Sigmaroc. Regulatory News (SRC)

20 October 2021

(EPIC: SRC / Market: AIM / Sector: Construction Materials)

SIGMAROC PLC

 ('SigmaRoc', the 'Company' or the 'Group')

Trading Update

SigmaRoc (AIM: SRC), the AIM quoted buy-and-build construction materials group, is pleased to update the market on its trading performance during the third quarter of 2021.

Trading

Further to the update provided at the time of its interim results, on 23 August, the Board is pleased to report that the strong trading performance seen during the first half, continued through the third quarter. As a result, the Group generated revenues of £73m in the three months to 30 September 2021. 

Sustained demand across the Group's broad range of geographical and product markets, together with effective management of the challenging supply chain environment, resulted in all platforms delivering Q3 results in line with management's expectations. In addition, following receipt of regulatory clearances in Poland, the Group completed its acquisition of Nordkalk Oy Ab ("Nordkalk") on 31 August 2021. The integration of Nordkalk into the Group is progressing well, with the business trading as expected through the period.

Outlook

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

Recent and ongoing increases in energy costs are being seen across all industries, and the availability of haulage and transport is also presenting challenges, particularly in the UK. The Group is keeping these challenges constantly under review, and steps have been taken to mitigate these, 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 our own heavy goods vehicles and drivers. 

The outlook for the Group for the remainder of the year remains positive, with the sustained demand seen across our businesses expected to continue into the fourth quarter. Supply chain and inflationary pressures are being managed effectively, with the benefit of the Group's diversified platform model enabling local market-specific plans to be implemented.

Max Vermorken, CEO commented:

"The third quarter has delivered solid results, building on our momentum from the first half of the year. 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.

Information on the Company is available on the Company's website, www.sigmaroc.com.

The information contained within this announcement is deemed by the Company to constitute inside information as stipulated under the Market Abuse Regulations (EU) No. 596/2014. Upon the publication of this announcement via Regulatory Information Service, this inside information is now considered to be in the public domain.