lower-margin construction materials, primarily in the Nordics, Germany, Poland
and the Baltics. In addition, the termination of a low-price, low-margin
emergency supply agreement contributed a further 2% reduction in volumes.

 

 

Synergy delivery

 

The following initiatives underpinned the delivery of a solid H1:

 

·      Commercial synergies, plant utilisation, and mix optimisation
provided a £7-8m contribution;

·      Operational initiatives delivered £5-6m in cost savings,
including a c.6% reduction in headcount;

·      Total net synergy delivery in the period over £13m;

·      Synergies delivery for the year is expected to exceed earlier
guidance of at least £17m assuming steady market conditions.

As a result of the focus on cost and operational synergies EBITDA rose 2%
year-on-year, with pro-forma margins up 70bps.

 

The synergy program continues to demonstrate its success, allowing the Group
to outperform. The operational benefits of the synergy programme are expected
to increase further as volumes return to more typical levels.

 

Cash generation remained strong, demonstrating the resilience of the business
and its operating model, with leverage reduced to 2x.

 

 

Segment performance

 

·      Industrial minerals markets (32% of H1 2025 Group revenues: H1
2024 35%): The segment remained generally soft, with steel impacted by
customer-specific maintenance shutdowns;

 

·      Environmental and agriculture markets (23% of H1 2025 Group
revenues: H1 2024 21%): Good demand in water purification and flue gas
treatment was partially offset by a delayed start of the agricultural season;

 

·      Construction markets (45% of H1 2025 Group revenues: H1 2024
44%):  Infrastructure demand was stable, with the residential side remaining
subdued. While building permit approvals increased in some regions, markets
such as the UK, Scandinavia and Germany show no clear recovery yet.

 

 

Outlook

 

As outlined at the May 2025 Capital Markets Day, management remains confident
that recovery in construction and steel markets, alongside the German
infrastructure stimulus, will reverse current volume weakness. We do not
expect market sentiment to improve markedly before the end of the year.

 

In the meantime, synergies, price and mix optimisation, as well as strict cost
control continue to protect margins and support strong cash generation.
Full-year synergy delivery is now expected to be ahead of previously indicated
guidance.

 

With the business seasonally weighted to the second half and with the
continued focus on synergies, the Board remains confident in delivering
full-year results in line with consensus expectations.(3)

 

 

Max Vermorken, CEO of SigmaRoc, commented:

 

"The Group has performed well, delivering solid results against a challenging
backdrop. Market recovery - whether from German stimulus or improved sentiment
- has yet to materialise, particularly in residential construction. Weather
disruptions and customer shutdowns have kept volume trends broadly unchanged
from Q1, with additional customer specific challenges also impacting
performance. Strong regional performance in the UK, Ireland, the Nordics, and
Poland are encouraging, while Germany remains subdued.

 

Following a robust first half, we enter our seasonally stronger half with
cautious optimism. We remain focused on driving forward our strategic
priorities, supported by improvements in market conditions."

 

 

Notice of interim results - Analyst briefing & investor presentation

SigmaRoc will announce its results for H1 on Monday, 8 September 2025.

Analyst briefing

SigmaRoc will host an online briefing for analysts on Monday, 8 September at
08:30 GMT. For more details and to register to attend please email
ir@sigmaroc.com (mailto:ir@sigmaroc.com) .

Investor presentation

SigmaRoc is pleased to announce that its Executive team will provide a live
presentation to private investors reviewing H1 results and prospects via
Investor Meet Company on Monday, 8 September at 14.00 GMT.

The presentation is open to all existing and potential shareholders. Questions
can be submitted before the event via your Investor Meet Company dashboard up
until 9.00am the day before the meeting or at any time during the live
presentation. Investors can sign up to Investor Meet Company for free and add
to meet SigmaRoc via:

https://www.investormeetcompany.com/sigmaroc-plc/register-investor

Investors who already follow SigmaRoc on the Investor Meet Company platform
will automatically be invited.

Notes: (1) Based on underlying EBITDA and EPS; (2) From continuing operations;
(3) 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 £1,072m, underlying EBITDA of £251m and EPS of 9.1p; (4)
Pro-forma calculation includes all continuing operations in full for 2024 and
2025.

 

Information on the Company is available on its website, 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 plc:

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.

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