Sigmaroc Share Discussion Threads

[konkel] 06/4/2020 08:13

Liberum have downgraded unsurprisingly but still have 60p TP.

[18bt] 06/4/2020 08:05

Remarkably positive. There are advantages to operating in the Channel Islands, but surprised about Belgium.

[masurenguy] 06/4/2020 07:49

Positive update !

Q1 2020 trading momentum a continuation of strong H2 2019 performance and ahead of analyst estimates

For the first quarter of 2020, SigmaRoc has performed ahead of budget and analyst estimates, despite significant weather disruption and flooding across the UK and the Channel Islands, and the start of the Covid-19 pandemic. For the quarter, the Group recorded unaudited revenues of GBP26.5m, an 87% year-on-year increase, and unaudited underlying EBITDA of GBP5.25m, representing a 144% year-on-year increase.

This performance is a continuation of the trend set in the second half of 2019, where the Group made further progress with the rollout of its strategy. As a result, the Group was able to generate sufficient cash from operations to cover both its non-underlying acquisition and restructuring expenses of GBP3.9m relating to the purchase and integration of four businesses in 2019, whilst also reducing gross debt by EUR2m in its Benelux operations.

Operational update for Q2 2020

Further to the Company's announcement of 25 March 2020, the Group has decided to remain active across its operations where it can ensure compliance with all applicable government welfare guidelines and where there is a clear strategic and financial case in the local market. As required by local government instructions, the Group has had to close all but essential infrastructure maintenance operations, in both Guernsey and Jersey, for a period of 14 days. It is expected that permitting system will be implemented in Jersey shortly, which will allow the reopening of accredited construction sites and in turn the Group's operations.

In the UK, the Group remains active across all sites supplying product where doing so is an economically viable proposition for its customers. In this context, the Group has decided to suspend some of its production capacity and supply from stock. In Wales, G.D Harries remains active across a number of civil engineering and road maintenance contracts, having reduced production and haulage capacity in-line with current local demand.

The Group's Belgian businesses also remain operational with the support of staff and unions, supplying bluestone to a reduced number of active customers. The Group's partner in the sale of aggregates from its Soignies quarry has decided to close its production entirely until further notice. However, the Group continues to supply customers from its other aggregate quarries near the town of Huy.

FY 2020 guidance

In light of the operational picture provided above, the Group anticipates that reduced activity and demand levels in the month of April and possibly the month of May, will result in substantially reduced revenue and EBITDA performance in the second quarter, relative to the Group's expectations prior to the onset of the Covid-19 pandemic. The Group is confident that it has robust business continuity and cost mitigation plans, however, given the very high level of uncertainty presented by current events, it does not believe it is possible to provide accurate guidance to the market for the current financial year at this time.

The Group benefits from both a diverse regional market base and operational footprint, with experienced local management teams. Continuity plans have been implemented swiftly, to ensure the business can remain operational where end market demand continues to require our support. SigmaRoc has a tightly controlled cost base in any event and actions have, and will continue to be taken, to conserve cash further as appropriate. As at 3 April 2020, the Group had GBP11m in cash reserves and undrawn headroom of GBP5m under its RCF facilities, providing a solid liquidity position from which to navigate through even a protracted period of disruption. As such, the Board is confident that the Group remains in a strong position to confront the currently foreseen consequences of the Covid-19 pandemic and respond quickly as markets recover.

The Group will provide further updates on its progress with the release of its FY2019 results scheduled for 20 April 2020.

[konkel] 03/4/2020 16:54

Here's the summary:

Scope to withstand very long lock-down
BUY
Target price 65p | Published price 25.5p | *Corporate Broking Client of Liberum
SigmaRoc’s shares have fallen by 49% since 21 February. We think this is an over-reaction as the market has underestimated the financial strength of the group and its liquidity position. We estimate that the group can withstand a 20% fall in revenues without debt increasing or without needing to draw down more of its facilities, and we also calculate that the group has cash resources and facility headroom in place to withstand around nine months of closure, using Belgian government support schemes to furlough workers. This suggests to us that SigmaRoc can withstand a very extended period of lockdown.

[zcaprd7] 03/4/2020 15:40

I'd like a copy, or at least a summary please?

[arregius] 25/3/2020 12:30

Can anybody email me the liberum note to [e-mail]? It will be just for meThanks!

[mfhmfh] 25/3/2020 12:18

Liberim Capital today reiterates buy rating and 65p target price.

[mfhmfh] 25/3/2020 11:25

management executing their plan well:

'The Company is pleased to announce that it expects to report a strong performance from its businesses for the financial year ending 31 December 2019, exceeding analyst estimates...'

nothing anyone can do about Covid-19.

long-term hold.

All IMHO.

[masurenguy] 25/3/2020 10:55

Agreed - although I'm sitting on my hands with circa 50% in cash, I've made an exception here and taken a modest opening position this morning.

[arregius] 25/3/2020 09:18

Decent update today!

[dekle] 11/3/2020 09:45

Yes, I'm thinking there could be a boost in concrete needing projects. Also I'm expecting investment in research for a vaccine for the virus.

[mfhmfh] 11/3/2020 09:23

good results from BREE.

hopefully will reflect well on SRC.

£600bn of infrastructure spending to be announced in today's budget.

[zcaprd7] 10/3/2020 09:24

And again, tempted to stock up here at some point...

[zcaprd7] 03/3/2020 11:59

Nicely coordinated director buys...

[zcaprd7] 17/2/2020 22:03

https://www.huffingtonpost.co.uk/entry/brexit-m20-transport-traffic-barrier_uk_5e4a97efc5b64d860fcde3b9I wonder if the sigma road zipper system is in the running?

[zcaprd7] 16/2/2020 15:26

Nice chart...

[mfhmfh] 21/1/2020 11:56

Liberium Capital today reiterates buy rating and 65p target price.

now waiting for the year end trading update.

[konkel] 10/1/2020 08:14

Took the top off yesterday.

[zcaprd7] 09/1/2020 17:52

Sig numbers a bit of a worry?

[zcaprd7] 02/1/2020 13:59

To be fair, they are onboarding the new Neds, lets hope they can deliver...

[18bt] 02/1/2020 11:59

So they are happy to buy at 50p; pretty outrageous then that the options were at 46p.

[zcaprd7] 02/1/2020 11:24

Agreed, the exercise price should have at least been 50p, as should the placing really...

[mfhmfh] 02/1/2020 10:51

x 3 director buys