2018 Trading Update & Update re CLN Redemption

RNS Number : 3176N

SigmaRoc PLC

17 January 2019

 

SigmaRoc plc / EPIC: SRC / Market: AIM / Sector: Construction & Materials

17 January 2019

SigmaRoc plc

('SigmaRoc', the 'Company' or the 'Group')

2018 Trading Update

Update re Convertible Loan Note Redemption

SigmaRoc plc, the AIM quoted buy-and-build construction materials group, is pleased to update the market on progress on the proposed improvement of the group capital structure and on trading for the year ended 31 December 2018.

2018 Trading Update

The Company is pleased to announce that it expects to report a strong performance from its businesses for the financial year ending 31 December 2018, with consolidated unaudited group revenues reaching £41.2 million, representing a 52 per cent. increase on the previous year, and with operational profits (EBITDA) being in-line with market expectations.

The Ronez business has continued on its path of improved operational efficiency and is expected to deliver increased operating profit compared to 2017. Operational efficiencies generated through the creation of the PPG platform, which includes Allen Concrete and Poundfield Products, are starting to contribute to the top and bottom line of the Group, with further improvements to be extracted as the integration work progresses in 2019.

Refinancing of the Convertible Loan Notes (the 'Notes')

Further to the Company posting a tender offer memorandum inviting holders of the Notes (the 'Noteholders') to tender the £10 million, 6 per cent. convertible unsecured Notes, due January 2022, issued by the Company, currently listed on The International Stock Exchange, (the 'Tender Offer'), SigmaRoc is pleased to announce that the written resolution accompanying the Tender Offer circular has been passed by over 75 per cent. of Noteholders.

The purpose of the written resolution was to seek Noteholders' approval, pursuant to paragraph 15.1.4 of Schedule 3 of the Note instrument, to sanction the proposed purchase of all the Notes contemplated by the Tender Offer. As set out in the Tender Offer circular, where any Noteholder had not completed a tender instruction in respect of all of the Notes held by it by 16 January 2019, any director of the Company is authorised to execute a tender instruction for and on behalf of any Noteholder.

Acceptance of Noteholders' tender instructions by the Company remains subject to the Company's entry into new banking facilities with Santander UK plc. A further announcement(s) will be made as and when appropriate.

David Barrett, Chairman, commented:

"I am grateful for the backing shown by both shareholders and finance providers for the refinancing of the Convertible Loan Notes, showing further confidence in our business and the ability of those who work here"

Max Vermorken, CEO, commented:

"I am extremely pleased with the expected unaudited results for the 2018 financial year. It is testament to the growth strategy pursued by the board and the hard work of management and our employees."

Further information can be found on the Company's website at www.sigmaroc.com.

Enquiries:

SigmaRoc	Tel: [phone]
Max Vermorken, CEO
Strand Hanson (Nominated and Financial adviser)	Tel: [phone]
James Spinney / James Dance
Berenberg (Broker)	Tel: [phone]
Ben Wright / Mark Whitmore / Laure Fine
Investor Relations	Tel: [phone]
Ian Osburn / Ben Feder	[e-mail]

 

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