SigmaRoc (SRC) Trading Update summary

Financial performance and outlook

• H1 2024 revenues reached £469m, up 62% YoY, driven by CRH acquisitions; underlying EBITDA rose 82% to £100m, with margins improving to 21.3% due to effective pricing and cost management.

• Pro-forma revenue declined 8% and underlying EBITDA fell 3% due to softer volumes and lower pass-through, but underlying EPS is expected to exceed 3.1p, with pro-forma EPS up over 5% YoY.

• Covenant leverage is expected below 2.6x, with pro-forma leverage under 2.3x; full-year outlook remains unchanged, in line with consensus expectations of £1,060m revenue and £219.3m EBITDA.

Acquisitions, integration, and synergy programme

• German, Czech, and Irish business acquisitions completed and fully integrated; UK lime acquisition completed in March 2024, with integration ahead of schedule.

• Polish anti-trust clearance received post-period, with completion expected by end of August 2024; integration and TSA exits for acquired businesses progressing smoothly.

• Synergy programme targeting EUR30–60m by 2027 is on track, with further updates expected at interim results.

Market trends and segment performance

• Industrial minerals contributed 42.3% of H1 revenues, with robust performance despite initial strike-related softness in paper and pulp and early signs of weaker automotive demand.

• Environmental and agriculture markets grew to 17.4% of H1 revenues, with strong food and water purification demand, but lower power generation demand due to weather.

• Construction markets accounted for 40.3% of H1 revenues; infrastructure demand was robust, while residential markets remained soft.