TIDMSRC
RNS Number : 8192I
SigmaRoc PLC
06 April 2020
6 April 2020
(EPIC: SRC / Market: AIM / Sector: Construction Materials)
SIGMAROC PLC
( ' SigmaRoc ' , the 'Company' or the 'Group' )
Q1 2020 trading ahead of estimates
H1 2020 operational outlook
FY 2020 guidance
Q1 2020 trading momentum a continuation of strong H2 2019
performance and ahead of analyst estimates
For the first quarter of 2020, SigmaRoc has performed ahead of
budget and analyst estimates, despite significant weather
disruption and flooding across the UK and the Channel Islands, and
the start of the Covid-19 pandemic. For the quarter, the Group
recorded unaudited revenues of GBP26.5m, an 87% year-on-year
increase, and unaudited underlying EBITDA of GBP5.25m, representing
a 144% year-on-year increase.
This performance is a continuation of the trend set in the
second half of 2019, where the Group made further progress with the
rollout of its strategy. As a result, the Group was able to
generate sufficient cash from operations to cover both its
non-underlying acquisition and restructuring expenses of GBP3.9m
relating to the purchase and integration of four businesses in
2019, whilst also reducing gross debt by EUR2m in its Benelux
operations.
Operational update for Q2 2020
Further to the Company's announcement of 25 March 2020, the
Group has decided to remain active across its operations where it
can ensure compliance with all applicable government welfare
guidelines and where there is a clear strategic and financial case
in the local market.
As required by local government instructions, the Group has had
to close all but essential infrastructure maintenance operations,
in both Guernsey and Jersey, for a period of 14 days. It is
expected that permitting system will be implemented in Jersey
shortly, which will allow the reopening of accredited construction
sites and in turn the Group's operations.
In the UK, the Group remains active across all sites supplying
product where doing so is an economically viable proposition for
its customers. In this context, the Group has decided to suspend
some of its production capacity and supply from stock. In Wales,
G.D Harries remains active across a number of civil engineering and
road maintenance contracts, having reduced production and haulage
capacity in-line with current local demand.
The Group's Belgian businesses also remain operational with the
support of staff and unions, supplying bluestone to a reduced
number of active customers. The Group's partner in the sale of
aggregates from its Soignies quarry has decided to close its
production entirely until further notice. However, the Group
continues to supply customers from its other aggregate quarries
near the town of Huy.
FY 2020 guidance
In light of the operational picture provided above, the Group
anticipates that reduced activity and demand levels in the month of
April and possibly the month of May, will result in substantially
reduced revenue and EBITDA performance in the second quarter,
relative to the Group's expectations prior to the onset of the
Covid-19 pandemic. The Group is confident that it has robust
business continuity and cost mitigation plans, however, given the
very high level of uncertainty presented by current events, it does
not believe it is possible to provide accurate guidance to the
market for the current financial year at this time.
The Group benefits from both a diverse regional market base and
operational footprint, with experienced local management teams.
Continuity plans have been implemented swiftly, to ensure the
business can remain operational where end market demand continues
to require our support. SigmaRoc has a tightly controlled cost base
in any event and actions have, and will continue to be taken, to
conserve cash further as appropriate. As at 3 April 2020, the Group
had GBP11m in cash reserves and undrawn headroom of GBP5m under its
RCF facilities, providing a solid liquidity position from which to
navigate through even a protracted period of disruption. As such,
the Board is confident that the Group remains in a strong position
to confront the currently foreseen consequences of the Covid-19
pandemic and respond quickly as markets recover.
The Group will provide further updates on its progress with the
release of its FY2019 results scheduled for 20 April 2020.
Max Vermorken, CEO of SigmaRoc, commented:
"I am pleased to report good numbers for the first quarter of
2020, demonstrating the underlying quality of the Group. As the
Covid-19 pandemic continues to evolve, we will see it impact our
Group through site closures in-line with government regulations. As
a Group, we continue to strictly adhere to government guidelines,
to ensure our sites comply with the required safety protocols and
keep our staff safe. In this way, we can remain operational, to the
extent possible, to support our suppliers, customers and local
economies, such that we best prepare our business for a recovery
post the Covid-19 pandemic."
Information on the Company is available on the Company's
website, www.sigmaroc.com .
For further information, please contact:
SigmaRoc plc Tel: +44 (0) 207 002 1080
Max Vermorken
Strand Hanson Limited (Nominated and Tel: +44(0) 207 409 3494
Financial Adviser)
James Spinney / James Dance / Jack Botros
Liberum Capital (Broker) Tel: +44 (0) 203 100 2000
Neil Patel / Jamie Richards / Jonathan
Wilkes-Green / William Hall
Rubik Communications (Financial PR adviser) Tel: +44 (0) 207 002 1080
Andrea Mora / Charlotte Hollinshead info@rubikcomms.com
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.
This information is provided by RNS, the news service of the
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END
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