Strong first-half results for SigmaRoc
Group enjoys continued improvement in trading performance despite challenging conditions
AIM-listed buy-and-build construction materials group SigmaRoc have reported a positive start to the year with revenue up 83% to £54.5 million for the six months to 30 June 2020, compared with the same period last year, while underlying EDITBA rose from £5.7 million a year ago to £10.9 million this year. Underlying EBITDA margins also improved to 20%, a net improvement on the prior year of 5%.
SigmaRoc said this solid performance – achieved despite the negative impacts of the COVID-19 pandemic – is explained by a return to stronger trading in May and June, cost reduction and operational efficiency projects, expansion of the Group’s product and service offerings, as well as some seasonality and foreign exchange effects.
Since February 2020, the Group has delivered a comprehensive and effective response to the COVID-19 pandemic, leveraging its decentralized and agile structure to allow each business and platform to implement specific forward-looking protocols; Government health and safety/social distancing measures; and continued dialogue to their local communities, unions, staff, customers, suppliers and service providers.
SigmaRoc said their preparation for COVID-19 has allowed them to stay operational throughout the crisis, where Government rules are permitted. As a result, the Group was able to deliver strong financial performance, keep its workforce safe from the virus and keep the majority of its personnel actively employed, to the benefit of the local economies it operates in.
Max Vermorken (pictured), chief executive officer of SigmaRoc, commented: ‘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 focused on local markets works well in our industry and in challenging times. The Group is further supported by a solid asset base and will continue to confront all challenges head-on to deliver further shareholder value.’
Notwithstanding the consistent recovery in activity levels since May, SigmaRoc said that it is still too early to provide accurate guidance for the remainder of the year given the continued uncertainty over the full impact of COVID-19 on the economy, as well as the scale and timing of Government support for spending in various construction market segments.
This position will be kept under review and reassessed when the Group publishes its first half-year results on 7 September 2020.