H1 revenues totalled £469m (H1 2023: £290m), up 62% year-on-year (YoY), reflecting the contribution from acquisitions of lime operations from CRH. Underlying EBITDA was £100m (H1 2023: £55m), up 82% YoY and ahead of budget.
SigmaRoc CEO Max Vermorken commented: “2024 is a year of profound transformation as we complete the three phases of the CRH acquisitions as we build a leading industrial and construction minerals platform with a focus on lime and limestone.
“On a proforma basis the group sees its earnings per share expand again. Given how busy the teams have been with the integration of several new businesses, a demanding synergy programme, while also navigating mixed market conditions, this is an outstanding result.
“The integration of the group is progressing smoothly. We thank our new colleagues for the warm welcome we have received as new owners and appreciate the shared enthusiasm for building a unique European minerals platform."
Trading evolved in line with trends seen in 2023. The group says its diversified model and end market exposure allowed it to take advantage of certain tailwinds and mitigate the headwinds, delivering trading modestly ahead of budget, along with improved EBITDA margins.
The group gave a breakdown of the performance of its different business segments:
Industrial Minerals markets (42.3% of H1 2024 group revenues: H1 2023 30.3%) – Overall performance in line with budget with good volume development. Generally robust sector but demand in the paper and pulp segment was initially impacted by strike action which has now ended. Some early signs of softness in automotive demand may impact steel in the next two to four quarters.
Environmental and agriculture markets (17.4% of H1 2024 group revenues: H1 2023 12.5%) - Good volume development in food and water purification segments, while poor weather led to higher than usual wind energy generation and reduced demand from the power generation sector. Some of these trends are expected to continue in the short term.
Construction markets (40.3% of H1 2024 group revenues: H1 2023 57.2%) – Infrastructure applications, which represent around 65% of the group’s construction market revenues, saw robust demand in both the UK and Continental Europe. As expected, residential markets remained soft throughout the Period. The group was effective in re-focusing local market resources to increase infrastructure weighting
In terms of outlook, SigmaRoc says trading conditions in Europe present both head and tailwinds which the board is actively managing.
The company adds: "A rebound in residential construction has not yet materialised given prevailing high interest rates and relatively low new planning applications. Industrial minerals will see areas of outperformance and possible challenges in relation to expected softness in automotive demand. Environmental markets have been consistently strong in the food and agricultural segments, with weather-related pockets of lower demand in power generation.
"The board remains confident in the group’s ability to deliver on the completion and integration of the Polish assets, and to continue to build on SigmaRoc’s position as a European leader in lime and limestone."
