(Alliance News) - SigmaRoc PLC on Monday said profit shrank significantly in 2019 as a result of higher costs and expenses despite a sizeable increase in revenue.
The construction materials firm reported a GBP2.2 million pretax profit for 2019, a 44% drop from 2018's GBP3.9 million profit.
Revenue was 71% higher, GBP70.4 million compared to GBP41.2 million the year before. However, cost of sales went from being less than half of revenue at GP29.8 million to 72% of revenue at GBP50.9 million due to higher costs. This included a more than doubling of costs from raw materials and consumables used to GBP19.3 million from GBP8.8 million.
This meant that profit from operations increased by only GBP8 million to GBP19.4 million from GBP11.4 million.
Furthermore, administrative expenses more than doubled to GBP14.9 million from GBP6.5 million.
Executive Chair David Barrett said: "I am pleased to report another strong year in 2019 where we were able to substantially grow the group, meeting our ambitious expectations for the year. We made four acquisitions during the year, which collectively and on a pro-forma basis, add GP112 million in revenue and GBP17 million in Ebitda annually.
"I am extremely proud of our continued progress and believe we are well positioned to successfully manage the challenges presented to our business by the Covid-19 pandemic."
Shares in Sigmaroc were 0.5% higher at 34.66 pence on Monday afternoon.
By Anna Farley; annafarley@alliancenews.com
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Sigmaroc. (SRC)