SigmaRoc reports 72% revenue surge to £998m in transformational year
Why we think this is good
SigmaRoc has delivered a strong financial performance in 2024, with significant growth in revenue and underlying profitability. The 71.9% increase in revenue to £997.6m, coupled with a 92.4% rise in underlying EBITDA to £224.6m, demonstrates the company's successful execution of its growth strategy. While organic growth is not explicitly stated, the proforma revenue decline of 1.9% suggests some challenges in like-for-like performance. Margin improvements, with underlying EBITDA margin expanding by 240bps to 22.5%, indicate effective cost management and synergy realization from acquisitions. The company has also shown improved cash generation, with free cash flow up 152.3% to £118.6m and better conversion rates. However, it's important to note the substantial increase in net debt to £509.5m, primarily due to acquisitions, which introduces some financial risk. The company's outlook remains cautiously optimistic, citing potential improvements in European markets and supportive industry trends. The share price trading at its 52-week high suggests market confidence in the company's strategy and performance. Despite some headwinds and economic uncertainties, SigmaRoc's overall financial health and strategic positioning appear robust. While there's no explicit 'trading in line' statement, the performance exceeding consensus expectations supports a 'GOOD' sentiment score.
Key Points
- Revenue increased 71.9% to £997.6 million, but proforma revenue declined 1.9% like-for-like
- Underlying EBITDA rose 92.4% to £224.6 million
- Underlying EBITDA margin improved by 240bps to 22.5%
- Free cash flow up 152.3% to £118.6 million
- Net debt increased to £509.5 million due to acquisitions
- Underlying EPS grew 2.8% to 8.35p, ahead of consensus
- Completed transformative acquisitions in European lime and limestone sector
- Positive outlook with cautious approach to macroeconomic uncertainties
- Revenue to market cap ratio of 0.94 suggests reasonable valuation compared to sector
Summary
SigmaRoc plc has reported strong financial results for the year ended 31 December 2024, marking a transformational period for the company. Revenue surged 71.9% to £997.6 million, while underlying EBITDA increased by 92.4% to £224.6 million. However, proforma revenue declined by 1.9% on a like-for-like basis, indicating some organic growth challenges. The company's underlying EBITDA margin improved by 240 basis points to 22.5%, demonstrating effective cost management and synergy realization. Free cash flow saw a significant boost, rising 152.3% to £118.6 million. However, net debt increased to £509.5 million due to acquisitions. SigmaRoc completed several strategic acquisitions, positioning itself as a leading European lime and limestone business. The company maintains a positive outlook, citing potential improvements in European markets and supportive industry trends, while remaining cautious about the broader macroeconomic environment. Underlying EPS grew by 2.8% to 8.35p, ahead of consensus expectations. Compared to industry peers, SigmaRoc's revenue to market cap ratio of 0.94 suggests it's not overvalued, though a full PE ratio comparison is not possible without complete industry data.