Sigmaroc Share Discussion Threads

[bagpuss67] 27/3/2023 07:13

Excellent.

[masurenguy] 27/3/2023 07:07

Great set of results !

Audited full year results for year ended 31 December 2022

SigmaRoc is pleased to announce its audited results for the year ended 31 December 2022.

Record results, earnings enhancing acquisitions underpinned by organic growth

- Another year of strong delivery, with full year results ahead of original expectations 6

- Organic LFL revenue grew by 19% and Underlying EBITDA by 9%

- Underlying EPS increased by 49% YoY

- Ongoing focus on efficiency, with GBP5m of annualised EBITDA improvement initiatives delivered across the Group

- Strong cash generation with GBP54m Free Cash Flow and 87% Cash Conversion Ratio supporting investment in bolt-on acquisitions and investment for organic growth

- Adjusted Leverage Ratio comfortably below 2x target, despite continued growth investment

- ROIC increased 310bps to 10.7%, with clear path to medium term target of 15%

Max Vermorken, CEO, commented: "2022 was an extremely challenging year from an operational and a commercial standpoint. However, the Group delivered performance well ahead of expectations and made enormous strategic progress, demonstrating the strength of our operational model and management structure. This exceptional year has given us the opportunity to get on the front foot strategically at the start of 2023 with a robust pipeline of organic and acquisition investments to support our organic growth and accelerate our strategic goals. We remain vigilant towards continued variable conditions across our end markets, but we are confident that the Group can once again demonstrate its resilience and achieve further strategic progress in 2023."

[elbrus55] 16/3/2023 03:12

If pointing out a simple spelling error I agree the comment would be pedantic. Hower, decarbonation is a process used by some mines to treat run off water, so it is conceivable that is what was meant. More likely, it is just a typo which you corrected in your message.Either way, it doesn't make much difference from an investment perspective.

[twirl] 15/3/2023 16:36

You appear to be a nit picker elbruss. Hopefully its just your BB persona and you are not really such.

[elbrus55] 15/3/2023 16:06

He actually said 'decarbonation' which is something else, but I guess he meant 'decarbonisation'.

[twirl] 15/3/2023 09:40

I like the statement that the funds will be used inter alia to fast track decarbonisation operations - presumably in Sweden. Maybe dissuades the appeal voices.

[altom] 15/3/2023 08:24

Max seems a very shrewd CEO. No time wasted, as you say.
I hate HS2 but it may be good for SRC.

[thelongandtheshortandthetall] 15/3/2023 08:05

^^Great news!!

[alter ego] 15/3/2023 07:38

"SigmaRoc (AIM: SRC), the quarried materials group, announces that it has been successful in its claim to seek compensation from the Swedish state in respect of land use restrictions."

subject to possibility of an appeal by 4 April but worth £17m plus interest.

[rimau1] 10/3/2023 08:51

Buying growth at 5x - 6x ebita in highly synergistic acquisitions

[thelongandtheshortandthetall] 10/3/2023 08:09

Great.
SigmaRock putting the money to work asap!

[masurenguy] 10/3/2023 07:46

Update and Notice of Results

SigmaRoc (AIM: SRC), the quarried materials group is pleased to provide an update. Good initial progress has been made in executing the identified transactions, with the completion of two acquisitions, for an aggregate consideration of £12m. In addition, the Group continues to trade in line with expectations, benefitting from its broad European and end market spread, and continued gains from productivity improvements across the regional platforms. Initial investment has also been made in identified organic development projects.

Acquisition of Goijens Concrete Group

The Group has completed the acquisition of Goijens, a leading supplier of ready-mixed concrete and pumping solutions, located in the north east of Belgium. The acquisition was closed at an effective multiple of 5 times recurring average EBITDA for the years 2020 to 2022, before expected synergies and operational improvements. Goijens, which generated £16m revenue in 2021, operates two concrete plants and concrete recycling facilities , as well as pumping and other services. It s footprint, which is located in the n orth east of Belgium is highly complementary to SigmaRoc's Benelux platform, which will enable commercial and operational synergies, as well as a swift integration into the Group.

