SigmaRoc PLC (LON:SRC) performed ahead of budget and analyst estimates during the first quarter of 2020 despite significant weather disruption and flooding across the UK and the Channel Islands, and the start of the coronavirus pandemic.
For the quarter, the construction materials company delivered revenue of £26.5mln, an 87% year-on-year increase, and unaudited underlying earnings (EBITDA) of £5.25mln, representing a 144% year-on-year increase.
The company said it has decided to remain active across its operations where it can ensure compliance with all applicable government welfare guidelines and where there is a clear strategic and financial case in the local market.
As required by local government instructions, SigmaRoc has had to close all but essential infrastructure maintenance operations in both Guernsey and Jersey for a period of 14 days. It is expected that a permitting system will be implemented in Jersey shortly, which will allow the reopening of accredited construction sites and in turn the group's operations.
In the UK, the company remains active across all sites, supplying product where doing so is an economically viable proposition for its customers. In this context, the company has decided to suspend some of its production capacity and supply from stock. In Wales, G.D Harries remains active across a number of civil engineering and road maintenance contracts, having reduced production and haulage capacity in-line with current local demand.
The company's Belgian businesses also remain operational, with the support of staff and unions, supplying bluestone to a reduced number of active customers. The company's partner in the sale of aggregates from its Soignies quarry has decided to close its production entirely until further notice. However, the company continues to supply customers from its other aggregate quarries near the town of Huy.
Nevertheless, the company expects substantially reduced revenue and EBITDA performance in the second quarter, relative to expectations prior to the onset of the coronavirus pandemic.
As at April 3, 2020, the company had £11mln in cash reserves and undrawn headroom of £5mln under its RCF facilities, providing a solid liquidity position from which to navigate through even a protracted period of disruption.