Like-for-like (LFL) revenue grew by 2% and underlying EBITDA by 10% despite a 4% volume decline, which is said to reflect the Group’s strong market position, pricing power, and differentiated operational model with diversified end markets.
SigmaRoc placed a continued emphasis on operational efficiency, with £4 million of annualised profitability gains delivered across the Group, enabling further underlying EBITDA margins improvement to over 20%, demonstrating the Group’s pricing power.
A stronger backdrop for infrastructure projects and industrial markets partially offset subdued demand in residential construction markets.
SigmaRoc reports that its leadership in local markets and continued focus on service excellence supported a dynamic pricing approach, which largely offset the impact of inflation throughout the year.
In November 2023, SigmaRoc agreed to acquire CRH’s European lime and industrial limestone assets, transforming the Group into a leading European producer.
SigmaRoc deployed £32 million to acquire six businesses in 2023, generating £8 million EBITDA across the UK, Belgium, France, and the Nordics. These businesses have all been successfully integrated and generate proforma 2023 EBITDA of £10 million.
The group's capital expenditure of £33 million includes £5 million for quarry development, which will contribute to around 175 years of mine life at CDH and Ronez.
The year also saw SigmaRoc successfully develop a new asphalt plant in Llandarcy, with the first commercial sales commencing in March 2024.
SigmaRoc also successfully commissioned its Aqualung carbon capture technology in Sweden, ongoing deployment of biofuels across the network, and partnership formed with Materials Evolution to further decarbonise concrete product offerings in line with the Group’s ESG strategy
SigmaRoc says its integration of CRH European lime and industrial limestone assets is progressing well. The Board is confident that once integrated, the Group will begin delivering previously outlined synergies, enhancing cash flows, and reducing leverage.
Max Vermorken, SigmaRoc CEO, said: “2023 is another year where SigmaRoc delivered performance ahead of expectations in challenging market conditions. We have demonstrated resilient trading, growing revenue, EBITDA, and EPS while managing the balance sheet to deliver reduced year-end gearing despite the growth and continuing investment in the business.
"The strategic initiatives we launched in the year are all contributing, with the transformational acquisition of European lime assets that creates Europe’s leading lime business completed immediately post year-end with the integration of these assets progressing in line with our expectations.
“We continue to innovate in our business. We are well set up with our enlarged footprint and focus on lime to benefit from long-term drivers across the industrial, construction, and environmental markets. The transition to a green economy will drive investment in critical infrastructure, with lime an essential component of every aspect of this investment.
“2024 has started well, and I look forward to updating the market on what I expect to be another year of progress as Northern Europe’s leading lime operator.”