Acquisition of Juuan Dolomiittikalkki

The Group has also completed the acquisition of Juuan Dolomiittikalkki ('JD') in Finland for an effective multiple of 6 times recurring average EBITDA for the years 2020 to 2022, pre-synergies and operational improvements. JD is a specialist supplier of high quality dolomitic limestone, used in the Agricultural and Environmental sectors to improve regulation of soil pH and water retention. JD's operations are located close to the Group's existing Finnish business and represent a valuable extension into dolomitic limestone. JD adds approximately 1.5m tonnes of reserves, equating to roughly 30 years of operating life and EUR1.5m of revenues to the Group. The existing management team will continue to operate and grow JD as it is integrated into Nordkalk's Nordics platform.

Organic development projects

Significant progress has also been made across the Group's organic development projects, with required infrastructure and equipment orders placed. The Nordkalk platform has now taken into use its first fully electric heavy goods vehicle for the transport of aggregates between production and port operations in Norway.

The Group will publish its FY22 accounts and annual report on 27 March 2023.

[haywards26] 06/3/2023 17:12

He obviously is obviously very positive in the upcoming acquisitions that the fund raise was for! 😀

[thelongandtheshortandthetall] 06/3/2023 08:34

Yes. that's a good showing of confidence.

[altom] 06/3/2023 08:22

Head of M&A spends £182k. Pretty strong positive signal to me !

[masurenguy] 06/3/2023 07:07

On 3 March, Emmanuel Maes, West MD & Group Head of M&A, purchased 320,301 shares @ 56.8p.

[greg the grinch] 28/2/2023 12:03

Hmmm... does the upward share price movement suggest they could have got the placing away at a higher price?

Let's be honest, we're all here because we think SRC is currently worth at least 1 pound if not a bit more. Also, medium-term I expect we think the share price should hit £1.50 to £2. I suspect the institutional investors will have exactly the same thoughts.

I maintain they could have got the placing away at a higher price. A two-hour buying window for retail investors was unreasonably tight.

Anyway, onwards and upwards.

We don't all have to agree.

[elbrus55] 25/2/2023 07:17

He may not meet the eligibility conditions e.g. country of residence

[alter ego] 24/2/2023 13:43

"Paul Gustavsson, CEO Nordkalk, purchased 27,500 ordinary shares of 1 pence each in the capital of the Company ('Ordinary Shares') at a price of 57.797 pence per share. Following this purchase, Mr Gustavsson's total interest in the Company is 100,500 Ordinary Shares, representing 0.0157% of the total voting rights of the Company."

Wonder why he didn't buy these in the placing.

[alter ego] 24/2/2023 09:15

Got all the stock I asked for despite tight timetable. Better to raise cash in the market than saddle the company with more debt. Eager to see what they do with the funds raised.

[elbrus55] 24/2/2023 08:58

It was announced in the RNS at the end of January. They use slightly vague wording but the implication is well understood. I commented on it at the time The capital raise is pretty standard and the discount , say, 8 to 10% is fairly normal for a small, non-distressed company. It was quite a small raise of 30m pounds so any dilution is pretty minimal. You could have bought in the open market just before placing at 54p so not sure what your concern is.They could have tried at a higher placing price but at a higher price they would risk failing to get 30m of subscriptions and that would mean the company would have difficulty making the acquisitions it is planning and also general loss of confidence.

[greg the grinch] 23/2/2023 10:46

Utter c*nts. No problem with a placing but this should have been at a higher price.

Explains the recent drop - I wonder if placing leaked to II's that were buying in the market. Buying stops, therfore a drop and bingo the insiders get their shares on the cheap.

They could have done it on a VWAP for the last 10 days........ but no....c*nts.

[arregius] 23/2/2023 10:26

Usually src gets most of its cashflow in h2. I guess the management couldnt let go the opportunities they were having in front pf them now and hence the placing.

[bigboyblue] 23/2/2023 09:53

Based on past performance I would agree. They don't have a habit of making dud acquisitions and I expect to see the share price progressing as and when the new ones are announced.

[rimau1] 23/2/2023 09:43

Clocktower, the acquisitions are earnings accretive in year 1, relatively cheap on an earnings basis and the placing was at no discount to the market price so it would always be viewed positively by Mr Market. Excellent raise by a strong mgt team IMO taking advantage of a highly fragmented market to pick up some bargains.