SigmaRoc (SRC ) said it expects to report final results for the year ended 31 December 2020 ahead of current market expectations as a result of the Group’s “continued strategic progress.”
The buy-and-build construction materials group informed investors that strong trading reported in an update in December 2020 continued through to the end of the financial year.
SigmaRoc said it now expects revenues of around £124m, representing a 77% year-on-year increase, and EBITDA of around £23.8m, representing a 64% increase on the previous year.
A focus on cash management, together with the positive trading momentum, resulted in good operating cash generation for the year, with adjusted leverage at period-end at 1.7x.
The Group’s year-end cash position was £27.4m. SigmaRoc noted that it had benefited from the net proceeds from the equity raise in December 2020 of approximately £12 million.
The strong cash generation in 2020, together with the net proceeds of the equity raise and the new £125m credit facilities entered into in December, mean the Group is ‘well positioned to accelerate its strategic development in 2021,’ the Company told investors.
SigmaRoc saw encouraging market conditions in the latter part of 2020 across its businesses with strong demand for its housing and repair, maintenance and improvement (RMI), as well as its infrastructure products which have continued into the early part of 2021.
Shares in SigmaRoc have increased by 50% since the beginning of November 2020 to open this morning at 6.20% higher at 68.5p following the Group’s 2020 full year trading update.
All of the Group's sites remain operational except for the sites at Les Vardes and Monmains which are closed temporarily in line with the imposition of a brief lockdown in Guernsey.
Financially, the Group outlined that it remains ‘on target’ and operationally it continues to ‘maintain robust and comprehensive safe working procedures which have resulted in good production volumes across all sites in January,’ it told investors.
The Board said it is encouraged by governmental support to keep the construction sector open, ‘but remains mindful of the continued risk and uncertainty posed by the pandemic, with both trading conditions and cash collection monitored systematically on a site by site basis.’
‘The Board is pleased to report that good progress is being made in assessing development and acquisition projects to expand the Group's footprint at three of its four platforms and expects to provide further updates on these activities before the end of the Q1 2021,’ it said.
"Despite a very challenging backdrop we were able to deliver excellent financial results and continued strategic progress in 2020, thanks to nearly 1,000 dedicated colleagues, a good business model and the support of our shareholders,” said CEO, Max Vermorken.
He added, "Whilst we remain mindful of the backdrop, we have started 2021 well, with progress on all fronts, be it trading, acquisitions, development of our footprint or the continued operational response to COVID-19. Our confidence in the longer-term prospects for the Group remains very high and we look forward to taking further positive steps in our development this year."
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