Strong start to 2017 for SigmaRoc
Sales volumes above budget, healthy order book and additional debt facilities agreed
AIM-listed construction materials business SigmaRoc say the trading and operational performance of their recent Channel Islands-based acquisition, Ronez Ltd, has been strong with January sales volumes above budget and a healthy order book for the first quarter of 2017.
Moreover, the development of the required back-office systems is said to be proceeding at a much faster pace and at a much lower cost than initially expected, with the business currently on track to complete the implementation of the systems by the end of April 2017.
Consequently, SigmaRoc say a c.50% reduction in the back-office systems budget is expected to be achievable for this calendar year.
In addition, operational excellence programmes are being implemented which will generate further EBITDA improvement across the Ronez business throughout 2017.
SigmaRoc have also agreed terms with Santander UK plc on a £2 million revolving credit facility and are in advanced discussions on a further £18 million term facility.
Both facilities are on standard commercial terms maturing in 2021 and will see the business sufficiently capitalized to progress with its initial project pipeline.
David Barrett, executive chairman of SigmaRoc, commented: ‘Ronez, our first acquisition, is a high-quality business and these first weeks of trading have confirmed this.
‘We are working hard with all stakeholders to ensure SigmaRoc are well positioned to implement their ambitious growth strategy and I am delighted that we have reached agreement with Santander to provide additional finance to enable us to capitalize on further opportunities efficiently.’
Max Vermorken (pictured), SigmaRoc’s chief executive officer, added: ‘I am pleased with the support received from Ronez staff and the local communities on the Channel Islands.
‘Bedding in the Ronez business was our first priority and progress to date has been faster than I expected, enabling us to work towards optimizing operational and financial performance.’