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SigmaRoc

SigmaRoc profits more than double in 2018

For the year ended 31 December, the construction materials group reported an underlying pre-tax profit of £5.5mln, 113.8% higher than the prior year

Ronez quarry
The surge in profits was driven by an upswing in the group’s Ronez division in the Channel Islands

SigmaRoc PLC (LON:SRC) shares jumped on Thursday after its 2018 profits more than doubled, with the company eyeing further expansion in 2019.

For the year ended 31 December 2018, the construction materials group reported an underlying pre-tax profit of £5.5mln, 113.8% higher than the prior year, while revenues jumped 52% to £41.2mln.

READ: SigmaRoc expands Welsh portfolio with purchase of stake in quarrying group GD Harries

Underlying earnings per share (EPS), meanwhile, increased 89.6% to 3.83p during the year with underlying earnings (EBITDA) up 78.5% at £9.8mln.

The surge in profits was driven by an upswing in the group’s Ronez division in the Channel Islands as well as initial contributions from concrete product makers Allen and Poundfield Products, which SigmaRoc acquired in 2017.

Looking ahead, the company’s chief executive Max Vermorken said sales had been “in line with expectations” for the first quarter of 2019 and that the company was looking to “further expansion” across the rest of the year.

Vermorken added that the company was aiming to complete its acquisition of the remaining 60% of Welsh quarrying group GD Harries (GDH) before the end of August, having purchased the initial 40% in April.

The company would also “continue to assess further opportunities to expand” over the next 12 months, Vermorken said.

The strong results bolstered SigmaRoc's share price in early deals, rising 2.8% to 46.8p.

Broker hails “impressive job”

In a note to clients, analysts at SigmaRoc’s ‘house’ broker Liberum said the company’s management had done “an impressive job” in devliering the increased profitability, adding that the company’s 2019 acquisitions, GDH and concrete products group CCP, had both enjoyed “a promising start” with improvement plans underway for both.

The broker also retained its ‘buy’ rating and 59p price target on the stock, saying that while the shares were currently “good value”, it expected a re-rating as the company’s “track record of improving businesses” stretched out further.

Quick facts: SigmaRoc

Price: £0.41

Market: AIM
Market Cap: £70.92 m
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