Sigmaroc Share Discussion Threads

[rimau1] 04/1/2022 07:45

This is a really nice example of the significant benefits of the c.£70m of annual FCF that the enlarged Sigmaroc is now generating. It can fund 2 of these immediately earnings enhancing acquisitions each year just from FCF and given the highly fragmented European market there are plenty out there.

[masurenguy] 04/1/2022 07:10

Looks like a good aquisition "which will be immediately enhancing to SigmaRoc's underlying earnings"

Acquisition of Johnston Quarry Group

SigmaRoc is pleased to announce the acquisition of Johnston Quarry Group Limited ('JQG') and Guiting Quarry Limited for an initial cash consideration of £35.5m (the 'Acquisition') from Nicholas Johnston, Giantflow Limited and Flowgiant Limited (the 'Sellers'). JQG is a specialist quarried materials supplier producing construction aggregates and premium quality building stone, as well as agricultural lime for soil improvement. Its aggregate products are typically used in infrastructure projects, with its unique Cotswolds Ironstone and Bath Stone used in specified high end housing applications. The business operates eight quarries and two separate processing sites located across the South West, Oxfordshire and Lincolnshire. JQG has access to 86m tonnes of freehold and leasehold reserves and resources giving JQG an average life of mine of over 40 years.

For the 12 months to 30 September 2021, JQG reported revenue of £14.7m, generating EBITDA of £5.9m and £3.6m profit before tax. As at 30 September 2021, JQG had gross assets of £22.1m and net assets of £6.9m primarily in land, mineral reserves and plant and machines. The Acquisition, which will be immediately enhancing to SigmaRoc's underlying earnings, is expected to complete in the next few weeks, following the satisfaction of certain completion conditions. On completion of the Acquisition, Nicholas Johnston, JQG's founder, will remain available in an advisory capacity as required for smooth integration. The Acquisition consideration will be funded from the Group's existing resources, including the assumption of up to £6m of JQG's long term debt and up to £3.6m in plant hire contracts.

Max Vermorken, CEO of SigmaRoc, commented: "JQG is high quality quarrying group, with an attractive geographic footprint and a product range which offers both architectural and environmental benefits over alternatives. The Acquisition extends our footprint significantly in several key markets within the UK, while offering the opportunity for further improvement and platform based synergies."

[yasrub] 23/12/2021 14:46

I have a bought a few, the recent weakness does give potentially a good entry point based on the actual reporting from SRC - hopefully well timed !

[masurenguy] 23/12/2021 14:21

I've added at 83p today. The shareprice has declined by 25% over the past 3 months despite two good trading updates in October and December. This decline just reflects the general AIM malaise over the past few months and does not relate to SRCs trading performance, valuation metric or 2022 prospects.

[sundance 13] 20/12/2021 14:13

Yes would like to see some evidence of price bottoming & not continuing its drift lower before topping up.

[twirl] 20/12/2021 11:43

Its the market.

It does provide opportunity to buy lower - but will the market drag it lower?

Current market sentiment is deterring me from adding. Will review in new year.

[arregius] 20/12/2021 08:19

Investors didnt read trading update? Lol

[masurenguy] 17/12/2021 08:18

You should be happy about that - another chance to add to your holding at a bargain price!

[sundance 13] 17/12/2021 08:09

And down today again!

[jaf111] 16/12/2021 15:48

Chart or no chart frankly I find Mr Market's response to the TU ridiculous.....today's small increase not even recovering the falls from the previous day despite the strong / in excess of market expectations TU....

Shares are down 25% or so from their highs at the end of Sept so I am more than happy to take advantage of this opportunity.

[sphere25] 16/12/2021 14:22

Interesting.

Ok so it's a decent chunk off the highs (but not an outright clobbering like others), good statement, starting to look more and more like some value being offered, but the chart is still in a downtrend. There is still a seller in size at work here so it might need to go abit lower before it finds a firmer bottom.

Unless some massive clear out happens in the near term, not the type of chart I want to buy just yet, but interested enough to stick it on the monitor trying to time the opportune moment.


All imo
DYOR

[se81] 16/12/2021 12:24

Liberum

SigmaRoc’s trading update for the 11 months to November reports that revenues have run ahead of our estimate, and with material cost pressures successfully passed through, management has confidence that it will beat consensus expectations for 2021 EBITDA. Management has also reported good progress in integrating Nordkalk and an accelerating roll-out in Greenbloc. The shares have underperformed the wider sector for no fundamental reason and offer very good value here at under 13x 2022E PER. This looks especially appealing as reinvesting free cash flow could drive 19% p.a. earnings growth.

