SigmaRoc upbeat on Ronez Ltd acquisition

SigmaRoc said the trading performance of Ronez Ltd has been strong, adding the development of that company's required back-office systems was proceeding at a much lower cost and faster than expected.

Ronez, the company's Channel Islands-based acquisition, had enjoyed strong January sales volumes that were above budget. It also had a healthy order book for first-quarter 2017.

"The development of the required back-office systems is proceeding at a much lower cost and a much faster pace than initially expected, with the business currently on track to complete the systems implementation by end-April 2017," said construction materials business SigmaRoc.

As a result, SigmaRoc anticipated a roughly 50% reduction in the back-office systems budget this calendar year.

"Operational Excellence programmes are being implemented which will generate further EBITDA improvement across the Ronez business throughout this year," it added in a statement.

SigmaRoc also said it had agreed terms with Santander UK on a £2m revolving credit facility.

At 12:47 GMT, shares in AIM-quoted SigmaRoc were down 1.25% to 39.5p each.