SigmaRoc reports 'strong' first half of trading

Quarried materials supplier SigmaRoc described a “strong” first half in its interim results on Monday, demonstrating the effectiveness of its diversified model.

The AIM-traded firm said its revenue for the six months ended 30 June totalled £247m, which was 17% ahead of last year on a pro-forma basis.

EBITDA came in at £47.6m, which was up 6% year-on-year on a proforma basis, which the board put down to the pass-through and management of inflationary cost increases.

Underlying operating cash generation was £22m, with leverage within the group's target range.

Looking ahead, SigmaRoc said the second half had started “well”, benefitting from the group's diversification.

It said demand remained “good” for both housing and infrastructure, as well as for industrial minerals, as the company continued to focus on inflationary cost management, particularly energy, with further operational improvement initiatives to be implemented.

The board said it was cognisant of the macroeconomic backdrop, but added that the group was “well-placed” to make further financial and strategic progress in the second half.

It said the firm’s long-term potential remained “exciting”, with significant opportunities to extend its geographical reach and product offering across a range of markets for high-quality construction materials and industrial minerals.

“Amidst a new set of challenges in the first half of the year, the group once again demonstrates its drive and agility,” said chief executive officer Max Vermorken.

“We closed the first six months of 2022 well on track while successfully managing inflationary pressures across the group, the industrial action in Finland and the consequences of the Ukraine conflict.

“Our focus for the second half remains on numerous strategic projects including our industry leading environmental, social and governance (ESG) commitments and our partnership with ArcelorMittal for green quicklime, while continuing to look for further opportunities to grow.”

At 1154 BST, shares in SigmaRoc were up 1.68% at 48.4p.

Reporting by Josh White at Sharecast.com.