SigmaRoc (SRC) Trading Update summary

Financial performance

• Revenue rose 72% YoY to approximately £998m, driven by acquisitions; proforma revenue down 2% LFL due to FX and pass-throughs.

• Underlying EBITDA expected to exceed £222m, up 90% YoY; proforma EBITDA up 2% LFL.

• EBITDA margin improved to 22.3%, up 220bps YoY; underlying EPS around 8.3p, 10% ahead of consensus.

• FY24 covenant leverage expected below 2.1x; FY25 outlook unchanged.

Strategic developments

• Completed transformational acquisition of CRH's lime and limestone assets, doubling group size.

• Divested non-core Belgian and French concrete plants for up to €49.5m, with €37m received in Dec 2024.

• Advanced talks to replace bridge loan with longer-term facility at preferential rates.

• Board strengthened with two new independent non-executive directors.

Operations and market trends

• Resilient H2 FY24 performance despite challenging markets; diversified model offset residential and steel market softness.

• Industrial minerals (34.5% of revenue) and environmental/food markets (18.7%) showed resilience; construction (46.8%) driven by infrastructure, while residential remained soft.

• Proforma LFL volumes down 4% due to market environment.

• Ongoing initiatives in production efficiency, cost reduction, and organisational optimisation.