4 February 2021
(EPIC: SRC / Market: AIM / Sector: Construction Materials)
(‘SigmaRoc’, the ‘Company’ or the ‘Group’)
2020 Full Year Trading Update
SigmaRoc, the AIM quoted buy-and-build construction materials group, is pleased to provide the market with the following update for the year ended 31 December 2020, ahead of the publication of its audited results, on 13 April 2021:
The Company is pleased to announce that the strong trading performance set out in its update of 9 December 2020, continued through the end of financial year. As a result, SigmaRoc expects to report final results ahead of current market expectations, with consolidated unaudited Group revenues of approximately £124 million, representing a 77 per cent. increase on the previous year, and EBITDA of approximately £23.8 million, representing a 64 per cent. increase on the previous year.
Continued focus on cash management, together with the positive trading momentum, resulted in good operational cash generation for the year, with adjusted leverage1 at 31 December 2020 of 1.7x. The Group’s year-end cash position was £27.4 million, benefitting from the net proceeds from the equity raise in December 2020 of approximately £12 million.
The Group saw encouraging market conditions in the latter part of 2020 across all of its businesses,
with particularly strong demand for its RMI and infrastructure products which have continued into the early part of 2021. To date in the new year, all of the Group’s sites remain operational bar the sites at Les Vardes and Monmains which are closed temporarily in line with the imposition of a brief lockdown in Guernsey. Financially the Group remains on target and operationally the Group continues to maintain robust and comprehensive safe working procedures which have resulted in good production volumes across all sites in January.
The enhanced platform for the Group created in 2020 provides a strong base for further progress in 2021. The Board is encouraged by governmental support to keep the construction sector open, but remains mindful of the continued risk and uncertainty posed by the pandemic, with both trading conditions and cash collection monitored systematically on a site by site basis.
Notwithstanding the disruption faced, the Board remained focussed on maintaining the Group’s strategic momentum in 2020, with the full consolidation of the G.D. Harries business in Q3 and development of attractive short term investment pipeline.
The Board is pleased to report that good progress is being made in assessing development and acquisition projects to expand the Group’s footprint at three of its four platforms and expects to provide further updates on these activities before the end of the Q1 2021.
The strong cash generation in 2020, together with the net proceeds of the equity raise and the new £125m credit facilities entered into in December, mean the Group is well positioned to accelerate its strategic development in 2021, as opportunities present themselves.
Max Vermorken, CEO of SigmaRoc, commented:
“Despite a very challenging backdrop we were able to deliver excellent financial results and continued strategic progress in 2020, thanks to nearly 1,000 dedicated colleagues, a good business model and the support of our shareholders.
“Whilst we remain mindful of the backdrop, we have started 2021 well, with progress on all fronts, be it trading, acquisitions, development of our footprint or the continued operational response to COVID-19. Our confidence in the longer term prospects for the Group remains very high and we look forward to taking further positive steps in our development this year.”
1 Adjusted leverage compares net debt to underlying EBITDA for the last twelve months adjusted for pre-acquisition earnings of subsidiaries acquired during the year and their absorbed debt
Information on the Company is available on the Company’s website, www.sigmaroc.com.
|Tel: +44 (0) 207 002 1080|
|Strand Hanson Limited (Nominated and Financial Adviser)
James Spinney / James Dance / Jack Botros
|Tel: +44(0) 207 409 3494|
|Liberum Capital (Co-Broker)
Neil Patel / Jamie Richards / William Hall
|Tel: +44 (0) 203 100 2000
|Peel Hunt (Co-Broker)
Mike Bell / Ed Allsopp
|Tel: +44 (0) 20 7418 8900|
|Tel: +44 (0) 207 002 1080
The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.