Latest News

SigmaRoc raises funds to accelerate investments, trading ahead of expectations

0

SigmaRoc PLC (LON:SRC) said it has raised £12.4mln in funds to “accelerate” its near term acquisition and investment pipeline as the construction materials group said it is continuing to perform strongly despite the environment created by the coronavirus (COVID-19) pandemic.

The AIM-listed firm said it has raised the cash through the issue of around 24.3mln new shares at a price of 51p each, a 3.3% discount to its closing price on Tuesday.

WATCH: SigmaRoc delivers ‘strong’ half year results thanks to ‘resilient business model’

“I am delighted by the significant backing received from investors, which saw our fundraising target substantially over-subscribed. This support is a strong endorsement of our continuing strategy to develop a regionally-focused construction materials group of scale.  Through careful management, and a robust business model, we have demonstrated our ability to successfully manage this economic downturn, showing ourselves adept at increasing profitability in specific business units using local market knowledge and leveraging the strengths and capacity of the wider group. We are now well placed to take advantage of opportunities which we have identified and which increasingly present themselves to us, in order to continue delivering increased value for our shareholders”, SigmaRoc chief executive Max Vermorken said in a statement.

“This fundraising will provide the Company with the additional financial firepower to act quickly and decisively on a number of acquisition and capital deployment opportunities, and I look forward to updating shareholders on our progress in due course”, he added.

Announcing the launch of the placing on Wednesday morning, SigmaRoc said after establishing a “firm operational platform to manage risks posed by the pandemic”, it has now developed an investment pipeline of bolt-on acquisition and small expansion investment opportunities and that the proceeds from the placing will “accelerate its strategic development by executing on opportunities from within this pipeline”.

Trading ahead of expectations

In a separate announcement, the company reported that for the eleven months to November 30 revenues had risen 78% year-on-year to £114mln, “significantly ahead of current market expectations”, while its results for the full year are also expected to be “comfortably ahead” of forecasts.

SigmaRoc said recovery trends across its business have continued through the second half of its current year and have been supplemented by what it said were its “ongoing commercial and operational enhancement initiatives”.

“Whilst the further lockdown restrictions implemented in recent weeks, associated with the second wave of COVID-19, reinforce an element of uncertainty over outlook, they have not materially impacted either the Group’s operations or short-term customer demand. As a result, the board currently expects to deliver results for the year ending 31 December 2020 ahead of current market expectations”, the company said.

SigmaRoc also said it will also repay £250,000 in funding assistance received from the UK government, while looking ahead it is “optimistic” around normalising market conditions in 2021 as well as the government’s commitment to infrastructure investment as part of an economic recovery strategy.

“The group’s performance for the eleven months to 30 November 2020 is very strong given the context and risks we faced. The group has continued to demonstrate that a decentralised business model focussed on local markets is a robust approach in our industry, particularly in challenging times. The group is supported by a solid asset base and will continue to confront all challenges head-on while executing on its buy-and-build strategy to deliver further shareholder value”, Vermorken said.

SigmaRoc shares were up 6.1% at 56p in late-afternoon trading on Wednesday.

–Adds results of fundraising and updates share price–

ANGLE says peer-reviewed journal published data demonstrates Parsortix system performance

Previous article

Learning Technologies helping talent shine through in a digital age

Next article

You may also like

Comments

Leave a reply

Your email address will not be published. Required fields are marked *

More in Latest News