We find valuation compelling at this level. We estimate that the shares trade at under 13x December 2022 PER and under 8x EV/EBITDA compared to multiples of 18.0x December 2022 PER and 9.7x EV/EBITDA before the Nordkalk transaction. A PER multiple of under 13x is especially interesting as SigmaRoc has the potential to grow earnings at around 19% p.a. on our calculations if cash flows can be successfully redeployed, with leverage maintained.

Looks too cheap at current levels

[arregius] 16/12/2021 07:33

Today ajajaj

[masurenguy] 16/12/2021 07:23

Great update !

Update on Trading and Greenbloc

SigmaRoc (AIM: SRC), the AIM quoted buy-and-build construction materials group, is pleased to update the market on its performance for the 11 months to 30 November 2021 (the 'period').

Trading Update

- Group revenues for the period were GBP236.5m, up 107% over the prior year.

- Like-for-like revenues increased 13.4% year-on-year in the period, including like-for-like growth of 9% against a strong comparative period in H2.

- Cost inflation continues to be effectively managed, supported by contractual pass through.
- Product availability has remained good, in spite of supply chain challenges.

The Group has traded well through the period, with sustained demand maintained in all key end market and customer segments. The outlook for residential and infrastructure construction remains very encouraging across the Group's UK and Northern European markets, with demand for higher grade materials for pulp, board, steel, environmental and chemical applications also supported by structural growth drivers. As a result of the continued solid trading, the Board remains confident in the Company delivering an underlying EBITDA performance for the full year ahead of analyst consensus.

The business is carrying good momentum into the year end, which should support further organic progress in 2022. In addition, there are a number of active initiatives currently in process, supported by the Group's strong cash generation, which have the potential to further accelerate growth and strategic development of the business.

Nordkalk integration

Since completing the acquisition of Nordkalk on 31 August 2021, work to integrate the Nordkalk business within SigmaRoc's platform setup has progressed well. A series of eight integration initiatives have been completed or are ongoing, covering reporting, finance, IT, governance, safety, trading, production and investment. The integration process has engendered a strong collaborative approach between Nordkalk and SigmaRoc, which is already identifying potential incremental value opportunities from the combination. Several workstreams on product development and investment initiatives are underway, with the aim to increase materials utilisation within various Nordkalk quarries.

Updates on Greenbloc

The Group is also pleased to announce several key developments for Greenbloc, its ultra-low carbon concrete products line. The Group has significantly expanded the channel base for its Greenbloc products, which are now available through a number of merchants and buying groups across the UK, including Travis Perkins, Jewson, Buildbase, Huws Gray, MKM, EH Smith, H&B and Fortis. The Group is also currently working with several major contractors on significant commercial and infrastructure projects. As of January 2022, the Group will offer Greenbloc technology across its concrete products business, becoming the first concrete products supplier in Europe to offer ultra-low carbon concrete products across its entire range.

Max Vermorken, CEO of SigmaRoc, commented:"I am very pleased we can end a very busy year on such a positive note. The Group is trading well, we have a large number of projects and initiatives in the pipeline, our Greenbloc products are gaining more and more attention and our board is set to gain a very talented new member. 2022 is expected to bring further development of the Group as we build on the six platforms across the UK and Northern Europe."

[sundance 13] 16/12/2021 07:20

Excellent update.

[hsduk101] 15/12/2021 16:47

Any idea when the next expected trading announcement is likely to be?

Hopefully the nitwits in the accounting department will give us some actual figures this time!

[twells1] 15/12/2021 15:55

I do not understand the share price movement. Now substantially cheaper than placing price. The sellers are locked in so cannot sell and the broker suggest the price should be 50% higher. The results were v good

Why?

[sundance 13] 15/12/2021 15:14

Looks like a large holder reducing, some big sells going through at 79p today.

[farnesbarnes] 15/12/2021 14:48

fluctuations

[arregius] 15/12/2021 14:14

Whats going on here

[wanttowin] 29/11/2021 09:37

I've added a few at the placing price, it seems a good opportunity..

Happy to hold these long term, the building trade is not really affected by all this Covid stuff.

[arregius] 26/11/2021 07:39

New variant NU is coming.This company showed me how well prepared is to navigate this environments.Happy to hold many years