SigmaRoc PLC Trading update (9922H)
December 09 2020 - 1:00AM
UK Regulatory
TIDMSRC
RNS Number : 9922H
SigmaRoc PLC
09 December 2020
9 December 2020
(EPIC: SRC / Market: AIM / Sector: Construction Materials)
SIGMAROC PLC
( ' SigmaRoc ' , the 'Company' and together with its
subsidiaries, the 'Group' )
Trading update
SigmaRoc, a heavy construction materials group active in the UK,
Channel Islands and the Benelux, is pleased to update the market on
its continued resilient trading and financial performance during
the second half of 2020.
Highlights :
Revenue Revenues of GBP114m for the 11 months ended November
2020 - a 78% increase over the prior year, significantly
ahead of current market expectations
FY20 outlook Full year underlying results expected to be comfortably
ahead of current market expectations
Cash generation Strong cash generation resulted in an increase
in cash and equivalents to GBP14.5m at 30 November
2020, subsequent to acquisition of the remaining
60% equity interest in GDH from cash reserves
Furlough: Group to repay UK funding assistance of approximately
Debt refinancing GBP250k
New Group-wide facility on schedule for completion
by year end
Fundraising Proposed equity issue to raise approximately GBP12.4
million for further near-term earnings enhancing
acquisitions and investment pipeline
Revenue and trading:
For the eleven month period ended 30 November 2020, the Group
recorded consolidated unaudited revenues of GBP114 million,
representing an increase of 78 per cent. over the equivalent period
in 2019. At the time of the publication of its interim results, on
7 September 2020, the Group reported that the combination of
improving demand and a highly effective operational response to the
COVID-19 pandemic had seen an encouraging performance recovery
across all of its businesses starting in May and continuing into
the third quarter of 2020. Pleasingly, following the normal
seasonal reductions in activity, particularly in European markets,
these recovery trends have continued through the second half and
been supplemented by the Group's ongoing commercial and operational
enhancement initiatives. Whilst the further lockdown restrictions
implemented in recent weeks, associated with the second wave of
COVID-19, reinforce an element of uncertainty over outlook, they
have not materially impacted either the Group's operations or
short-term customer demand. As a result, the Board currently
expects to deliver results for the year ending 31 December 2020
ahead of current market expectations.
Cashflow:
As has been the case throughout this challenging period, the
Group continues to focus on cash generation in order to minimise
risk and retain the capacity to make further progress
strategically. As at 30 November 2020, the Group had unaudited cash
and cash equivalents of GBP14.5 million. This reflects further
strong operational cash inflows during the second half, even after
paying the cash consideration for the acquisition of the remaining
60 per cent equity interest in GDH (Holdings) Limited (the 'GDH
Acquisition') at the end of the third quarter.
Furlough:
The Group intends to repay funding assistance received from the
UK Government for the entities under its control during the first
lockdown. This assistance amounted to approximately GBP250k and
will be repaid in full.
Debt refinancing:
As part of the previously announced strengthening of its
financing structure, the Group has made significant progress with a
new group-wide credit facility to replace its existing facilities
in the UK and Belgium. Having received commitment and support
letters from all participating banks, the Group expects the Senior
Facility Agreement to be in place before the year-end.
Outlook:
The Group has achieved results ahead of the Board's expectations
given the challenging trading environment . These are attributable
to the Group's early preparation and active management, ability to
continue operating where permitted and above all its motivated
workforce and management team. The Group is optimistic as to the
potential normalising market conditions in 2021 and has been buoyed
by the UK Government's commitment to infrastructure investment as
part of its COVID-19 recovery strategy.
Fundraising:
Having managed the risks posed by the COVID-19 pandemic early in
its onset, the Group was able to progress its buy-and-build
strategy through the completion of the GDH Acquisition. In order to
take advantage of further opportunities that the current economic
climate is offering, the Group is today announcing a proposed
equity issue, to raise approximately GBP12.4 million, which will
enable it to accelerate execution of its identified near term
acquisition and investment pipeline (the "Fundraising").
The details of the Fundraising are set out in a separate
announcement also released by the Company today.
David Barrett, Chairman of SigmaRoc, commented:
"I am very pleased by the results the Group has achieved in an
exceptionally difficult period and look forward to closing out the
year well ahead of where we expected to be in April and May. I am
very proud of the SigmaRoc team and our ability to execute our
strategy in spite of such difficult circumstances."
Max Vermorken, CEO of SigmaRoc, commented:
"The Group's performance for the eleven months to 30 November
2020 is very strong given the context and risks we faced. The Group
has continued to demonstrate that a decentralised business model
focussed on local markets is a robust approach in our industry,
particularly in challenging times. The Group is supported by a
solid asset base and will continue to confront all challenges
head-on while executing on its buy-and-build strategy to deliver
further shareholder value."
Information on the Company is available on the Company's
website, www.sigmaroc.com .
For further information, please contact:
SigmaRoc plc Tel: +44 (0)
Max Vermorken 207 002 1080
Strand Hanson Limited (Nominated and Financial Tel: +44(0) 207
Adviser) 409 3494
James Spinney / James Dance / Jack Botros
Liberum Capital (Joint Broker) Tel: +44 (0)
Neil Patel / Jamie Richards / William Hall 203 100 2000
/ Cara Murphy
Peel Hunt (Joint Broker) Tel: +44 (0)
Mike Bell / Ed Allsopp 20 7418 8900
Rubik Communications (Financial PR adviser) Tel: +44 (0)
Andrea Mora / Florian Werner 207 002 1080
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.
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END
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