Sigmaroc FY earnings look set to beat expectations

Construction materials group Sigmaroc said on Thursday that the strong trading seen at the time of its December update had continued through the end of the financial year.

As a result, SigmaRoc now expects to report final results ahead of current market expectations, with full-year consolidated unaudited group revenues up about 77% to roughly £124.0m and underlying earnings of approximately £23.8m, a 64% year-on-year increase.

The AIM-listed group added that its continued focus on cash management, together with the positive trading momentum, had resulted in "good operational cash generation" for the year, with adjusted leverage at 31 December of 1.7x and a year-end cash position of £27.4m.

Sigmaroc added that it had seen "encouraging market conditions" in the latter part of 2020 across all of its businesses, with particularly strong demand for its RMI and infrastructure products continuing into the early part of 2021.

Chief executive Max Vermorken said: "Despite a very challenging backdrop we were able to deliver excellent financial results and continued strategic progress in 2020, thanks to nearly 1,000 dedicated colleagues, a good business model and the support of our shareholders.

"Whilst we remain mindful of the backdrop, we have started 2021 well, with progress on all fronts, be it trading, acquisitions, development of our footprint or the continued operational response to Covid-19. Our confidence in the longer-term prospects for the Group remains very high and we look forward to taking further positive steps in our development this year."

As of 1120 GMT, Sigmaroc shares were up 8.29% at 69.85p.