Gold prices bounce off 3-week lows; demand likely longer term
Investing.com -- Shares of Sigmaroc PLC (LSE:SRC) remained unchanged today after the company announced its full-year 2024 results, which surpassed expectations. The company reported a significant 72% increase in revenues to £988 million, attributed largely to the acquisition of CRH (NYSE:CRH) lime assets.
Despite a pro-forma like-for-like decline of 2%, the results showcased resilience with a 90% jump in adjusted EBITDA to £225 million, slightly above the guidance of £222 million and consensus estimates of £221 million.
The construction materials group also saw a modest increase in earnings per share (EPS), which rose by 2.8% to 8.35p, outperforming the consensus forecast of 7.6p. Analysts view these results as a strong performance against a backdrop of weak demand in Europe.
A key focus for the company has been reducing its debt, with leverage ending the year at 2.1 times, improved by the disposal of Belgian and French readymix assets worth €49.5 million. Management has expressed a firm commitment to further deleveraging, targeting a leverage ratio of 1.5 times by the end of 2025.
Additionally, Sigmaroc appears to be well-positioned to benefit from the upcoming German fiscal stimulus, with 26% of its pro-forma revenues generated in Germany, a country poised to significantly increase infrastructure and defense spending.
The proposed €500 billion fund for German infrastructure is expected to be signed into law by March 25, which could enhance demand for construction and steel, sectors in which Sigmaroc, through its subsidiary Fels, is deeply involved.
Stifel, a brokerage firm, commented on the company’s prospects, stating, "We initially identified upside in the shares for the strength of cash flow and excellence in execution. Exposure to German fiscal expansion is meaningfully incremental to the investment case set out in our February initiation."
This article was generated with the support of AI and reviewed by an editor. For more information see our T&C.