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Re valuation comments from SRC.
Presumably Max is reluctant to say "Valuation is dictated by the market and the large shareholders who can manipulate the market to satisfy short term trading strategies, even though they are aware that the medium term valuation is much greater than currently."
Maybe...
The question on company valuation was just skimmed over in the investor call. In fact the comments were pretty pathetic in their lack of anything concrete. ( no pun intended)
Looks like another mail to the company required.
Several KPIs highlighting comparison with Breedon.
They were all positive for SRC.
It's an open question on why the market apparently are discounting this.
Let's see what they say on the call currently in progress.
The only thing holding this share and the market back now is general sentiment .IMO
How long that will last is anyones guess but Sigmaroc goes from strength to strength as a business
Yes, look much as expected, confirming the basic solidity of the group. main point for me is the fairly significant debt reduction, which, in these times of increasing finance cost, is clearly very important.
'The Group continues to be cash generative and, with cash flow also typically seasonally weighted to the second half, leverage is expected to continue to decline absent of further acquisitions and/or development investment.'
Still making progress with revenue up 17%... results as expected?
Realistic assessment silver blade. whilst i am hoping that a significant change in the macro (e.g. ukraine) may serve as a catalyst for an sp uplift,i am presently resigned to the likelihood of it being a considerable time before i regain my current average of about 100p. by way of the current trading environment there is an article in today's Times re breedon.i can't access it as not signed up,but it is summarised by measurenguy on ADVFN and looks interesting in terms of breedon's take on the current situation of competition in the uk.
Disappointing that we have slipped away from the recent move into the 60's. SRC appears to be range bound in the 55p - 65p territory. Ironically todays valuation is £402m - the precise amount we bought Nordalk for in 2021. In total the business has now spent £600m on purchases - so we are trading about 2/3 of the 'purchase' book value. Despite broker reports - the reality is the business is trading at about 3.5 x 2023 EBITDA - less than half of what might be expected for a growing business. Expensive debt pile and lack of any return to shareholders despite 8p eps (which triggers 75% of the management team's substantial LTIP share awards end of this year) the main issues imo which need to be resolved before we see any material improvement here. SB
Broker update was positive as would be expected with another set of results that overachieved.
On the share price, there is a feeling the market over estimates the costs and doesn't appreciate the capex flexibility.
The view is that a rerate will come as the track record of good results is extended. A continuation of Max's investor presentations should help.
In a pretty awful market, I am thankful for the stability of this investment in my portfolio.
Overall this looks a very solid update to me. one or two weak areas, as was to be expected(e.g. UK residential), but basically it confirms my view that this is very well managed company,which has been adversely affected by some major macro events, but which will, hopefully, over time return to and indeed exceed ,the valuation placed on it before the impact of these events.
Please indulge me with a short diversion into global politics.
A couple of weeks ago news was coming out of US that the Neocons who encouraged the Ukraine war, were becoming nervous. It was going at all to plan and Russia was still in a strong position.
The had discussions direct with Russian diplomats to see if a mutual settlement was possible. It transpires UKR membership of NATO was a red line as it always was.
The neocons put out a message that UKR should not be given membership.
The subsequent NATO conference confirmed no membership until after conflict ended.
This week Biden admin putting out mixed messages, but one that encourages settlement.
What's this got to do with SRC ? The prospect of a settlement appears to have a positive impact on SRC share price.
And why wouldn't it with BlackRock as a large shareholder and having a contract to rebuild Ukraine. I don't necessarily agree with the ethics here, but that's how it works these days.
That's just my opinion.
Thanks Silver. Good to know it's factual. You never know these days.
I am not surprised BlackRock are heading their bets. Fink is is deeply involved in the WEF and their agenda in respect of Ukraine is probably fluid.
Its's more than just a rumour vig - " BlackRock Financial Markets Advisory and the Ukrainian Ministry of Economy signed a memorandum of understanding in November 2022 after Fink and Zelenskyy met in September to discuss driving public and private investments into Ukraine to rebuild the country after Russia’s highly destructive invasion."
Blackrock still playing both sides of SRC - although their 'short' position is down to 6m shares in addition to their 60m+ long position. Should get a H1 2023 update in a month or so - should be decent but still disappointing with lack of return for investors - capital or distribution. SB
I have hear rumours, that I am not able to verify that BlackRock have negotiated an agreement to manage the reconstruction of Ukraine when the hostilities cease.
If this is true, my supposition is that SRC may well benefit significantly on any such activity.
I am not encouraging anyone to act on this information, but just to be aware of something that may evolve and be verified.
Whilst it has been disappointing to the price slide back into the 50's rather than continue to trend upwards, it is worth noting that the proposed capital reduction was approved shareholders at the AGM in April and thereafter by the courts on 23rd May 2023. This has created distributable reserves and will allow the company to pay dividends, make distributions or undertake purchases of its own shares - noting none have actually been proposed to date - but at least the mechanics to allow such actions has been put in place. SB
Good article in this week’s investor’s chronicle and US equivalents to Sigmaroc. Vulcan on a p/e of 24 and eagle on 12. Eagle focuses on residential which is perceived as weaker.
Sigmaroc trades on a historic p/e of 8 and is a real growth company with strong barriers to entry.
Vulcan would pay twice today’s share price to buy Sigmaroc. And Sigmaroc management haven’t finished their growth plans yet. Share price has improved somewhat but due a re rating
hopefully i win
Looks rock solid to me…I guess most of the share price restriction is because of Putin. This is my biggest investment by miles and can’t think of anything else safer
Hello, bought in earlier today on the strength of recent updates and directors buys. Seems like a low volume traded stock and my buy showing as a sell below thus the buy/sell ratio as shown on the page should be higher, if indeed there's any credibility to those shown. Let's see how we progress.
decent purchase by LO. more than doubled their holding. im always a fan of situations where they get more involved.just my opinion of course.
decent purchase by the executive chairman.
solid probably sums it up well.
On Investor Meet platform
SIGMAROC PLC will be holding a Trading Update meeting on 25th Apr 2023 at 9:00am BST
Should you have any questions, please cont
support@investormeetcompany.com
I would be interested Vigneron, thanks.
Today's news that the Swedish State is appealing against the c£17m awarded to Sigmaroc, was to be expected. Therefore, presumably not included in the analysis? FWIW I would be happy for us to get back over 60p, though have 75p in mind as a year end number.
Further to my previous update from the company.
They are also pursuing further analyst coverage.
Numis have now issued a buy recommendation with target of 95p. Not as optimistic as the existing analyst, but I am sure we would all settle for that.
I have the note and can share if anyone's interested.