Sigmaroc Share Discussion Threads

[se81] 20/10/2021 07:46

And some interesting snippets on Greenbloc in the lib note

We also met with Michael Roddy yesterday, the head of SigmaRoc’s Precast Product Group (PPG), who updated us on Greenbloc. This is the first ever cement-free alternative to ordinary Portland cement (OPC) blocks in the UK, and was launched in February 2021.
These blocks can deliver a 78% saving in CO2 emissions. Pricing is settling out at a premium of around 15% compared to ordinary cement blocks.

SigmaRoc announced in June of this year that it would be able to offer an ultra-low carbon option for every product manufactured by PPG from January 2022. Management confirmed that it has already reached this goal and this choice is now fully available.

PPG is in dialogue with 8 out of the 10 top national contractors.PPG now offers cement free or cement versions of its products when it pitches for new work, and management has been positively surprised by the take-up of cement-free material, without quantifying this. Management observed that in the past low carbon products were easy to pitch to ESG directors but less so site managers. The latter are now becoming converts.

[se81] 20/10/2021 07:44

reading between the lines- there are loads of problems at the moment but we've got them under control

Liberum today

SigmaRoc has published a trading update which shows that strong demand trends in H1 continued into Q3, and that input cost pressures and availability challenges are being managed at a local level. We remain confident in our estimates for the group businesses. We make adjustments to forecasts to reflect a slight sterling strengthening and also the timing of the Nordkalk acquisition. Meetings yesterday with Nordkalk and PPG were positive, with the key take-away that Nordkalk is passing on energy costs and Greenbloc is being taken up faster than expected. We continue to see over 20% upside to our unchanged (multiple based) target price of 125p.

[masurenguy] 20/10/2021 07:31

Excellent update to provide reassurance after the recent shareprice 'wobble'. Summary.

Trading

Further to the update provided at the time of its interim results, on 23 August, the Board is pleased to report that the strong trading performance seen during the first half, continued through the third quarter. As a result, the Group generated revenues of £73m in the three months to 30 September 2021. Sustained demand resulted in all platforms delivering Q3 results in line with management's expectations. The integration of Nordkalk into the Group is progressing well, with the business trading as expected through the period.

Outlook

Demand in the third quarter continued the positive trend seen in the first half of the year. In Jersey, planning permission has been granted to allow a large extension to the Ronez quarry, and in South Wales margins are continuing to improve as a result of the ongoing review of efficiencies. Recent and ongoing increases in energy costs are being seen across all industries, and steps have been taken to mitigate these, including the strategic fixing of certain hydrocarbon costs, ongoing business reviews to optimise production and efficiency, price increases where necessary, the sourcing of additional haulage as well as investing in our own heavy goods vehicles and drivers.

The outlook for the Group for the remainder of the year remains positive, with the sustained demand seen across our businesses expected to continue into the fourth quarter. Supply chain and inflationary pressures are being managed effectively, with the benefit of the Group's diversified platform model enabling local market-specific plans to be implemented.

Max Vermorken, CEO commented:"The third quarter has delivered solid results, building on our momentum from the first half of the year. We have delivered a transformational acquisition with Nordkalk and this is already beginning to deliver significant earnings growth and cash generation. The Group is well positioned to continue its strong performance and to develop future opportunities."

[alter ego] 20/10/2021 07:26

Good to read they feel they have these things under control

Supply chain and inflationary pressures are being managed effectively, with the benefit of the Group's diversified platform model enabling local market-specific plans to be implemented.

[tonytyke2] 20/10/2021 07:16

Cracking update, strong quarter performance and positive outlook.

[arregius] 20/10/2021 07:16

Good update today. In spite of the macro difficulties and consolidation of nordkalk, the group delivering.Very high quality company

[arregius] 13/10/2021 07:47

As per brickability update housing seem hoy

[twirl] 12/10/2021 09:32

IMHO the gas price rise will only affect any company if it is unable to pass on the price rise.
This would be the case if end users eg builders could not pass on price rises to house buyers. I would have thought that a housing recession brought on by less affordable mortgages would be a stronger driver which would affect SRC.

However our sales of "rocks and rock products" to govt/councils etc should be unafected IMHO.

The government bale out of the company manufacturing fertiliser was ridiculous as the natural thing for that company would have been to increase fertiliser and CO2 prices.

Of course the govt is in somewhat of a pickle having so much debt that it wishes to suppress interest rates as fed by inflation. The BoE has been desperate to talk down inflation as only a temporary issue. So yet again the advice of the BoE - one can expect the opposite to be the case

[alter ego] 11/10/2021 16:34

Well, obviously it's not helpful but SRC's competitors have the same problem. Sawn timber prices have risen dramatically, over 63% in the last 12 months. Plywood is up 80%. I've heard builders say now it doesn't cost more to build in brick compared to timber so maybe it helps SRC. Aggregates use fuel for transport and I guess crushing using electricity not gas but it's the same for all quarries and there's no substitute in construction work.

