Sigmaroc Share Discussion Threads

[tole] 19/12/2022 18:20

https://masterinvestor.co.uk/equities/market-comment-and-a-small-cap-catch-up/SigmaRoc (LON:SRC) – Big Appeal at This PriceAfter last Monday's Trading Update from the quarried materials group, analyst Charlie Campbell at Liberum Capital eased back his price objective for the group's shares from 130p to 120p.Even so, at Friday night's closing level of 54p that still offers massive upside, with group expectations of being 10% higher than market estimates.For the year to the end of this month he suggests group sales of £580m (£530m) and almost stand still pre-tax profits of £60.1m (£61.6m), worth 6.8p (7.1p) earnings per share.His expectations are for an advance next year to £64.5m profits on similar sales of £579m, worth 7.3p a share in earnings.That price aim presents a big upward possibility – so even going halfway to 87p gives big appeal.

[tonytyke2] 13/12/2022 13:11

Your right alter ego, but don't get me going on the wide spreads on smaller shares!. another of my annoyances.

[alter ego] 13/12/2022 13:03

I agree. One of the biggest issues is that the quoted spread on smaller stocks is often ridiculously wide compared to prices of actual trades. I have on a number of occasions bought well below the mid price or sold above it. You cannot infer from or rely on supposed buy/sell indicators except on larger stocks which generally have a narrow spread. As an example, look at trades for CER. The quoted spread is 1160-1220. Actual trades are rarely close to these limits - more like between 1180-1210 for most. It's pure guesswork trying to fathom which way the trade has gone. Simplest solution is do a dummy trade and see what you are quoted.

[tonytyke2] 13/12/2022 12:41

Still invested here, but with regards to reported trades, it's one of my annoyances. To have a system in this day and age that you have to guess buy and sell transactions, it is simply not good enough.You then have 1hr reported delayed transactions and overnight delayed reported transactions....etc...etc.... Do you think the Mm's like the system as it is? Unfortunately we all seem to settle for this mediocrity, it appears PI's have little say here. Good luck with your investments.

[alter ego] 13/12/2022 10:29

it's not intentional to confuse people. It happens because trades are not recorded as buys or sells so the only way you can guess is to compare the price with the prevailing quote. If the price paid is less than the mid price, it is assumed to be a sell and vice versa.

[timmy11] 13/12/2022 10:04

correct, its done intentionally to confuse people

[abergele] 13/12/2022 09:09

DYOR
but the 45935 trade in the sells column is looking as a buy to me ,gla
Good RNS yesterday..

[elbrus55] 12/12/2022 17:58

Acquisitions have been financed in the past by discounted equity issues which could be dilutive in the short term. It is a risk. It would seem a bit rude to issue new shares at, say, around 50p level when the last issue was up at 85p. But hopefully the long-term strategy holds up.

[wanttowin] 12/12/2022 13:04

This is a long term holding for me, and I'm really pleased with this update.

Management seem really impressive, revenue up 20% and active acquisition plans in hand.

I'm staying until our bowl is filled...GLA

[cerrito] 12/12/2022 08:23

Good for them to specify their understanding of market expectations.
I see that Liberum have reduced their TP from 130p to 120p.

[masurenguy] 12/12/2022 07:37

A positive update abnd outlook !

Trading update

2022 earnings ahead of market expectations

SigmaRoc is pleased to provide the following update in relation to trading to 30 November 2022 and expectations for the year ending 31 December 2022:

Highlights

- Revenues to 30 November 2022 of GBP498m, up 20% year-on-year on a like-for-like basis;
- Demand conditions have evolved broadly as expected across market segments, with the Group benefitting from its broad end market and geographic diversification;
- Cost pressures managed through dynamic pricing, savings initiatives and performance improvement programmes;
- FY22 underlying EPS expected to be c.10% ahead of the market's expectations.
- FY23 outlook remains unchanged;
- Active pipeline of acquisition and investment opportunities with potential to significantly develop the Group.

Trading summary

For the 11-month period ended 30 November 2022, the Group recorded revenues of £498m, representing a 20% like-for-like increase over the same period in 2021.

Volumes trends for the period from July into December across the Group's markets have been, overall, consistent with those set out in the Q3 trading update on 20 October 2022. Our industrial mineral markets have continued to be resilient, with infrastructure demand remaining above historical levels. While there has been some softening in UK lower end housing and RMI demand, the Group has relatively low exposure to these markets and this has been more than offset by the strong performance of the industrial and infrastructure segments.

Cost management has remained a key focus area for the businesses. Q4 has seen some localised softening in electricity prices, which the Group has capitalised on by maximising production. More recent pressure in energy prices continues to be managed through dynamic pricing and hedging. Wider inflationary cost pressures have been further mitigated by both performance improvement programmes and cost saving initiatives.

FY 2022 Outturn

As a result of the delivery on cost saving and performance improvement programmes, resilient trading and development initiatives, the Group expects to report revenue and EBITDA for the year to 31 December 2022 ahead of consensus estimates, with Underlying EPS expected to be c.10% ahead of expectations. The Group intends to publish its results for the year ended 31 December 2022 at the end of March 2023, followed by its ESG report in April 2023.

