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Highlights:
- Revenue Surge: The company anticipates FY24 revenue will reach approximately £998 million, marking a 72% year-on-year increase, largely attributed to acquisitions. However, proforma revenue shows a slight 2% decline, mainly due to foreign exchange effects and pass-throughs.
- EBITDA Growth: Underlying EBITDA is expected to exceed £222 million, representing a 90% year-on-year growth. The Group’s EBITDA margin also improved, increasing by 220bps to 22.3%.
- Strategic Expansion and Integration: SigmaRoc completed a transformational acquisition of a portfolio of lime and limestone assets from CRH plc, significantly increasing the Group’s scale. The integration of these assets is progressing smoothly, with a synergy programme well on track to achieve €35 million in savings by 2025.
SigmaRoc (LSE:SRC), a prominent European lime and minerals group, has announced strong performance for the year ended 31 December 2024 ('FY24'). The company expects to report a significant increase in financial metrics, driven by successful acquisitions and strategic initiatives. The Group’s trading results for FY24 are expected to exceed current consensus expectations, reflecting robust growth in both revenue and EBITDA.
Impressive Financial Performance
SigmaRoc is set to report a significant revenue boost for FY24, expected to hit around £998 million, a 72% increase from the previous year. This surge reflects the contributions of several key acquisitions, which have been integral to the Group's growth. However, when considering proforma revenue, there was a slight 2% decrease in like-for-like performance, primarily impacted by foreign exchange fluctuations and pass-through effects. Despite this, the company remains confident in its financial outlook, with underlying EBITDA anticipated to grow by 90% year-on-year to exceed £222 million, highlighting a strong operational performance.
The Group’s underlying EBITDA margin has also improved, rising 220 basis points to 22.3%, underscoring the successful integration of new assets and the realization of operational efficiencies. Furthermore, underlying earnings per share (EPS) is expected to be approximately 8.3p, around 10% ahead of market consensus and 3% higher than the previous year. This solid performance reflects the Group's growing profitability and effective cost management strategies.
Strategic Acquisitions and Restructuring
SigmaRoc made significant strides in 2024 with its acquisition of a portfolio of lime and limestone assets from CRH plc, a move that has effectively doubled the size of the Group. The integration of these assets is largely complete, with successful closures of acquisitions in Germany, the Czech Republic, Ireland, the UK, and Poland throughout the year. This acquisition has expanded SigmaRoc’s footprint across Europe, providing a broader base for future growth.
The Group has also focused on optimizing its capital structure, including the disposal of non-core Belgian and French concrete plants, for a total consideration of €49.5 million. This disposal was executed at a multiple of over 7x LTM EBITDA, further enhancing the company’s financial position.
Future Outlook and Capital Optimisation
SigmaRoc is in advanced talks to replace its bridge loan, which expires in November 2025, with a longer-term facility at preferential rates. This move is designed to optimize the company’s capital structure, positioning it for continued growth. Furthermore, the company’s synergy programme remains on track, with a minimum €35 million expected in savings by 2025, and a target of €60 million by the end of 2027.
The company’s focus on production efficiency, cost reductions, and organizational optimization remains a key driver of its long-term strategy. The board was strengthened during the year with the appointment of two independent non-executive directors, reflecting the Group’s commitment to maintaining strong governance as it grows.
