SigmaRoc (SRC) H1 2024 earnings summary

Executive summary

• Achieved strong H1 2024 results with underlying EBITDA of £100m, up 82% year-over-year, and margin improvement to 21.3% driven by operational efficiencies and integration of major lime acquisitions in Germany, Czechia, Ireland, UK, and Poland.

• Integration of recent acquisitions is ahead of schedule, with all entities under unified reporting structures and a synergy program target raised to €35m–€60m by 2027.

• Strong performance underpins confidence in full-year expectations, with a revised net zero roadmap in progress.

• CFO succession announced, with Jan Van Beek to succeed Garth Palmer in 2025.

• Portfolio rationalisation and disposal of non-core assets under consideration.

Financial highlights

• 1H24 revenue £469m, up 60% year-over-year; EBITDA £100m, up 82% year-over-year; underlying profit before tax up 50% to £49.1m.

• EBITDA margin increased to 21.3%, up 240bps year-over-year.

• Underlying EPS 3.2p, down 20% year-over-year; proforma EPS 4.3p, up 6.5%.

• Free cash flow conversion at 43%; leverage reduced from 2.6x to 2.3x; net debt increased to £532.6m post-acquisitions.

• Revenue growth primarily driven by CRH lime acquisitions; organic revenue flat; proforma revenue and EBITDA down year-over-year due to lower input cost pass-through and softer volumes.

Outlook and guidance

• Full-year underlying EBITDA expected in line with consensus (£219.3m); revenue guidance at £1,060.0m.

• Positive start to H2 with robust demand in food, agriculture, mining, and infrastructure; residential construction remains weak but expected to recover as interest rates fall.

• Board's expectations for FY24 remain unchanged.