SigmaRoc (LON:SRC)

SigmaRoc (LON:SRC)


Share Price
42.35 p
Change
-0.15 (-0.35 %)
Market Cap
£73.61 m
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SigmaRoc

SigmaRoc plc is an AIM listed buy-and-build construction materials company founded to generate shareholder value from a highly targeted investment strategy. Construction materials are a local product, consumed and produced locally and due to their high mass to price ratio, they tend to travel less far than other commodities like oil or metals. This brings a particular dynamic to the sector,...

EPIC: SRC
Market: AIM:SRC
52-week High/Low: 48.000p / 36.000p
Sector: Construction & Materials
Market Cap: £73.61 m
Website:
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Big Picture – A Deep Dive Examination of SigmaRoc


SigmaRoc Snapshot

Our investment strategy starts from the understanding that each local market is different with its particularities, competitive pressures and local history. Understanding that structure, preserving its history and local dynamics, while applying best in class operational and financial management will ultimately lead to a better offering, for investors, customers, employees and local communities.

A particular ingredient in that structure is empowering local managers and operators to take full responsibility for their business or division. Only local managers fully understand the requirements of the local market. Product innovation, customer engagement and capex decisions are all driven by local requirements and not by a group agenda, which may or may not be adequate for what is required on the ground.

At a group level, we utilise this decentralised approach to focus on what we are best at; finding appealing investment opportunities, helping the acquired businesses reach a best in class status operationally and financially, and lock in synergies available to us through scale and expertise.

Implementing our strategy

In practice the implementation of the vision expressed above can be achieved through three core principles:

Invest
Improve
  • The operational and financial performance of the business;
  • The motivation of management to back their own destiny;
  • The ultimate offering to the local market and community.
Integrate
  • By building platforms of compatible businesses;
  • By unlocking those synergies which do not come at a cost;
  • By recognising the value of what previous owners built.

Applying these principles consistently will deliver long term value for investors. It also provides entrepreneurs who wish to see their work respected and continued an exit, knowing their staff will be given new opportunities and their customers will be serviced.

Channel Islands Platform - Ronez Ltd

The Ronez operations supply the Channel Islands with aggregates, ready-mixed concrete, asphalt and precast concrete products. Operating out of St John’s Quarry in Jersey and Les Vardes Quarry and Vale Castle in Guernsey, we offer a full range of high-quality construction materials.

Quarrying activity at Ronez's sites can be traced back to 1869 serving the island’s needs for quarried stone. We have grown and developed and now produce precast materials, ready-mixed concrete, asphalt and undertake contracting services.

The creation of shipping division SigmaGsy by SigmaRoc has helped with transporting dry-bulk materials to and from the sites, resulting in higher profits and operational efficiency.

Click here for more info.

 

Precast Products Platform - Sigma PPG

Sigma PPG (Precast, Prestressed group) is a cluster of companies specialising in manufacturing precast concrete products. With locations in east & central England as well as London we supply a wide and diverse range of industries ranging from house builders and farmers to sea defences and car parks contractors. Our companies are some of the most experienced and innovative in the industry; some operating for over 70 years while others hold a record amount of patents licenses under their belt.

Platform's companies:
 

Allen Concrete

Allen Concrete manufactures precast concrete products for the fencing and building industries.

Plants in Surrey and Northamptonshire utilise modern production methods and machinery backed by careful quality control for the mass production of a large range of standard products.

The company’s expertise in the field of precast concrete production is based on more than 60 years’ experience, and is available to support the manufacture of all types of special units.

Large stocks and regular deliveries ensure the fast and efficient despatch of products throughout the country.
The company has many years’ experience as supplier to Ministry contracts and to county and local authorities, public utilities and rail networks.

Click here for more info.

 

Sigma SW

GD Harries (GDH)

GDH is the cornerstone for SigmaRoc's SW platform. With a 40% stake (and ability to purchase the remainder by mid 2020) it allows SigmaRoc to have a significant footprint in the region.

GDH is one of Wales’s largest independent suppliers of aggregates – based in West Wales, it operates out of six granite and limestone quarries – incorporating three asphalt plants. six concrete plants, and a wharf operation, as well as a civil engineering division delivering significant infrastructure projects.

The business was founded by Mr. Gerald D. Harries and built into the foremost independent regional supplier by his son Ian Harries, who is currently its chairman.

Click here for more info.

David Barrett - Executive Chairman
David co-founded London Concrete in 1997, subsequently building the business from one concrete plant in London to over a dozen plants around the capital. London Concrete was sold to Aggregate Industries and is currently the number one concrete supplier in London, with flagship projects such as the London Olympics, the Shard, the US embassy and the new Bloomberg building. Having previously worked with Pioneer, David retired from London Concrete in 2015 and is widely considered an expert in the industry.

 

Max Vermorken - Chief Executive Officer
Max was most recently a strategic advisor to LafargeHolcim Ltd (“LafargeHolcim”), the world’s largest construction materials group. His last role included responsibility for the hive-down and integration of two large asset portfolios – a mix which included two cement plants and a multitude of down-stream aggregates and construction materials assets – in the context of the global merger of Lafarge SA and Holcim Ltd. Prior to working for LafargeHolcim, Max worked in private equity at Luxembourg-headquartered The Genii Group, where he reported directly to its founding principals. Max holds a PhD in Financial Economics from University College London and Bachelor and Master degrees in both Civil Engineering and Financial Economics and Management, from University College London and the University of Brussels respectively.

