LONDON (Alliance News) - Construction materials firm SigmaRoc PLC said Monday it has acquired a concrete firm for GBP15 million amid "strong" results for the firm during the first ten months of 2018.
For the ten months ended October, revenue and underlying earnings before interest, taxes, depreciation and amortisation were expected to be "significantly improved" on the year prior. Revenue was 58% higher than the year before despite "weather disruptions and more challenging market conditions".
In addition, SigmaRoc announced it would acquire Liverpool and Manchester-focused concrete and quarrying firm CCP Building Products Ltd for GBP15.2 million in cash, on a cash and debt free basis.
The deal will be funded through its term loan and revolving credit facility with Santander UK PLC. The firm also noted this facility had been extended to GBP34 million from the initial GBP20 million.
For the year ended August, CCP generated adjusted Ebitda of GBP2.6 million on revenue of GBP20.9 million. In 2017, SigmaRoc generated GBP5.5 million underlying Ebitda on revenue of GBP27.1 million.
"Invest, Improve, Integrate - It is a strategy which is already delivering strong results and will continue to do so," SigmaRoc Chief Executive Officer Max Vermorken said. "CCP will be a great fit in our journey, immediately accretive and a truly excellent addition to the group. CCP's management team will continue to drive its performance and continue the growth of an already very impressive business."
SigmaRoc was also considering accepting an offer to refinance its convertible loan note instruments after receiving the proposal from Ravenscroft Ltd. Ravenscroft proposes an offer that allows the company to redeem the notes on terms which it "considers favourable and intends to accept".
Acceptance of the Ravenscroft offer is dependent on the passing on resolutions at a general meeting on December 27.
"We are about to close out a year of significant further development of the group," SigmaRoc Chairman David Barrett said. "The acquisitions made in 2017 are performing very well. We expect CCP will be an excellent addition to the group, value accretive for shareholders and the right next step overall. With the support of the CLN holders and Santander we are able to position SigmaRoc for a solid start of what we hope will be another excellent year."
Shares in SigmaRoc were 1.1% higher at 38.00 pence on Monday.
Sigmaroc. (SRC)