SigmaRoc (SRC) Trading Update summary

Financial performance

• H1 2025 revenues rose 13% year-on-year to £510m, with underlying EBITDA up 22% to £118m and margin improving to 23.1%.

• Underlying EPS expected to exceed 4.6p, a 44% increase from H1 2024.

• Effective cash management reduced covenant leverage to 2.0x.

• Pro-forma H1 revenues dipped 1% due to lower volumes, but EBITDA increased 2% through synergies and cost control.

• Core volumes fell about 3% amid construction and steel market softness and temporary headwinds.

Operational highlights and synergies

• Commercial synergies, plant utilisation, and mix optimisation contributed £7-8m; operational initiatives added £5-6m in cost savings.

• Total net synergy delivery exceeded £13m in H1, with full-year synergy delivery expected above previous guidance.

• Headcount reduced by approximately 6% as part of cost-saving measures.

• Synergy program continues to drive margin improvement and is expected to deliver further benefits as volumes recover.

• Cash generation remained strong, supporting reduced leverage.

Market and segment performance

• Industrial minerals (32% of H1 revenues) remained soft, impacted by customer maintenance shutdowns.

• Environmental and agriculture (23% of H1 revenues) saw good demand in water purification and flue gas treatment, offset by delayed agricultural season.

• Construction (45% of H1 revenues) was stable in infrastructure but subdued in residential, with no clear recovery in key regions.

• Regional performance was strong in the UK, Ireland, Nordics, and Poland, while Germany remained subdued.

• Market diversification and mix optimisation helped offset challenging macroeconomic conditions.