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So fidelity have taken a 5% plus stake in SRC.very interesting.
I ss we have a trading statement on the 12th, presumably ahead of the agm.
Mega brings her ESG experience, just when the tide is turning on this nonsense. Just my opinion but ESG and DEI are now being attacked increasingly, but I guess for now they have to play the game, given BlackRock investment.
More accurate to have said limestone quarry.
The sp has dipped slightly on release of the results. Nothing to be overly concerned with. The bottom line has taken a hit from interest payments which is to be expected. Also importantly, due to the timing of the CRH deal in early Jan, more than £20m in associated costs.
Going forward, the view is that interest rates are on the way down this year. With regard to H1 and Full Year bottom lines for this year, we know that some of the CRH deal costs have already been accounted for. Plus we can expect to see increased revenues as a result of that initial deal. Throw into the mix the recent additions to the board and I'm happy to hold. That said we won't see the full benefit of the whole CRH deal and Interest rate reductions until Full Year 2025. By then, it is quite possible that the sp will have gone back over 100p.
Agreed on Peter Johnson. I note that he was a CEO of Rugby Group, manufacturers of cement in Rugby, with their own limestone mine in Southam. A useful addition to the board.
Also Francesca Medda seems to have been involved all over the place with her multi-talents. Sigmaroc have highlighted her experience including in public finance, ESG and innovation, which indicates why she's joining the board.
Johnson looks like a real heavyweight.not quite sure what medda will add, but perhaps she will bring an additional perspective/dimension to the existing mix.
Things moving forward as expected.
Very much agree with that.would be very surprising if the rest of the deal did not go through(although i accept that nothing is ever absolutely certain)
The deal with CRH is a game changer. Assuming the rest of the deal goes through, Sigmaroc look like being the largest lime producer in Europe. As I understand it CRH are committed to buying Lime from them. The price of lime is not going to collapse as it is required for the green revolution. The Sigmaroc team have done really well to negotiate this and get the deal through. An eventual main market listing would be the icing on cake, who knows, but would definitely push the sp up.
Pleased to see MI Chelverton fund taking just under 4% stake.
Very encouraging.
As the price of the share is rising steadily, I thought I would get a company perspective.
The information I got was that the Lime transaction that was announced weeks ago was in discussion last year.
This is when I was complaining bitterly to the company about shareholder value.
The transaction seems to have been positive with regards to inflow of investment from UK, Europe and encouragingly from the US.
Thi as appears to be prompted by the scale now achieved by SRC and a business that now has a a more balanced portfolio of products.
This overrides the concerns over the increased debt, which private investors have commented on.
They significant integration work to complete over 2 years or so and IT systems figure largely in this. They are confident that this will go smoothly.
So it seems to have the thumbs up from the institutions based on a solid business now with sufficient scale.
They believe the share price has a way to go, I hope they are right.
I am still down here but not so much now as I added at coca 44p.
Encouraging.thanks for posting.
Https://www.thisismoney.co.uk/money/investing/article-12933207/MIDAS-SHARE-TIPS-SigmaRocs-limestone-brick-road-lead-riches.html?ico=mol_desktop_money-newtab&molReferrerUrl=https%3A%2F%2Fwww.dailymail.co.uk%2Fmoney%2Findex.html&_ga=2.73125523.1883406695.1704580475-829466088.1679172563&_gl=1*gzli41*_ga*ODI5NDY2MDg4LjE2NzkxNzI1NjM.*_ga_XE0XLFFF16*MTcwNDU4MDQ3NC41OC4xLjE3MDQ1ODA1MzIuMC4wLjA.
Bill Fawkner-Corbett, Head of SIGnet, will host a SIGnet after-meeting on Sigmaroc PLC following their Conditional Acquisition of European Lime & Limestone Assets presentation with IMC on 7th December 2023. The after-meeting will be held on Zoom to enable members to discuss the company. The meeting will be chaired to provide structure and enable all members to take part. Click here to register: https://www.sharesoc.org/events/signet-after-meeting-on-sigmaroc-plc10-jan-2024/
Prior to yesterday SRC had spent £600m acquiring businesses which had a market cap of c. £350m and net debt of £180m. The new deal will increase net debt to more than £600m. Assuming the market places a similar discount on its new acquisition to those proceeding there could be a material medium term slide in the current share price - have to hope new investors are in for the long haul and do not flood the market with cheap shares or this could get a lot worse. SB
Buy recommendation from simon thompson. https://www.investorschronicle.co.uk/ideas/2023/11/22/sigmaroc-enters-the-big-time-with-1bn-acquisition/
I think this is a good deal. We gain size and reach the £1bn turnover "target". I trust the management to improve EBITDA and become an attractive target for the yanks.
However from a short term sp point of view we are headed for low 40's IMHO. After all, many of the reasons given for the poor valuation this year are caused by anticipations re falling demand, inflation and high debt costs and this deal will magnify such fears.
I doubt the short term johnies who bought previous placings care as they will have sold out as soon as they could get their greedy little hands on cash.
So the retail offer wasn't open for very long.secure message from HL shortly after 12.00 to say it had closed.pretty much par for the course in these situations,as everything is by and large pre-ordained and orchestrated. nothing to be read into it imo.
Out of interest one of my favourite apocalyptic movies from the 80's starred Mel Gibson. It was called Mad Max (MM). Deal 1 looks like we are paying a multiple of 8 for the businesses involved (745m euro to purchase a business looking to make c.90m euro ebitda 2023). SRC trades on a multiple of just over 3. The scale of debt being raised at near 15 year interest rates is significant (c.7% all in) which will be added to existing overall debt. Still 52m new share options being issued to the management team post completion will ease the pain for some. Shareholders at the end of a long line to see any return here - and from the looks of it there is more to come.....MM2 and MM3 much like the movies. Buy to build. Invest to lose. SB
Lets not forget the raise for Nordkalk which was at 85p. Share price almost 50% underwater since then
Bigboy, Ideally the share price should have increased with each acquisition. Those who took part in the 54p placing must be feeling like it wasn't worth it*, now the next placing is 20% cheaper. Perhaps that is why it has been such a laggard.
Remember that there is no dividend here, so you capital has just reduced, regardless of what you now own. I also hold breedon at a loss, and that looks like it will get taken out cheap by the Ned who has bought near to 29%.
Anyone looking to take part in the retail offer needs to act quickly. I've just had an email saying it will close no later than 11am today.