Interim Results for the six months ended 30 June 2017

SigmaRoc plc (‘SigmaRoc’ or the ‘Company’)

Interim Results

SigmaRoc plc, the AIM listed buy-and-build construction materials group, announces its unaudited interim results for the six months ended 30 June 2017.

 

Highlights:


 

6 months to  30 June 2017
SigmaRoc
6 months to 30 June 2016
Ronez

Change

Revenue

£13.1m £11.8m

11.8%

Operational* EBITDA

£2.9m

£1.9m 52.6%

Operational* profit

£2.0m £1.0m

100.0%

Net debt/(cash)

£8.3m (£0.6m)

1,487.1%


* Operational results are stated before holding company costs, acquisition-related expenses, redundancy and reorganisation costs, property items, amortisation of acquisition intangibles and related tax items. Operational results are presented as the closest comparable on a like-for-like basis with Ronez in 2016. References to an operational profit measure throughout this announcement are defined on this basis.


Acquisitions:

  • Successful acquisition of Ronez Limited (‘Ronez’), the Channel Island construction materials producer in January for £45m;
  • Successful acquisition of a dry bulk carrier ship and the creation of SigmaGsy Limited (‘SigmaGsy’) shipping division in April 2017;
  • Santander Term facility of £18m secured in addition to £2m revolving credit facility;
  • Strong pipeline of target companies having reviewed 12 targets to date;
  • Several targets currently between exclusivity and early analysis;

Integration & operations:

  • Successful creation of back office infrastructure significantly ahead of time and budget;
  • Delivery of key operational improvements in H1 2017, leading to a 52.6% operational EBITDA increase versus H1 2016 on a like-for-like basis;
  • Successful launch of the Gold Card initiative for Safety and Operational reporting;
  • Creation of share save scheme for colleagues at Ronez and SigmaGsy;

David Barrett, Executive Chairman, commented:

“I am pleased to report a strong first half of 2017, with solid performances by both Ronez and SigmaGsy. This performance is all the more significant, given the challenges created by an ownership change, creation of a new back office and the addition of a new shipping division.

“I am also very pleased to see how our colleagues at Ronez have embraced their independence and helped us deliver these results. Ronez is, as we knew, a high quality business and an excellent example of SigmaRoc’s operating model in practice; buying a local business and improving its ability to perform in highly localised markets.

“Looking ahead, to the rest of the year and beyond, the Company’s prospects are positive. Demand for building materials in the Channel Islands, driven by several major projects, is expected to remain steady, while our efforts to find, acquire and improve local businesses has gained further momentum, now we have successfully integrated Ronez.”

Max Vermorken, CEO, commented:

“The acquisition of Ronez and integration of our first business was a defining moment in our journey. The first half of this year was not without challenges, but the results to date show we are on track with the delivery of our strategy. As a team and as a business we are in a solid position to build on this first step and deliver further shareholder value, through future acquisitions and further operational improvement.”

John Bowater, CFO and Deputy CEO of Aggregate Industries, commented:

“We are pleased to see that following the sale of Ronez to SigmaRoc, the transition of ownership has been smooth and successful. This is a real testimony to the ability of the team at SigmaRoc under the guidance of its Chairman and Chief Executive.”

SigmaRoc will host a meeting for invited analysts at 9.00 a.m. today and there will be a simultaneous conference call.  Please contact Ed Orlebar at Temple Bar Advisory for dial-in details.

> The slides for the conference call are available for download here

> Please follow this link to download the full text of this RNS in PDF format.


Enquiries:

SigmaRoc Tel: +44(0)207 002 1080
Max Vermorken, CEO
Strand Hanson (Nominated and Financial adviser) Tel: +44(0)207 409 3494
James Spinney / James Dance
Zeus Capital Limited (Joint Broker) Tel: +44(0)203 829 5000
Rob Collins / Alex Wood
Berenberg (Joint Broker) Tel: +44(0)203 207 7800
Ben Wright / Mark Whitmore / Laure Fine
Temple Bar Advisory (Financial PR adviser) Tel: +44(0)207 002 1486
Ed Orlebar / Tom Allison / Alycia MacAskill sigmaroc@templebaradvisory.com

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