SigmaRoc PLC (LON:SRC) saw its financial results for 2019 highlight strong growth and, whilst acknowledging challenges presented by the coronavirus (COVID-19) pandemic, the ‘buy-n-build’ construction materials firm said it looks forward with optimism.
In its 2019 results statement, the group reported that its underlying revenue increased by 70% to £70.4mln in the twelve months ended December 31, up from £41.2mln in 2018.
Meanwhile, the group's underlying earnings (EBITDA) improved to £14.5mln from £9.8mln and underlying pre-tax profit came in at £8.4mln versus £5.5mln in the preceding year. Net profit was reported at £7.9mln, versus a £6.1mln loss in 2018.
READ: Sigmaroc earnings more than double in Q1
Among the operational highlights SigmaRoc pointed to the completion of four acquisitions during the year and noted the opening of new ready-mix operations at Ronez in Jersey in February 2019.
Its footprint expanded to over 30 production sites and the company said it now it has close to 1,000 employees.
"I am extremely proud of our continued progress and believe we are well-positioned to successfully manage the challenges presented to our business by the COVID-19 pandemic,” said SigmaRoc chairman David Barrett.
Chief executive Max Vermorken, meanwhile, described 2019 as “an excellent” year.
"Looking forward, we have the COVID-19 crisis to navigate,” he said.
But added: “The group is well prepared to confront the potential consequences of the crisis and to then continue its growth story, thanks to the resilience of its great workforce and supportive unions.
“I am therefore optimistic about what we can achieve in the months ahead of us this year and beyond."
City stockbroker Liberum Capital, in a note to clients, repeated a ‘buy’ recommendation on SigmaRoc with a target price of 60p.
In early trading, SigmaRoc shares were 11% higher at 38.49p.
Jacques Emsens and Simon Chisholm join board
In a separate statement, the company announced the appointment of Jacques Emsens, described as a “renowned industrialist”, to the board as an independent non-executive director
The company noted that Emsens was instrumental in building SCR-Sibelco into a world leading materials solutions company – it was founded by the Emsens family and by 2018 achieved €3.5bn of revenue.
At the same time, the company has appointed Simon Chisholm as independent non-executive director and Dean Masefield – who has been with the company since 2017 – has now been named as an executive director and chief financial officer.
Masefield was previously financial director for the Ronez platform and then became deputy CFO last year.
Barrett, in a statement, said: "We would like to extend a very warm welcome to Jacques and Simon upon their appointments to the board and congratulate Dean on his promotion to CFO and board member.
“Each party brings valuable and relevant expertise to the group and we look forward to their contributions as we continue our buy and build growth strategy."