SigmaRoc PLC (LON:SRC) has reported strong earnings and revenue growth in the first half of its current year, adding that it has “good exposure” to further infrastructure spending and growth in the housing and repair, maintenance and improvement (RMI) markets.
In a trading update for the six months to June 30, 2020, the construction materials group said it has “delivered results ahead of its own expectations given the challenging trading environment”, reporting underlying earnings (EBITDA) of £10.9mln, up 91% year-on-year, while revenues climbed 83% to £54.5mln.
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SigmaRoc noted that its decentralised business model had allowed it to minimise the impact of coronavirus and maintain profitability, adding that it is convinced that it has “created a setup better capable of managing uncertainty, rapidly changing conditions and challenging working environments”.
Looking ahead, the company said it is now focused on maintaining strategic momentum, and as such it will “review opportunities to invest in support of its platforms where it believes there is the potential for significant value creation”. However, the company said it is still too early to provide accurate guidance for the remainder of the year given continued uncertainty over coronavirus.
"The group's performance across the first six months of 2020 is extremely strong given the context and risks we faced. As a group we have demonstrated again that a decentralised business model focussed on local markets works well in our industry and in challenging times. The group is further supported by a solid asset base. The group will continue to confront all challenges head-on to deliver further shareholder value", SigmaRoc chief executive Max Vermorken said in the trading update.
In a note on Thursday, house broker Peel Hunt reiterated their ‘buy’ rating and 70p target price on SigmaRoc, saying recent share price weakness “offers a great entry point for new investors” and they saw “clear upside risk” to the shares if current trading “remains as robust as it has been in the past six-to-eight weeks”.
SigmaRoc shares jumped 8% to 40.5p in late-morning trading.
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