Sigmaroc Share Discussion Threads

[cerrito] 18/10/2023 07:38

At first glance a reassuring TS.
Good for them to spell out market expectations which have an underlying ebitda of £110m for the year. The £55m underlying ebitda in H1 produced an H1 underlying eps of 4p which suggests a very favourable pe at current sub 50p share price.
Interesting to see residential construction 25pc odd sales.
Not in any paper/pulp shares but note pick up in demand.

[alter ego] 04/10/2023 14:51

only just got around to watching the Investormeet presentation given after H1 results on 5 Sept. One point jumped out, the contribution made to Infrastructure revenue by HS2. Probably another reason for recent share price weakness. Overall though, very positive about the outlook given diverse revenue sources and markets. Emphasis on agility to adapt to whatever market demand arises. Also seeing lots of profitable add ons were owners under stress. Well worth a look.

[dunns_river_falls] 07/9/2023 19:12

There is a useful chat on LSE currently that holders might want to take a look at. Trying to arrange a call with CEO if anyone wants to join

[tonytyke2] 07/9/2023 18:56

Yep good day indeed, and it got the volume required to move the share price also. 1.808m today v 702k 3 month average.

[dunns_river_falls] 07/9/2023 18:30

Nice to see a bit of life in the share price But need a close above 65 to break the malaise.

[davidosh] 06/9/2023 14:02

These are the two main execs...

Max Vermorken 827,034 shares so 0.12%

Garth Palmer 671,702 shares so 0.10%

They were remunerated with two million pounds between them in 2022 so putting in significant amounts in each placing would be the least one would hope for to give me confidence.

Just feels very low and not showing as much confidence as they want shareholders to have in a 'buy and build' strategy

[masurenguy] 06/9/2023 12:57

Over the past 6 months two directors, David Barret and Emanual Maes, have purchased 330,000 (£191,400) and 320,301 (£182,571) respectively at an average price of 57.5p.

[davidosh] 06/9/2023 11:25

I find it interesting that all the founders, who are also directors in the main, have so few shares.

They are raising funds regularly and yet the share price is not going anywhere. Is this due to vanity acquisitions that are not delivering earnings growth greater than the dilution or is this just an unloved company that will eventually come good for shareholders and not just the directors?

[dunns_river_falls] 06/9/2023 10:42

Many companies link director renumeration to the share price It does help focus their minds. Although if they keep hitting growth targets and all future small acquisitions are funded from cash flow rather than share issuance, we will be on the right track. We all see the potential or we would not be here. At £1 I shall be much more content.

[goliard] 06/9/2023 08:31

I’m not so sure about that Haywards. The share price is a direct result of the actions of management, their strategy and how they execute it. I would say that they should not focus on the share price, but when you are raising money regularly you need to be cognisant of what the share price is.

[sammu] 05/9/2023 23:33

I don't think the share price trajectory has been a function of their issuance, but is simply a function of the market malaise.

[dunns_river_falls] 05/9/2023 13:37

The company have grown the market cap significantly by issuing more shares at these low prices and dilution has been significant. They keep spending and shareholders have yet to benefit. At some point that becomes an issue. Hopefully the scale of the company will mean that they are now better able to grow without issuing shares like confetti.

[haywards26] 05/9/2023 13:20

Remember management have no control over the share price. Eventually the market has to realise the true value of the group. As long as the acquisitions are earnings enhancing, synergistic, manageable and at reasonable purchase values, then I am personally all for them and the growth of SRC.

[dunns_river_falls] 05/9/2023 12:31

Agree with that goliard. Would much prefer organic growth from here on and only acquisitions funded from cash flow. Share count is x4 since 2018 and share price has done little. Hopefully this is the year value really starts to shine through

[goliard] 05/9/2023 10:25

I've said it before but I wish they would stop expanding for a while and consolidate their business before growing again.

[tonytyke2] 05/9/2023 09:28

Strong resilient performance yet again in this challenging environment, well done SRC! CEO indicating 'traded ahead of expectations'.

[pireric] 05/9/2023 09:07

Large price increases masking over weak volumes. Wait until ever weaker macro conditions force some of these prices rises to unwind, I suspect. Maybe not in all areas (e.g. Blue dimension stone), but maybe in some of the other areas. Many companies are using pricing again in 2023 to maintain cycle-high profit margins through a demand downcycle, and I don't see how this is broadly sustainable in many goods based industries. So in my eyes the volume pain has been deferred (volumes down 3%), not extinguished.

Eric

[masurenguy] 05/9/2023 08:05

Strong H1 with resilient trading, further strategic progress, and full year expectations unchanged

Financial highlights

-- Strong H1, further demonstrating the resilience of the Group's model , together with its continued strategic development;

-- LFL revenue growth of 13%, reflecting effective pricing actions and benefits of diversified market exposure;

-- Underlying LFL EBITDA growth of 12%, with further productivity gains contributing to robust margins;

-- Group volumes fell by 3% but demand remained resilient across key markets with dynamic pricing supporting Net Margin improvement;

-- Underlying EPS increased by 11% YoY, despite finance costs doubling and impact of February fundraise ;

-- Adjusted Leverage Ratio reduced by 0.24x in the Period to 1.69x, comfortably below 2.0x target.

