Shares in Sigmaroc (LON:SRC) rose 10.5% after the European lime and minerals group ground out solid H1 results and reaffirmed FY26 guidance.
The AIM-listed company also excited investors by announcing the €118 million acquisition of a Lithuania-based dolomite producer.
The deal broadens Sigmaroc’s higher-quality industrial exposure and is expected to enhance FY27 earnings.
Sigmaroc delivers solid results
For the uninitiated, Sigmaroc invests in and acquires businesses in the fragmented lime and minerals sector. Lime and limestone are key resources in the transition to a more sustainable economy.
Applications for lime and limestone products include the production and recycling of lithium batteries, as well as the decarbonisation of construction including through substitution of cementitious material and new building materials. Environmental applications including lake liming, air pollution and direct air capture.
H1 results revealed modest sales growth but a stronger progression in profitability and continued deleveraging. Revenue rose 2.5% to £523.1 million in the six months ended 30 June.
However, adjusted pre-tax profits powered 11.4% higher to £75.1 million and Sigmaroc’s free cash flow improved 8.2% to £67 million.
| Year to December | FY26E | FY27E | FY28E |
| Revenue (£m) | 1,063.8 | 1,167 | 1,225.4 |
| Adjusted pre-tax profit (£m) | 162 | 191.2 | 205.9 |
| EPS (p) | 10 | 11.8 | 12.7 |
Source: Zeus Capital
The main drivers were pricing, operational efficiencies and a more favourable end-market mix. Stronger industrial demand offset continued weakness in parts of construction.
Led by CEO Max Vermorken, management reaffirmed its FY26 outlook. The firm is confident of meeting consensus estimates pointing to revenue of £1.07 billion and adjusted EBITDA of £276 million.
About AB Dolomitas
Sigmaroc also announced the acquisition of AB Dolomitas, which produces roughly 3.5 million tonnes of dolomite annually. Dolomite is a subgroup of high-grade limestone.
AB Dolomitas combines long-life reserves with its own road, rail and terminal logistics network. In FY25, the business generated €70 million of revenue and €18 million of EBITDA, representing a margin north of 25%.
‘From here we will develop our footprint as a leading supplier of dolomite, an essential ingredient in a number of key end applications, including a nascent green steel sector,’ enthused Vermorken.
‘Our balance sheet retains plenty of capacity for further acquisitions, as we continue to deliver value through the consolidation of our market position in lime and minerals in Europe.’
We like the look of the AB Dolomitas deal. This is a reasonably-priced acquisition which aligns with Sigmaroc’s continued focus on minerals businesses with high-quality reserves.
AB Dolomitas adds scale and products to Sigmaroc’s existing Baltic network. And its logistics infrastructure should create opportunities to improve distribution density and cross-sell across the region.
Following the update, Zeus Capital reiterated its ‘buy’ rating on Sigmaroc and increased its target price from 158p to 176.2p. The broker pointed out that Sigmaroc continues to trade below UK peers and at a ‘material discount’ to comparable international companies.
‘Core volumes and margins are improving, while structural growth drivers in industrial and infrastructure end markets provide significant tailwinds, further boosted when construction begins to recover,’ insisted the broker.
