SigmaRoc (SRC) CMD 2025 summary

Strategic Vision and Business Model

• Aims to build Europe's leading minerals platform, focusing on lime and limestone, with ambitions to be the preferred partner for customers, employees, and shareholders.

• Business model centers on predictable and growing free cash flow, driven by diverse end-markets, owned assets, and a flexible cost structure.

• Emphasizes decentralised operations, empowering local managers and leveraging key regional hubs for efficiency and growth.

• Differentiates from typical construction and specialty chemicals businesses by combining high barriers to entry, stable input costs, and limited CO2 concerns.

• Focuses on operational excellence, successful integration of acquisitions, and continuous improvement to drive synergies and margin expansion.

Financial Performance and Targets

• FY24 proforma revenue reached £1,042m, with a 23.2% EBITDA margin and 23% EPS CAGR from FY17-24.

• 2030 targets: 3-5% organic revenue growth, EBITDA margin above 24%, cash conversion rate over 50%, leverage between 1.5-2.0x, and ROIC above 15%.

• Q1 2025 revenue and EBITDA grew 18.3%-18.6% and 30.4% year-on-year, respectively, with EBITDA margin up 180bps to 19.4%.

• Focuses on value creation by acquiring assets in fragmented markets and extracting efficiencies.

• Strong free cash flow supports disciplined M&A, organic investments, and potential capital returns, with over £500m capacity over five years.

Market Outlook and Growth Drivers

• Positive outlook for total volumes, supported by megatrends such as energy transition, electrification, and environmental protection.

• German stimulus and EU infrastructure investments expected to provide further upside.

• Projected 1.3% volume CAGR across lime, limestone, and aggregates from 2024-2030, with lime volumes up 2.0% and construction aggregates up 1.4%.

• Growth in steel, metals, pulp & paper, and construction segments, with green transition and lithium demand as key drivers.

• Structural mega trends include decarbonisation, e-commerce, and critical minerals demand.