 

Garth Palmer - Finance Director
Garth Palmer is a partner at Heytesbury Corporate LLP, a partnership engaged in the provision of corporate financial and company secretarial services.He holds a Bachelor of Commerce Degree and is a member of the Institute of Chartered Accountants in England and Wales. Garth began his career at Horwath Chartered Accountants, now part of BDO, in Perth in the audit and corporate services division before moving to KPMG’s audit and risk advisory team. In 2005, Garth moved to London where he provided compliance services, with a focus on U.S. Sarbanes-Oxley legislation, for numerous large companies across a range of industries. This led Garth to a Finance Manager role at Apple where he spent four years working on business process improvement, developing and implementing new and improved financial processes and systems. More recently, Garth has been working with AIM quoted companies, predominantly within the mining and resources industries, providing corporate and financial consulting services.

 

Patrick Dolberg - Non-Executive Director
From 2008 to 2013, Patrick was an Executive Committee Member of Holcim Ltd, reporting directly to the CEO, where he was responsible for Western and Central Europe. He joined the Holcim group in 1991, having held executive positions at Exxon Chemical International and Monsanto. From 1992 to 1996, Patrick wasGeneral Manager of Scrobiel, a member of the Holcim group. In 1998, he was appointed chief executive officer of St. Lawrence Cement, another Holcim group company, before joining Holcim US as chief executive officer in 2003. Patrick has an MBA from Solvay Business School, graduating with distinction.

 

Dominic Traynor - Non-Executive Director
Dominic is a solicitor based in London working primarily in the resources and energy sectors.  He has advised on the structuring and listing of more than 20 companies on the AIM market of the London Stock Exchange and has extensive experience in advising companies on mergers and acquisitions, IPOs and secondary fundraisings, joint ventures and other aspects of general corporate law.  Dominic has acted for companies with assets throughout the world including in Zambia and numerous other countries in Africa, the Middle-East and Australia. Dominic has a wide network of advisers and professionals in the resources sector and is also a non-executive director on various industrial, mining and resources companies. Dominic is a graduate of Durham University (LLB) and the College of Law, York.

Tim Hall - Non-Executive Director
Tim has spent his entire career in the aggregates industry, most recently as CEO of Breedon South, a business he helped build from inception. Prior to this he was director of Tarmac Limited's Western Area; managing director of Tarmac Western Limited, the company formed by Anglo American from the former assets of Nash Rocks, Tilcon and Tarmac. He spent the previous 27 years with Nash Rocks, latterly as managing director.

Tim brings a wealth of experience and knowledge of the industry to the Board and will be an asset in SigmaRoc’s continued development, as he has been with Breedon. In particular, Tim's knowledge and network within the industry will benefit SigmaRoc's growth in the aggregates and construction materials market in the UK.
 

KEY MANAGEMENT

Charles Trigg - Executive Committee Member - Operations
Charles is the former Group Head of Capex at LafargeHolcim Northern Europe responsible for all operational capex in the regions and was part of the Operational Excellence Team. Charles headed up the operations and supply chain team for the LafargeHolcim merger for the Northern European region.

Charles has previously worked around the world including; New Zealand on the strategic planning of the reconstruction of Christchurch after the earthquake as well as on project for the construction of roads of national significance; and Qatar working for Government Company charged with the country’s strategic construction materials supply where he led the development and construction of various operational sites to ensure continuity of national supply. A trained quarry manager he holds Bachelor degree in minerals processing and chemical engineering.

 

Mike Osborne - Managing Director Ronez Limited
Mike Osborne has been Managing Director of Ronez since 2006, where he has been responsible for Ronez’s
strategic direction and operational management. Prior to this, he spent four years as director of Aggregate
Industries’ overseas operations, reporting directly to the Aggregate Industries’ chief executive officer.
Between 1998 and 2001, Mike held a number of roles for Tarmac Group Limited primarily in Central Europe.
Mike has a BSc (Eng) in Mining Engineering from the University of London and he is a Fellow of the Institute
of Quarrying.

 

Shareholder No. of Shares Owned Share of the company held (%)
M&G Limited 17,098,260 9.84
Legal & General Investment Management Ltd 16,212,925 9.33
Bailiwick Investments Limited 16,000,000 9.21
Slater Investments 13,170,732 7.58
Pula Investments Limited 12,500,000 7.19
Nigel Wray 10,678,048 6.14
Polar Capital LLP

 

London Office

7-9 Swallow Street
London W1B 4DE
United Kingdom

Phone: +44 207 129 78 28
Email: [email protected]

www.sigmaroc.com

Advisors

Nominated & Financial Adviser

Strand Hanson Limited
26 Mount Row
London W1K 3SQ
United Kingdom

Broker

Berenberg
60 Threadneedle St
London EC2R 8HP

Solicitors to the Company

Fieldfisher
Riverbank House
2 Swan Lane
London EC4R 3TT

Share Registrar

Share Registrars Limited
1st Floor
9 Lion and Lamb Yard
Farnham
Surrey GU9 7LL

Auditors

PKF Littlejohn LLP
1 Westferry Circus
Canary Wharf
London E14 4HD

 

 

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