The key question is can they pass on the higher costs?

[dekle] 11/10/2021 07:43

With the rising costs of energy, specially gas, what effect will this have on the business?

[wanttowin] 08/10/2021 08:18

Arreglus..yes mate I was just making it easier for others to view, just by clicking on the link...not having to type it in.

[arregius] 08/10/2021 07:38

Thats the same

[wanttowin] 07/10/2021 09:46

Easier this way

[arregius] 07/10/2021 09:38

I am posting this againhttps://www.buildersmerchantsnews.co.uk/Poundfield-opens-new-precast-concrete-facility/51716Read

[wanttowin] 07/10/2021 09:35

The sell off gives us an opportunity imo. I've just been reading through past RNS's and this, taken from the August interims, sticks in my mind as a real positive. Revenue could be massive at the next update.

The acquisition of Nordkalk will be a great stepping stone in the evolution of the Group, expanding our footprint across Northern European markets, and will bring significant earnings growth and cash generation to the Group."

I've added again this morning.

[hsduk101] 06/10/2021 16:20

Think its a bit of an industry wide sell off going on, since the start of September.

Dont think news is making much impact on the current sell off

[arregius] 06/10/2021 14:16

https://www.buildersmerchantsnews.co.uk//Poundfield-opens-new-precast-concrete-facility/51716Company is growing market doesnt know

[wanttowin] 06/10/2021 09:39

I've added another 2000 @ 98p seems a bargain..time will tell

[abergele] 05/10/2021 20:14

If bottoms and tops on a chart are to believed,,we are close now to a lift off.
A ruler across the bottoms show we are there and next step upwards,,so fingers X'd for me on that basis..gl all Lth's

[farnesbarnes] 01/10/2021 14:05

These are the Blackrock trades from 28th Sept:

16:23:17
BSTGBX100p609,682£609,682.00OBUnknowndeleted modified16:23:46 BSTGBX100p600,000£600,000.00OBUnknown11:17:58 BSTGBX102p500,050£510,051.00OBUnknown11:17:45 BSTGBX102p500,000£510,000.00OBUnknowndeleted17:09:27 BSTGBX99.96993p500,000£499,849.65OBSell16:27:21 BSTGBX100p481,816£481,816.00OBUnknown22:08:04 BSTGBP100.07p407,500£407,785.25OBUnknownpublished 29/09/2122:08:04 BSTGBP100.07p407,500£407,785.25OBUnknownpublished 29/09/2116:27:16 BSTGBX100p364,050£364,050.00OBUnknown16:13:06 BSTGBX100p300,000£300,000.00OBUnknown11:36:26 BSTGBX102.102p276,557£282,370.22OBUnknown16:03:59 BSTGBX100p264,000£264,000.00OBUnknown16:16:46 BSTGBX100p250,000£250,000.00OBUnknowndeleted17:10:32 BSTGBX100.1p245,829£246,074.82OBSell16:27:21 BSTGBX100p240,318£240,318.00OBUnknowndeleted11:21:57 BSTGBX102p169,064£172,445.28OBUnknowndeleted16:10:13 BSTGBX100p164,580£164,580.00OBUnknowndeleted16:10:09 BSTGBX100p153,618£153,618.00OBUnknowndeleted16:27:21 BSTGBX100.1p122,355£122,477.35OBUnknown16:08:07 BSTGBX100p107,500£107,500.00OBUnknown16:08:07 BSTGBX100p107,500£107,500.00OBUnknown11:22:09 BSTGBX102p100,000£102,000.00OBUnknown16:18:04 BSTGBX100p100,000£100,000.00OBUnknown16:18:04 BSTGBX100p100,000£100,000.00OBUnknown16:18:47 BSTGBX100p100,000£100,000.00OBUnknown

[tonytyke2] 01/10/2021 09:19

Confident, BlackRock increasing position to more than 10%

[alter ego] 28/9/2021 22:30

I think it all depends on your timeframe. Some folks are looking to trade over a very short period so daily changes in share price are significant to them. I’m very much a long term investor. Years are my timeframe so what happens one week or one month is immaterial so long as the longer term prospects remain intact. SRC are in the very early stages of making a significant company. Unless it shows signs of going awry, I’ll stick with them.

[davr0s] 28/9/2021 19:03

People fine all manner of reasons when it falls back, and all manner of reasons when it's surging up. Trend up firmly in place so I just ignore it all

[otemple3] 28/9/2021 14:20

I think it ran up quite high in expectation of a 'performing ahead' statement, but as you say, energy costs will be having an impact here so this is looking less of a certainty. Quite a few stocks have taken a breather after a good run, so just needs to find a level. Certainly on my watch list to add back soon as it is a well run business