4th Feb 2021 11:08
(Alliance News) - Shares in SigmaRoc PLC rose on Thursday after the construction materials firm said it expects its earnings for 2020 to exceed market expectations as well as figures reported for 2019.
The stock was trading 8.3% higher at 69.85 pence each on Thursday morning in London.
SigmaRoc said it expects revenue for 2020 at around GBP124 million, up 77% from the GBP70.4 million recorded a year earlier.
Earnings before interest, tax, depreciation and amortisation are expected to be around GBP23.8 million, up 64%.
The London-based company credited the improved performance to encouraging market conditions in the latter part of 2020 across all of its businesses, with particularly strong demand for its repair, maintenance and improvement products as well as its infrastructure products.
Turning to current operations, it noted the strong demand has continued into 2021. It added that to date, all of its sites remain operational except the sites at Les Vardes and Monmains which are closed temporarily due to a lockdown in Guernsey.
Looking ahead, the company said: "The strong cash generation in 2020, together with the net proceeds of the GBP12.4 million equity raise and the new GBP125 million credit facilities entered into in December, mean the group is well positioned to accelerate its strategic development in 2021, as opportunities present themselves."
As at December 31, 2020, the company had cash of GBP27.4 million, up from GBP9.9 million on the same date in 2019.
SigmaRoc Chair Max Vermorken added: "Whilst we remain mindful of the backdrop, we have started 2021 well, with progress on all fronts, be it trading, acquisitions, development of our footprint or the continued operational response to Covid-19. Our confidence in the longer term prospects for the group remains very high and we look forward to taking further positive steps in our development this year."
By Ife Taiwo; [email protected]
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