SigmaRoc – against challenging backdrop good Interims point the shares, now 116p, a great deal higher yet, TP 198p

08.09.2025

This morning’s Interim Results announcement from SigmaRoc (LON:SRC) reported good progress in its six months to end-June.

The £1.26bn-capitalised group, which is now a big player in the European lime and minerals sector, saw its shares hit 126.20p a couple of weeks ago, since when they have eased back to 116p.

Upon looking at the Interims, I take the view that this group’s shares now 116p are destined to climb a great deal higher.

Key Resources

Lime and limestone are key resources in the transition to a more sustainable economy.

New applications for lime and limestone products, as part of a drive for sustainability, include the production and recycling of lithium batteries, the decarbonisation of construction including through substitution of cementitious material, and environmental applications including lake liming, air pollution and direct air capture.

The Business

SigmaRoc invests in and acquires businesses operating in the lime and minerals sector.

The group looks to create value by purchasing assets in fragmented markets and extracting efficiencies through active management and by forming the assets into larger groups.

It seeks to de-risk its investments through the selection of projects with strong asset backing, then implementing operational efficiencies that improve safety, enhance productivity, increase profitability.

The Interims

The group’s interim results for the six months to end-June, reported a strong first-half performance.

The group’s statutory revenue increased by 13.4% year-over-year to £510.3m, while its EBITDA rose 36.9% to £108.8m, with an EBITDA margin of 21.3%, up 370bps.

The pre-tax profit increased significantly by 61.8% to £39.5m, while its earnings per share increased 873.9% to 2.24p.

Underlying results showed EBITDA up 21.2% to £117.8m, with an EBITDA margin increase of 150bps to 23.1% and EPS up 51.8% to 4.66p.

Net debt decreased 6.4% to £498.4m, while free cash flow increased 37.9% to £61.9m.

The company stated that it expects synergies for 2025 to exceed guidance, reaching at least £21m.

Management Comment

CEO Max Vermorken stated that:

"The Group has performed very strongly in a challenging market backdrop and demonstrates again how skilled the local teams are.

Certain customers experienced disruptions or temporary shutdowns making the task even harder.

The market certainly did us no favours in the first half, a trend which is likely to continue in H2.

Looking at specific regions we saw strong performance in the UK and Ireland where the business really outperformed versus the general market.

Similarly, the Nordics region performed well generally while certain sectors including construction and paper have remained weak.

Poland had a strong start of the year but recent government changes have slowed the delivery of larger infrastructure projects.

The Belgian and German markets remained at historically low levels of demand, however, optimism seems to be returning resulting in higher mortgage applications. This should translate into a slow recovery in construction output into next year. 

Over the longer term we expect to benefit from normalisation of cyclical markets, supported by structural demand drivers in construction and steel.

The impact of the German infrastructure fund and a general increase in European defence spending will add to infrastructure demand from 2026 onwards.

In addition, the reconstruction of Ukraine will require significant volumes of lime, aggregates and building materials, and SigmaRoc is well positioned to contribute when this occurs.

Following a robust first half, achieved despite challenging market conditions, we enter the second half with cautious optimism. 

With 2.7bn tonnes of high-quality resource, essential to Europe's construction, industrial and environmental markets, SigmaRoc is well positioned to capitalise on increasing volumes when they occur. 

We remain focused on our strategic priorities and are confident in the Group's ability to capture the opportunities that lie ahead."

Broker’s View

At Zeus Capital, its analysts Andy Hanson and Charlie Williams have a Buy on the group’s shares, with a 158p Target Price.

For 2025, to end-December, they estimate revenues of £1,092.0m (£997.6m), with adjusted pre-tax profits of £140.8m (£117.6m), lifting earnings to 9.2p (8.3p) per share.

For 2026 they see £1.147.7m sales, £165.0m profits and 10.7p earnings.

Over at Panmure Liberum, analysts Adrian Kearsey and Kate Middleton also have a Buy out on the shares, but with a 198p Target Price.

They look for 2025 revenues of £1,033.0m, £146.2m profits, and 9.5p earnings.

Their 2026 estimates suggest £1,089.0m sales, £162.2m profits, and 10.5p earnings.

In My View

These shares are heading so much higher than the current 116p, with a gradual rise to 150p being an easy objective.

(Profile 04.09.20 @ 49p set a target Price of 65p*)

(Profile 26.07.23 @ 62.20p set a target Price of 80p*)

(Profile 24.07.25 @ 113p set a Target Price of 140p)

Asterisks * denote that Target Prices have been achieved since Profile publication.