SigmaRoc reports record results for 2022

Quarried materials group SigmaRoc reported a record set of results for 2022 on Monday, with revenue rising 98% year-on-year to £538m, and EBITDA 106% higher at £101.7m.

The AIM-traded company said its EBITDA margin expanded by 80-basis points to 18.9%, as its net margin increased 140-basis points to 21.8%.

Profit before tax grew 134% to £62.7m, and earnings per share improved by 49% to 8p.

The firm’s net debt, however, increased 18% to £193.8m, while the leverage ratio increased 5% to 1.77x.

However, the company also reported an 83% increase in free cash flow to £54.3m, and a return on invested capital increased 310-basis points to 10.7%.

The board described a year of strong delivery, with its full-year results ahead of original expectations.

Organic like-for-like revenue grew 19%, and underlying EBITDA grew 9%, as SigmaRoc delivered £5m of annualised EBITDA improvement initiatives across the group.

“2022 was an extremely challenging year from an operational and a commercial standpoint,” said chief executive officer Max Vermorken.

“However, the group delivered performance well ahead of expectations and made enormous strategic progress, demonstrating the strength of our operational model and management structure.”

Vermorken said the “exceptional year” gave the company the opportunity to “get on the front foot strategically” at the start of 2023, with a “robust pipeline” of organic and acquisition investments to support organic growth and accelerate its strategic goals.

“We remain vigilant towards continued variable conditions across our end markets, but we are confident that the group can once again demonstrate its resilience and achieve further strategic progress in 2023.”

At 1410 BST, shares in SigmaRoc were down 0.3% at 53.64p.

Reporting by Josh White for Sharecast.com.