Current outlook - Positive start to second half and full year expectations maintained

-- H2 trading has started well, with continuing robust demand for infrastructure and quicklime products, alongside stabilised conditions in the paper, pulp & board market ;

-- Second half to see further benefit from the integration of recent acquisitions as well as the organic development initiatives as they come on stream;

-- Normal seasonal cash flow profile expected to support further de-levering over the remainder of the year, in the absence of further acquisitions and/or development;

-- The long-term potential remains exciting, with significant opportunities to extend our geographical reach and product offering across a range of markets for high quality construction materials and industrial minerals;

-- While the Board is mindful that trading conditions are likely to remain challenging in several of the Group's markets, the Board expects that the Group's diversified end market exposure, geographic spread, and decentralised operating model will continue to deliver a resilient performance and accordingly the Board's expectations for the full year remain unchanged.

Max Vermorken, CEO, commented: "I am delighted to be sharing these results for the first half of 2023 which show the resilience of SigmaRoc's diversified business and operations, which have traded ahead of expectations. It has been an active period for the Group. We have made continued strategic progress on the M&A front where we have strengthened the Group's footprint with transactions at attractive multiples, alongside a number of organic projects, all of which will contribute to the Group's performance in the second half of the year and beyond. The second half has started well, with resilient demand for infrastructure and quicklime, alongside better conditions in the paper, pulp & board market. Despite a tougher trading environment in some areas of the business, our diversified business model, agile team, and a demonstrated ability to manage prices and costs, has enabled SigmaRoc to deliver another set of robust results. Longer term structural drivers of the business remain positive, and we look forward to the future with optimism."

[clocktower] 05/9/2023 07:19

Great set of figures once again which goes to show what well run business this is, and well undervalued.

[masurenguy] 14/8/2023 01:20

Breedon searches for a ‘Goldilocks’ deal to break through in America

Britain’s leading independent cement and aggregates group is advancing plans to take an ambitious tilt at the American construction materials market. Breedon has broken the hegemony of the 4 big multinationals in the British Isles, CRH, Cemex, Heidelberg and Holcim, through a series of strategic acquisitions. They include buying the country’s largest quarry and cement works at Hope in Derbyshire for £336m. In addition, it has completed the £455m takeover of Lagan in Ireland and a £155m deal for the road surfacing interests of Cemex. Breedon is valued on the stock market at about £1.25bn.

With domestic expansion limited by competition concerns, Rob Wood, Breedon’s chief executive, is planning to shift the group’s ambitions towards the US. Wood said Britain’s five leading players had 75% of the home market; the American market, however, is much more fragmented, with the top ten operators controlling 40%. In Britain Breedon is facing significant decarbonisation investments. Cement production is one of the largest carbon dioxide emitters in industry and Hope, in the heart of the Peak District, is one of the biggest culprits. Breedon has joined other heavy industrial companies in the area to form the Peak Cluster, with plans to abate emissions through carbon capture and storage technology, building a pipeline west through the national park to deposit it under the Irish Sea. The Peak Cluster says the plan has little chance of happening without government support.

Complete article:

[masurenguy] 27/7/2023 08:28

Ref #1554 above.

SigmaRoc (LON:SRC) – Get Really Dug In

Analysts Charlie Campbell and Edward Prest at Liberum Capital rate the shares as a Buy with a price objective of 120p. Their estimates for the full year are for £591m sales (£538m) pre-tax profits of £65.1m (£62.7m), but with earnings fractionally lower at 7.1p (7.8p) per share. The coming year they suggest could see £628m revenues, £72.7m profits and 7.8p earning. At the current 62.20p, just below its recent 64p trading high, I suggest that these shares are undervalued at anything up to 80p.

[davebowler] 26/7/2023 19:19

hTTps://masterinvestor.co.uk/equities/small-cap-catch-up-cnic-gph-and-dwf/?mc_cid=820afaaa6c&mc_eid=31ad53697c

[masurenguy] 24/7/2023 08:35

Trading update

Sustained trading momentum and further strategic progress

SigmaRoc plc, the specialist quarried materials group, is pleased to provide an update on trading for the six months ended 30 June 2023 ('H1' or the 'Period'). The Group expects to announce its interim results in September 2023.

Highlights

-- Strong H1, further demonstrating the resilience of the Group's diversified model;
-- Revenue of GBP290m (H1 2022: GBP247m), up 17% YoY and 13% LFL;
-- Underlying EBITDA of GBP55m (H1 2022: GBP48m), up 15% YoY and 12% LFL;
-- Underlying EPS of 4.0p (H1 2022: 3.6p), up 11% YoY;
-- Good cash generation, with cash of GBP63m (2022: GBP46m) and adjusted leverage ratio of 1.7x (2022: 2.2x) at Period end;

-- Acquisition and investment programme launched in February 2023 now fully committed, with acquisitions expected to contribute c.GBP8m annualised EBITDA at an effective multiple of 3.9 times;

-- Organic growth investments expected to contribute a further c.GBP2m once fully operational, at an effective multiple of 3.3 times;

-- Divestment of four non-core assets generating GBP11m at an effective multiple of 12.9 times (includes land holdings with no earnings impact);

-- Continued success in market leading sustainability initiatives including the Aqualung carbon capture project, and partnership with Materials Evolution for low carbon cement;

-- Diversified market profile positions the Group to deliver full year expectations

[haywards26] 24/7/2023 08:12

Another set of results that highlight the lowly and out of line market rating, given the consistent growth delivered by management..