Enlarged SigmaRoc trading on AIM after completed acquisition

4th Jan 2024 16:18

(Sharecast News) - SigmaRoc announced the admission of its enlarged share capital on Thursday, encompassing 693,801,899 existing ordinary shares, 418,464,565 placing shares, and 2,588,066 REX intermediaries offer shares, to trading on AIM.

The AIM-traded company said it had also finalised the acquisition of the Deal 1 targets.

It described the acquisition as a significant milestone, as it presented the opportunity to establish the firm as the leader in lime production in Northern Europe and a key supplier to the burgeoning green transition markets.

The lime market is poised for continued growth, with a projected value of €1.9bn in 2031 across the enlarged group's markets.

Pro forma revenue for the enlarged group was expected to reach £1bn, with underlying EBITDA of £211m, assuming the exercise of the UK call option and Polish call option.

Additionally, the enlarged group anticipated robust cash generation, targeting free cash flow exceeding £100m per annum.

The board said such financial strength was expected to facilitate a gradual reduction in leverage, aiming for a target leverage of 1.0x at a rate of 0.5x per year.

It added that the total consideration payable by SigmaRoc for the Deal 1 targets amounted to €745m (£645m).

"SigmaRoc has continued to trade well since the October third-quarter update," the firm's board said in its statement.

"The company will provide fuller commentary later in January with results expected to be at least in line with market expectations."

At 1538 GMT, shares in SigmaRoc were up 4% at 55.12p.

Reporting by Josh White for Sharecast.com.