Results round-up
Buy-and-build construction materials group SigmaRoc delivered a solid set of results for its first year of trading profit as it successfully executed upon its strategy of extracting incremental value from acquisitions.
Underlying sales at the AIM-listed outfit printed at £27.1m over the twelve months to 31 December, with pre-tax profits hitting £2.6m, compared to a loss of £2.4m for 2016.
Earnings per share swung to a 2p profit from the 1.4p loss posted a year earlier and EBITDA swung 329% to sit £5.5m into the green.
The firm exceeded several of its targeted improvements while establishing a platform for growth that led to a 37% uplift in EBITDA from its Channel Islands cluster.
Sigmaroc made an opening move in the UK during the second half of 2017 with its acquisition of Allen Concrete in October 2017 and Poundfield Products in December 2017, presenting further opportunities for the group.
Cash balances soared 3,400% to £7m.
"I am pleased to report a strong year in 2017 where we were able to exceed our expectations and build a solid platform from which to continue to deliver on our growth strategy," executive chairman David Barrett said.
Max Vermorken, Sigmaroc's chief executive, added, "Our strategy is performing well, having completed the first four months of 2018 with Group sales on target. The upward revaluation of our Channel Islands fixed assets, together with the freehold land in our UK precast cluster, shows the strong asset backing underpinning our business. This provides a strong platform from which to grow and we look forward to further development in 2018."
"In our view, SigmaRoc remains one of the few acquirers of scale in Europe. The potential to purchase assets at 7-9x EBITDA and extract c20% in synergies should result in compelling returns to investors," analysts at Berenberg said following the results.
Berenberg stuck by its 'buy' recommendation and 105p target price for the shares.
"With the shares trading at a 40% EV/EBITDA discount to the sector, we think they represent good value, and we expect strong performance as this relatively new company develops a track record of delivering on its plans."
Bank of Georgia posted a decent 18.8% rise in its first quarter profit to GEL 128.56m on Monday, with basic earnings per share ahead 16.7% year-on-year to GEL 3.08.
The FTSE 250 firm said its book value per share was up 13.7% over the same time last year to GEL 64.91, with equity attributable to shareholders rising 11.7% to GEL 2.43bn.
Total assets reaches GEL 15.47bn, up 23.1% over the same time last year.
Revenue in its banking business was up 10.6% at GEL 236.39m, and revenue in its investment arm was 16.3% higher at GEL 296.68m.
“From a macroeconomic perspective Georgia is going from strength to strength, with business momentum continuing to accelerate and tourism inflows into the country rising at unparalleled levels,” said Bank of Georgia CEO Kaha Kiknavelidze.
“In 1Q18, real GDP growth was at an estimated 5.2% year-on-year, with inflation remaining well contained at 2.8%.”
In addition, the lari strengthened by 6.9% against the dollar during the first quarter.
“The National Bank of Georgia continues to increase Georgia's US dollar reserves and has recently been buying dollars, to mitigate further appreciation of the lari.”
Following shareholder approval on 30 April of the demerger of BGEO Group, Kiknavelidze noted it was the last quarterly report incorporating the results of both Bank of Georgia Group and Georgia Capital.
“The demerger is expected to be completed later this month, on 29 May, when both companies will become separately listed on the premium segment of the London Stock Exchange.”
Kiknavelidze said that over the last few years, the group had achieved “remarkable growth” and success in both the banking and the investment businesses.
“Leveraging on the continued success of Georgia and its expected future macroeconomic progress and strength, both businesses have exceptional customer franchises, management teams and employees that we, and the board of directors of both companies, expect to thrive as independent businesses that will build on their excellent track record for many years to come.”