European lime and minerals group SigmaRoc says it had strong trading in the third quarter with revenue increasing 67% year-on-year to £729m.
The group added that Q3 has seen robust trading in most markets, despite mixed demand in residential construction and the German power/auto sectors. With reduced pass-through effects, proforma revenues were down 4%, and volumes down 3% on the same basis.
Pricing remained robust, supported by tight cost control and the benefits of increased scale resulting in continued improvement in the EBITDA margin to 22.6% and driving proforma EBITDA up 2%.
Fundamental to another solid quarter was the diversified model and end market exposure, showing once again resilience as several markets outperformed expectations, particularly the North-East and North-West regions.
igmaRoc says that the positive start to the second half of the year continues with food, agriculture, mining and infrastructure sectors performing well, mitigating continued softness in residential construction and isolated pockets of other markets. The group added that it welcomes expected interest rates reductions in Europe and the UK, which should boost general sentiment and support a recovery in residential construction in particular.
SigmaRoc says that its unique position in the European lime market and its significant resource base differentiate the group from other businesses lacking broad end market exposure, or access to high quality and strategically located mineral resources.
It adde that its staff have delivered another period of progress, nearing completion of the CRH lime assets integration, and its expectations from the synergy program continue to improve.
The board’s outlook for FY24 remains unchanged, with EBTIDA in line with consensus expectations3.
SigmaRoc CEO Max Vermorken commented: “The group has delivered excellent results for the period despite the current mixed landscape and is well positioned to benefit from improving market sentiment. Whilst remaining mindful of conditions in some of the group’s markets, the strong Q3 performance, combined with our diversified end market exposure and decentralised operating model, gives the board confidence in maintaining full year expectations.”
