SigmaRoc PLC (LON:SRC) is expecting a revenue jump of over 50% in 2018 as it issued a trading update alongside news of a refinancing of convertible loan notes (CLNs).
The construction materials group said that in the year ended 31 December it was expecting to report revenues of £41.2mln, 52% higher than the previous year while operating profits (EBITDA) would be in-line with market expectations.
READ: SigmaRoc acquires Foelfach quarry in Carmarthenshire and appoints new managing director
The company’s Ronez business, which is based in the Channel Islands and provides concrete products as well as other materials such as asphalt, was expected to deliver increased operating profits year-on-year.
Sigma’s PPG platform, which includes precast concrete firms Allen Concrete and Poundfield Products, had generated operation efficiencies since its creation and was starting to contribute to the top and bottom line of the group, with further improvements expected in 2019 as integration progressed.
Max Vermorken, chief executive of SigmaRoc, said the results were “testament” to the companies growth strategy.
The group also said it had received approval from over 75% of noteholders to purchase £10mln worth of CLNs, subject to entry into new banking facilities.
David Barrett, chairman, said the backing for the refinancing of the CLNs showed “further confidence” in the business.