SigmaRoc says strong trading continues through third quarter

(Sharecast News) - Buy-and-build construction materials company SigmaRoc said on Wednesday that the strong trading performance it reported in the first half had continued through the third quarter, as it generated revenues of £73m in the three months ended 30 September.
The AIM-traded firm said sustained demand across its range of geographical and product markets, as well as its management of a "challenging" supply chain environment, resulted in all platforms delivering a third quarter in line with management expectations.

In addition, following receipt of regulatory clearances in Poland, it completed its acquisition of Nordkalk on 31 August.

The integration of Nordkalk was said to be progressing well, with the business trading as expected through the period.

SigmaRoc said demand in the third quarter for precast products in the UK and aggregates, concrete and dimension stone in the Benelux market continued the positive trend seen in the first half.

In Jersey, planning permission was granted to allow a large extension to the Ronez quarry, and in South Wales, margins were continuing to improve as a result of the ongoing review of efficiencies.

Recent and ongoing increases in energy costs were being seen across all industries, and the availability of haulage and transport was also presenting challenges, particularly in the UK.

The company said it was keeping those challenges constantly under review, with steps taken to mitigate them, including the strategic fixing of certain hydrocarbon costs, ongoing business reviews to optimise production and efficiency, price increases where necessary, the sourcing of additional haulage, as well as investing in its own heavy goods vehicles and drivers.

SigmaRoc said the outlook for the rest of the year remained positive, with the sustained demand seen across its businesses expected to continue into the final quarter.

Supply chain and inflationary pressures were being managed effectively, with the benefit of the group's diversified platform model enabling local market-specific plans to be implemented.

"The third quarter has delivered solid results, building on our momentum from the first half of the year," said chief executive officer Max Vermorken.

"We have delivered a transformational acquisition with Nordkalk and this is already beginning to deliver significant earnings growth and cash generation.

"The group is well positioned to continue its strong performance and to develop future opportunities."

At 1120 BST, shares in SigmaRoc were down 0.49% at 101p.