Outlook for FY 2023

Visibility into 2023 remains challenging given continued uncertainty around the global economy. Our current expectation is for demand in both the industrial and infrastructure markets to maintain current trends into the early part of 2023, albeit we anticipate some customers will take the opportunity to bring forward seasonal maintenance stops, to coincide with anticipated higher energy prices and the holiday period.

The Group continues to implement highly effective performance improvement programmes, in each of its platforms, which have enhanced throughput and utilisation, improved commercial terms, increased materials reserves, and extended and de-bottle necked capacity. The initiatives which we announced in October 2022 which are expected to realise EBITDA benefits of £5m this year and deliver significant further scope for performance enhancement in 2023 and beyond, are progressing well. The success of these initiatives gives us confidence in our ability to mitigate further inflationary cost pressures.

Notwithstanding the challenging market conditions in the short term, the Board remains very confident in the Group's long term prospects, supported by its proven business model, and the diversification provided by its European and multi-product footprint.

Aqualung update

In November 2022, the Group announced its partnership with Aqualung, and its intention to materially accelerate carbon capture roll-out across its lime kiln network. The Group is pleased to report the first Aqualung carbon capture facility is presently on route to Scandinavia for installation in Q1 2023.

Further development of the Group's footprint

The Group remains as active as ever in the development of its footprint, targeting further value enhancing ideas, both organic and inorganic. Within this pipeline there is the potential to deliver attractive returns, enhance earnings and also decrease leverage. One of the Group's core strengths is its proven ability to drive strategic improvement irrespective of market conditions and the Company expects to update shareholders on progress early in the new year.

[twirl] 08/12/2022 11:32

We may have an 11 month trading update b4 xmas.

There have been such in the last 2 years 9.12.20 and 16.12.21

[wanttowin] 28/11/2022 15:25

Perking up, back to 60 would be nice.

[alter ego] 22/11/2022 07:51

"SigmaRoc plc is pleased to announce that it will install its first carbon capture facility in Q1 2023 with the aim to capture all kiln process emissions by 2030, well ahead of its 2040 Net-Zero targets."

[jacks13] 08/11/2022 11:39

BlackRock have done a round trip back to where they began:

date - holding - %
6 Sep 21 59,830,344 9.38
28 Sep 21 65,135,790 10.21
19 Oct 21 68,707,074 10.77
20 Oct 21 71,428,948 11.19
21 Oct 21 74,904,990 11.74
22 Oct 21 79,554,990 12.47
1 Nov 21 79,518,992 12.46
8 Nov 21 79,476,741 12.45
17 Nov 21 84,126,741 13.18
10 Jan 22 83,169,967 13.03
31 Jan 22 82,943,051 12.99
2 Feb 22 82,943,051 12.99
25 Mar 22 83,034,301 13.00
6 Apr 22 82,795,915 12.97
28 Apr 22 81,791,012 12.81
14 Jul 22 79,712,385 12.48
28 Jul 22 78,784,291 12.34
18 Aug 22 76,978,850 12.06
31 Aug 22 76,495,005 11.98
13 Sep 22 73,979,508 11.59
20 Sep 22 63,707,215 9.98
5 Oct 22 63,837,862 10.00
27 Oct 22 63,092,013 9.88
4 Nov 22 62,050,780 9.72

[masurenguy] 08/11/2022 07:20

Hi tonytyke2, there's your institutional investor - Pershing Securities increased their stake by 20%.

[tonytyke2] 07/11/2022 21:33

Hi Masurenguy, BR have been trimmimg their position slightly all year, I think this is the 12th reduction since January. From 13.18 percent in Jan to 9.72 percent today, but still less than a 3.5 percent reduction in the YTD.

IMO I think there is large investor/institution buying at the moment which is giving this recent momentum.

[masurenguy] 07/11/2022 18:26

Hardly a significant transaction. Blackrock have reduced their holding by just 1.6% !

[sphere25] 07/11/2022 18:25

Ok one more...better clarify.

I didn't mean last post ever on ADVFN, sorry. Getting abit rusty with the multi-tasking if the wording is coming out as badly as that!

I meant last post on the SRC board on this particular topic of the short term move higher and how the exchanges are coming in. Noone wants you to keep banging on about one thing like that, but it can pay to keep a close eye on the order book for anomalous activity.

I don't know if folk are militant order book watchers though. I am that boring! :-)

More posts to come. I will keep posting as long as they aren't miles off the mark. If they do end up that way, outtaaaaa here! Ha

But as always, nothing is meant as advice. Always encourage folk to do their own thing and find whats works for them.

Nice to have some blooming bullish trends for a change. I really wish we were further down the line economy wise though. I would definitely be saying buy the dips in SRC! But overall, it just doesn't look like that time, especially after those Bailey comments on recession.

Oh and BlackRock are farting about trimming and adding. I thought the large clearout in the past might have been them but it wasn't so it doesn't look like they want to sell all the way down or they'd surely have participated in that big volume day a short while back in lobbing in bigger size to buyers in size and the price would never have got this far up in the first place.

Right, onwards!

[wanttowin] 07/11/2022 16:40

Yes, they slipped that in just before the bell.

[clocktower] 07/11/2022 16:21

Black Rock taking advantage of the current strength to reduced their holding I see.