Upbeat market update from owner of Ronez

Covering the year ending 31 December 2020, the company said strong trading performance set out in its update of 9 December last year continued through the end of financial year.

‘As a result, SigmaRoc expects to report final results ahead of current market expectations, with consolidated unaudited group revenues of approximately £124m., representing a 77% increase on the previous year,’ said the update.

A key metric of performance, EBITDA, stood at approximately £23.8m., a 64% increase on the previous year.

Good operational cash generation for 2020 was also reported thanks to continued focus on cash management and positive trading momentum.

‘The group’s year-end cash position was £27.4m., benefiting from the net proceeds from the equity raise in December 2020 of approximately £12m.,’ said the company.

Encouraging market conditions in the latter part of 2020 had also continued into the early part of 2021 – with all of its sites operational bar those at Les Vardes and Monmains which temporarily closed in line with lockdown in Guernsey.

‘Financially the group remains on target and operationally the group continues to maintain robust and comprehensive safe working procedures which have resulted in good production volumes across all sites in January,’ said SigmaRoc.

‘The enhanced platform for the group created in 2020 provides a strong base for further progress in 2021.

‘The board is encouraged by governmental support to keep the construction sector open, but remains mindful of the continued risk and uncertainty posed by the pandemic, with both trading conditions and cash collection monitored systematically on a site by site basis.’

The business said it was ‘well positioned to accelerate its strategic development’ this year as opportunities presented themselves, thanks to strong cash generation in 2020 plus the equity raise and new £125m. credit facilities entered into last December.

'It has generated real momentum'

SigmaRoc has been congratulated on its performance by the chairman of Bailiwick Investments Ltd, which has a 7.43% holding in SigmaRoc. BIL participated in SigmaRoc’s fundraise last December, acquiring just over 1.8m. shares at 51p per share.

‘Four years ago, Bailiwick Investments participated as a leading investor at the launch of SigmaRoc. It is fair to say that at that time SigmaRoc, which only owned the Ronez businesses in Guernsey and Jersey, was viewed as a solid but pretty unexciting investment.

‘However, in the last two years in particular, it has generated real momentum and after a number of strategic acquisitions in England, Wales and Belgium, it is now viewed by analysts as a dynamic, asset-backed construction company with a bright future. It has certainly strengthened Bailiwick’s diverse portfolio of assets,’ said BIL chairman Sir Geoffrey Rowland.

BIL is an investment company, quoted on The International Stock Exchange, with a substantial percentage of Channel Islands-based shareholders. It principally invests in businesses, property and assets situated in, registered, headquartered or managed from the Channel Islands, or in relation to which through the involvement of Channel Islands businesses or individuals, resident in the Channel Islands, there is a material Channel Islands interest.