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Maybe an acquisition in the air with a fund raising around 110p

Or perhaps just shorters.

Although Ukraine peace may seem distant than a few months back it will probably be agreed all of a sudden.

I think the good start to the year recognises the amount of business from the reconstruction when peace is agreed.

For me its a strong hold due to the underlying european demand, good management and possible promotion out of AIM when the debt is lower. LTH

Simply Wall St.

SigmaRoc plc's (LON:SRC) Fundamentals Look Pretty Strong: Could The Market Be Wrong About The Stock?

Simply Wall St

Wed 22 October 2025 at 6:55 am BST 3 min read

In this article:

SRC.L

+0.12%

With its stock down 7.1% over the past month, it is easy to disregard SigmaRoc (LON:SRC). However, stock prices are usually driven by a company’s financials over the long term, which in this case look pretty respectable. In this article, we decided to focus on SigmaRoc's ROE.

Return on equity or ROE is an important factor to be considered by a shareholder because it tells them how effectively their capital is being reinvested. Put another way, it reveals the company's success at turning shareholder investments into profits.

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How Is ROE Calculated?

The formula for ROE is:

Return on Equity = Net Profit (from continuing operations) ÷ Shareholders' Equity

So, based on the above formula, the ROE for SigmaRoc is:

6.4% = UK£50m ÷ UK£779m (Based on the trailing twelve months to June 2025).

The 'return' is the profit over the last twelve months. So, this means that for every £1 of its shareholder's investments, the company generates a profit of £0.06.

Check out our latest analysis for SigmaRoc

Why Is ROE Important For Earnings Growth?

We have already established that ROE serves as an efficient profit-generating gauge for a company's future earnings. Based on how much of its profits the company chooses to reinvest or "retain", we are then able to evaluate a company's future ability to generate profits. Assuming everything else remains unchanged, the higher the ROE and profit retention, the higher the growth rate of a company compared to companies that don't necessarily bear these characteristics.

SigmaRoc's Earnings Growth And 6.4% ROE

At first glance, SigmaRoc's ROE doesn't look very promising. Yet, a closer study shows that the company's ROE is similar to the industry average of 6.0%. Moreover, we are quite pleased to see that SigmaRoc's net income grew significantly at a rate of 36% over the last five years. Taking into consideration that the ROE is not particularly high, we reckon that there could also be other factors at play which could be influencing the company's growth. Such as - high earnings retention or an efficient management in place.

We then compared SigmaRoc's net income growth with the industry and we're pleased to see that the company's growth figure is higher when compared with the industry which has a growth rate of 3.6% in the same 5-year period.

past-earnings-growth

AIM:SRC Past Earnings Growth October 22nd 2025

Earnings growth is a huge factor in stock valuation. What investors need to determine next is if the expected earnings growth, or the lack of it, is a

Just shares transferring from the impatient

"As part of the successful secondary placing of ordinary shares in the Company which was announced earlier today by CRH (UK) Limited, a subsidiary of CRH plc ("CRH"), through JTC Employer Solutions Trustee Limited, in its capacity as trustee ("the Trustee") of the SigmaEBT (the "EBT"), the Company purchased 14,895,581 Ordinary Shares at a price of 67 pence per Ordinary Share on 6 February 2025."

Https://www.constructionenquirer.com/2024/05/13/pudlo-waterproofing-brand-rescued-from-administration/

Doubt src paid much as no rns.

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.

Hi Vigneron53 - thanks for the post. My e mail is acgt@yahoo.co.uk.

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...

thank you very much for sharing Vigneron

We may have an 11 month trading update b4 xmas.

There have been such in the last 2 years 9.12.20 and 16.12.21

< The big boys don’t like smaller and indebted companies in a recession.>
Pershing don't seem to mind!

70p would be enough for major shareholders to stick their grubby hands in the air knowing they will have plenty of growth when they take part in the private jamboree.

Why is Blackstock selling this down?
Why aren't the Directors buying?
It could be that a low ball bid is being planned below 40p to go private

Bangrak>> I agree with much of your post and can only see catastrophe beyond 10 years. However until then we can make money from the PGMs. People will not give up their cars and cannot afford electric so exhausts will be here for at least 10 years. How many of those cars are new cars consuming new or recycled PGM is a moot point. We have seen over the last 20 years virtually all new cars being in effect rented because people cannot get the finance when mortgaged up to the hilt. Many people continue to want a new car partly because they want to show off and are fearful of repair bills from second hand.
Our incompetent Chancellor recently, haplessly addressing the cost of living crisis, reduced the cost of fuel slightly, despite it providing no relief for non car owners and contravening climate change commitments which we all knew were BS.
There really is not even the remotest chance that we will avoid mass( minumum 1 bn humans)death from flooding and starvation arising from climate change - not to mention the loss of habitat and species of animals and plants.
While we are pi**ing about with electric cars the UK along with most countries are spewing CO2 into the atmosphere in growing quantities.
There is no solution to this problem as insufficient country's will come off the population growth/ economic growth /globalisation / habitat destruction/ global catastrophe bandwagon.
Any challenges to this gloomy weekend post most welcome

extract from rns 16.12.21
"Cost inflation continues to be effectively managed, supported by contractual pass through."

I agree that unlikely to be significant damage to turnover as long as confined to present combatants. However sentiment is a different matter especially for investors with short time horizons. Certainly an element of dash to cash in the market.
Last year our results were on 13 April and will be great for 2021. Clearly the fwd looking statement will be material especially if the conflict widens. Already Finland has been mentioned but seems unlikely to me as the Russians will be bogged down in Ukraine for at least 12 months.

thanks for your replies - I personally don't want a divi

What do posters think about the possibility of a dividend for 2021?
I hadn't really expected one but would be a pleasant surprise.
A 1p divi would only cost around £6m and would put SRC on the radar of income funds and the wider market.
I know the Company focus is to use cash generation to buy businesses but a £6m divi would not make much of a dent in the cashpile.

Further to 3 directors announcing buys on 6th and 10th Jan........."Furthermore, on 12 of January 2022, Paul Gustavsson, ExCo for Nordkalk, purchased 25,000 Ordinary Shares at a price of 99 pence per share".