Sigmaroc Share Discussion Threads

[basem1] 09/12/2020 08:31

Phenomenal company this Some BOD would have said 50p but these guys got the extra penny Seems like they are like that in the boardroom too Soon be at 90p here

[masurenguy] 09/12/2020 08:24

It is very positive to see some strong demand this morning with investors already paying a 6% premium over the announced placing price !

[jaf111] 09/12/2020 08:17

ANOTHER excellent update....no real justification for such a low rating so woud expect this to move considerably higer in coming days / weeks.

[masurenguy] 09/12/2020 07:37

Main Points.

Proposed Placing

To raise approximately £12.4m to accelerate near term acquisition and investment pipeline. The Placing will raise gross proceeds of approximately £12.4m through the issue of 24,312,737 new Ordinary Shares, each at a price of 51p which represents a discount of approximately 3.3% to the closing price of 52.75p pence per Ordinary Share on 8 December 2020

Despite the challenging environment presented by COVID-19, the Group has continued to perform strongly; recovering swiftly to like-for-like growth from May, and remains on track to deliver record results for 2020. Having established a firm operational platform to manage risks posed by the pandemic, the Group has developed an investment pipeline of bolt-on acquisition and small expansion investment opportunities.

The net proceeds of the Placing will be used by the Company to accelerate its strategic development by executing on opportunities from within this pipeline, which meet its strict investment criteria, in the near term. The Placing Shares represent approximately 9.6% of the Company's existing issued share capital and are being issued pursuant to its existing issuance authorities. It is the intention of certain Directors and senior management to participate in the Placing up to an aggregate amount of £190,760.

Trading update

SigmaRoc has today separately announced a trading update for the period ended 30 November 2020. Whilst the COVID-19 pandemic has resulted in a challenging trading environment, pleasingly the recovery to more normal activities has been quick and as a result, the Group currently expects to deliver results for the year ending 31 December 2020 ahead of current market expectations. The Group is in advanced negotiations with its syndicate of lending banks, and expects to complete a new Group-wide credit facility to replace its existing facilities in the UK and Belgium, ahead of the year end. A further announcement will be made as appropriate.

[basem1] 09/12/2020 07:31

Yes my heart sank and then I saw 51p Great and explains the recent weakness in price All looking tres exceptionales here

[speny] 09/12/2020 07:30

Results ahead of expectations, placing to help accelerate expansion plans, all looks great to me!

[masurenguy] 08/12/2020 12:47

Liberum target price in their September note was 60p.

[basem1] 08/12/2020 11:59

Next leg up starting Sellers seemed to have dried up again

[haywards26] 24/11/2020 12:15

Plenty more to come in my opinion. I see £1 here within a 12-18 month period.

Lots of infrastructure investments and projects to start rolling in 2021 onwards.

SRC surely ticks all the investment boxes, can't really think of anything not to like :)

[arregius] 18/11/2020 15:13

And read through from breedon trading update which Is ahead

[speny] 18/11/2020 14:59

Thats interesting Michael Taylor from IC has written about them, they are also in Simon Thompson's small cap list of stocks. Thats how I came to first hear about SRC, doubt I would had come across them otherwise, as they don't score very high on stockopedia using their metrics for rating stocks.

[mathewawood] 18/11/2020 14:07

Price action due to tip in IC. Usual drift after I expect.

[speny] 18/11/2020 13:41

Great to see we have taken out previous highs for the past few years, plenty of growth potential here. Not sure whether the plan is for further acquisitions, if not it won't take long to pay down the debt, which means they'll likely start paying a dividend at some stage.

It won't be long before they start attracting greater attention soon.

[greg the grinch] 18/11/2020 13:37

it was the sittin and waitin............. :o)

[skyship] 18/11/2020 13:35

Citywire comment boosts this one today...

[masurenguy] 18/11/2020 08:06

Yes - the key comments that should also apply to SRC were:
"The improving trends reported in our most recent trading update in September continued into the fourth quarter, with Group revenues in both September and October ahead of the same period in the prior year, on a like-for-like basis. With forecasters expecting a further recovery in construction activity in GB and Ireland in 2021 and the UK and Irish governments making significant commitments to infrastructure spending, the outlook for our markets remains encouraging."

[mfhmfh] 18/11/2020 07:47

BREE today reporting improving conditions in the market

[basem1] 05/11/2020 09:37

Cannot be many sellers left now you would think. The price has held up well considering it has been relentless selling over the last monthCan see a pop to the upside coming with some buying volume

[basem1] 24/9/2020 10:37

Or may fall

[basem1] 24/9/2020 10:37

Could the market be looking ahead to next year when construction activity could fall ?

[mfhmfh] 10/9/2020 10:39

RNS from BREE today:

'...will require the divestment of a small number of ready-mixed concrete plants and an asphalt plant in England, and two quarries and a cement terminal in Scotland.'

perhaps options for SRC to acquire.

[18bt] 10/9/2020 10:26

Good management presentation on the InvestorMeetCompany.

One interesting point is that GDH was highly geared with expensive HP and lease debt. This will be refinanced later this year resulting in interest savings.

Interesting detail on how they managed through COVID - impressive.

Planning approval processes are "jumbled up" so visibility of projects is still problematic. And that is why they were so prudent in their outlook statement earlier in the year and are still cautious.

Peter Tom's investment is passive and he has no active involvement.

Question on M&A: interest would be N Germany, possible N France, Scandinavia.

Max was very impressive and would recommend a watch - it should be recorded.

[pastybap] 08/9/2020 13:05

You shouldn't be posting the full write up here. That's what people pay their subscriptions for.

[dros1] 08/9/2020 12:33

Simon Thompson
SigmaRoc (SRC:51p), a company pursuing a buy-and-build strategy in the heavy building materials sector, is navigating the Covid-19 crisis far better than analysts had predicted, prompting a round of earnings upgrades following a robust set of interim results. I flagged up the potential for upgrades when I last suggested buying the shares, at 41p (‘Targeting value plays’, 3 August 2020).

Acquisitions helped boost first-half revenue by 83 per cent to £54.5m, but the key for me was that like-for-like revenue matched the prior year and on higher profit margins, too, despite Covid-19 disruption. Importantly, the recovery is gathering pace in some areas. For instance, Poundfield, a maker of pre-cast concrete products, reported record revenue in both May and June, and CCP Building Products, a supplier of concrete blocks and aggregates, has seen demand return to normal levels. Analysts at brokerage Peel Hunt have taken note, upgrading their full-year pre-tax profit and EPS estimates by 42 per cent to £10m and 3.3p, respectively.

The acquisition of the outstanding 60 per cent interest in South Wales quarrying group G.D. Harries (GDH) is a smart move. SigmaRoc can implement operational improvements by using its quarry management and concrete expertise, source lower cost materials (especially cement), and expand the customer base eastwards towards Cardiff. Consolidation in local asphalt production looks set to continue into aggregates, thus offering scope for improved profitability within the industry. GD Harries controls around 14 per cent of asphalt production in South Wales.

SigmaRoc has bought out GDH for an enterprise valuation of £26.5m, equating to a reasonable 7.6 times annual cash profit. Factoring in GDH’s contribution, and the stronger recovery, Peel Hunt upgraded its 2021 pre-tax profit and EPS estimates by 7 per cent to £15.5m and 5p, respectively. On this basis, the shares are priced on an undemanding forward PE ratio of 10, prompting me to tweak my target from 60p to 65p, having first suggested buying, at 46p (Alpha Report: ‘A General Election winner’, 12 December 2019). Buy.