SigmaRoc Shares Surge 12% on Profit Growth and €110m Deal

SigmaRoc shares surged 12% following strong first-half results with improved profitability and the concurrent announcement of a €110 million acquisition of Lithuanian dolomite producer AB Dolomitas, according to an AskTraders report. The market response reflects investor approval of both expanding margins and disciplined balance sheet deleveraging amidst ongoing macroeconomic uncertainty.

"SigmaRoc delivered a strong first half, with improved profitability and continued deleveraging. Core volumes were modestly up year on year, a welcome outcome given the levels of uncertainty following the conflict in the Middle East," said Max Vermorken, Chief Executive, SigmaRoc, in a statement regarding the results.

Financial Performance and Margin Expansion

For the first half of the year, SigmaRoc reported revenue up 2.5% to £523.1 million, while underlying EBITDA increased 11.3% to £131.2 million. Profitability metrics improved notably, with underlying profit margins lifting 200 basis points to 25.1% compared to the prior period.

Underlying earnings per share rose 12.2% to 5.23p. Concurrently, the company's financial position strengthened as net debt fell to £462.6 million, driving covenant leverage down to 1.66x from 2.04x.

Terms of the AB Dolomitas Acquisition

As part of its expansion strategy, SigmaRoc agreed to acquire AB Dolomitas for €110 million. The Lithuanian dolomite producer generated €70 million of revenue and €18 million of EBITDA in its last financial year, adding established Baltic aggregates capacity to the firm's portfolio.

The transaction is subject to customary closing conditions and is expected to complete in the fourth quarter. This acquisition marks another step in SigmaRoc's buy-and-build strategy within the European lime and limestone sector.

Refinancing and Credit Facility Structure

To support ongoing operations and strategic transactions, SigmaRoc secured a new €825 million revolving credit facility led by BNP Paribas. The financing arrangement includes a €300 million accordion option and carries a maturity date of March 2031.

Credit facilities of this scale provide industrial consolidators with the liquidity required to execute cross-border acquisitions while managing debt service costs across varying interest rate environments.