SigmaRoc - strong First-Half Trading Update gives ongoing confidence, I set a new Target Price at 140p, shares now 113p

Mark Watson-Mitchell
Jul 24
3 min read

24.07.2025

This morning, SigmaRoc (LON:SRC), the Northern European lime and minerals group has revealed its First-Half Trading Update for the six months to end-June.

The Business

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

The principal activity of the Group is the production of lime and minerals products.

The group's aim is to create value for shareholders through the successful execution of its strategy in the lime and minerals sector.

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

It de- risks its investments through the selection of projects with strong asset backing.

Trading Update

Despite some general volume weakness, pockets of volatility in specific end-markets, and the exiting of some low-margin volume, it showed a better-than-expected performance.

It reported year-on-year revenues up 13% to £510.0m (£450.0m), with an impressive 22% improvement in the group’s underlying EBITDA at £118.0m (£97.0m) and an even better 44% increase in underlying earnings at 4.6p (3.2p) per share.

Management Comment

CEO Max Vermorken stated that:

"The Group has performed well, delivering solid results against a challenging backdrop.

Market recovery - whether from German stimulus or improved sentiment - has yet to materialise, particularly in residential construction.

Weather disruptions and customer shutdowns have kept volume trends broadly unchanged from Q1, with additional customer specific challenges also impacting performance.

Strong regional performance in the UK, Ireland, the Nordics, and Poland are encouraging, while Germany remains subdued.

Following a robust first half, we enter our seasonally stronger half with cautious optimism.

We remain focused on driving forward our strategic priorities, supported by improvements in market conditions."

Broker’s Views

Analysts Andy Hanson and Charlie Williams, at Zeus Capital, have reiterated their Buy rating on the group’s shares, with a 158p Target Price.

Their estimates for the year to end-December, are for revenues of £1,092m (£997.6m) with adjusted pre-tax profits of £140.8m (£117.6m), increasing earnings to 9.2p (8.3p) per share.

For 2026, they look for £1,147.7m sales, £165.0m profits, generating 10.7p earnings per share.

Jumping forward to 2027 the analysts see £1,182.1m turnover, £178.4m profits, and earnings of 11.5p per share.

Analysts Adrian Kearsey and Kate Middleton, at Panmure Liberum, is obviously impressed with the group’s prospects, rating its shares as a Buy, whilst boosting its Target Price from the previous 120p a share to a revised 198p!

The brokers estimate £1,046m sales this year, £1,096m next year and £1,147m in 2027, taking pre-tax profits from £146.2m to £161.8m and then up to £175.9m in 2025,2026, and 2027 respectively.

In the same time span, they foresee earnings progressing to 9.4p by the year-end, then 10.4p next year and up to 11.4p per share in 2027.

The analysts consider that SigmaRoc has transformed from a nimble-but-cyclical building materials supplier into a specialist mineral business with “compounding” characteristics.

They also note that given the cash generative nature of the limestone and lime assets, the group is well placed to finance bolt-on acquisitions through internally generated resources.

My View

After the AGM Trading Update in early May I featured the group’s shares, yet again, and stated my view that:

“There is a certain confidence in the group’s ability to make further progress in the current year and beyond.

It is a proven business model that is showing that further success is due.

Its shares at just 93p offer even more upside.”

After today’s Trading Update and ahead of the Interims being reported on Monday 8^th September, I set a new Target Price at 140p for the shares, now 113p.