SigmaRoc, the London-headquartered specialist quarried materials group, has posted strong first-half-year trading figures to showcase further the resilience of the buy-and-build business’s diversified model.
Group revenue was £290mn (H1 2022: £247mn), up 17% year-on-year (YoY) and 13% like-for-like (LFL). Underlying EBITDA of £55mn (H1 2022: £48mn) was up 15% YoY and 12% LFL. SigmaRoc’s acquisition and investment programme launched in February 2023 is fully committed, with acquisitions expected to contribute around £8mn annualised EBITDA at an effective multiple of 3.9 times.
Organic growth investments are expected to contribute around £2mn to the Group once fully operational, at an effective multiple of 3.3 times. SigmaRoc finalised the sale of four non-core assets generating £11mn at an effective multiple of 12.9 times (including land holdings with no earnings impact. The Group continued its success in market-leading sustainability initiatives, including the Aqualung carbon capture project and the partnership with Materials Evolution for low-carbon cement.
Group revenue was £290mn (H1 2022: £247mn), up 17% year-on-year (YoY) and 13% like-for-like (LFL). Underlying EBITDA of £55mn (H1 2022: £48mn) was up 15% YoY and 12% LFL. SigmaRoc’s acquisition and investment programme launched in February 2023 is fully committed, with acquisitions expected to contribute around £8mn annualised EBITDA at an effective multiple of 3.9 times. Organic growth investments are expected to contribute around £2mn once fully operational, at an effective multiple of 3.3 times.
SignaRoc finalised the sale of four non-core assets generating £11mn at an effective multiple of 12.9 times (including land holdings with no earnings impact. The Group also continued its success in market-leading sustainability initiatives, including the Aqualung carbon capture project and the partnership with Materials Evolution for low-carbon cement.
SigmaRoc says its diversified market profile positions the Group to deliver full-year expectations.
Entering the second half of FY23, the SigmaRoc board is mindful that trading conditions will likely remain challenging in several of the Group’s markets. Against this backdrop, however, the Group expects its diversified end market exposure, geographic spread, and decentralised operating model to continue to deliver a resilient performance. As such, the board’s expectations for the full year remain unchanged.
Max Vermorken, CEO of SigmaRoc, said the first half of 2023 had been a “further validation” of the Group’s business model.
“A number of the Group’s end markets have performed ahead of expectations, and we have been able to move swiftly to implement targeted commercial and operational initiatives in response to destocking and slower demand in some product areas and regions, which has contributed to a very resilient performance in the Period.
“In parallel, we were very active on the M&A front, seizing a number of opportunities to strengthen the Group’s footprint through transactions at highly attractive multiples. The Group is integrating those which have already closed and is preparing to welcome others in H2. The Group has taken a firm step forward competitively, strategically, and financially.”
Looking further ahead, Vermorken said SigmaRoc needed to respond to the challenges of more volatile end markets and adapt accordingly. He said the Group continues focusing on operational, safety and governance improvements to build a “leading Group in quarrying, limestone and industrial materials”.
