A trading update issued to the London Stock Exchange shows that in the 11 months ended 30 November 2020; the London, England-headquartered Group recorded consolidated unaudited revenue of £114 million, representing an increase of 78% over the equivalent period in 2019.
Earlier this year, SigmaRoc reported that the combination of improving demand and a highly effective operational response to the COVID-19 pandemic had seen an encouraging performance recovery across all of its businesses, starting in May and continuing into the third quarter of 2020. This trend continued through the second half and was supported by the Group's ongoing commercial and operational enhancement initiatives.
While the further lockdown restrictions implemented in recent weeks, associated with the second wave of COVID-19, reinforced an element of uncertainty over the outlook, SigmaRoc says it has 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 Group is also optimistic as to the potential normalising market conditions in 2021. It has been buoyed by the UK Government's commitment to infrastructure investment as part of its COVID-19 recovery strategy.
SigmaRoc has continued to focus on cash generation to minimise risk and retain the capacity to make further progress strategically. As at 30 November 2020, the Group had unaudited cash and cash equivalents of £14.5 million, after paying the cash consideration for the acquisition of the remaining 60% equity interest in GDH (Holdings) Ltd at the end of the third quarter.
Also, to take advantage of further opportunities that the current economic climate is offering, SigmaRoc has announced a proposed equity issue, to raise approximately £12.4 million, which will allow the Group to accelerate the execution of its identified near-term acquisition and investment pipeline.
David Barrett, chairman of SigmaRoc, said: "I am very pleased by the results the Group has achieved in an exceptionally difficult period and look forward to closing out the year well ahead of where we expected to be in April and May. I am very proud of the SigmaRoc team and our ability to execute our strategy in spite of such difficult circumstances."
Max Vermorken, chief executive officer of SigmaRoc, added: "The Group's performance for the 11 months to 30 November 2020 is very strong given the context and risks we faced. We have continued to demonstrate that a decentralised business model focused 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."
