SigmaRoc: two bits of news

SigmaRoc (SRC.L, AIM All-Share, Market Cap ÂŁ125m, 49p, 2.4% of JIC Portfolio and 0.0% of JIC Top 10)

A couple of announcements from SigmaRoc

It has created a Benelux advisory board consisting of luminaries from the aggregates industry such as Pascal Lesoinne, previously CEO Cement and Aggregates for Heidelberg Cement Benelux. It will be chaired by CEO, Max Vermorken.

It has also negotiated a Group-wide Senior Credit Facility to replace its current system of several local facilities.

Conclusion: In themselves, not huge announcements but it does demonstrate the ambition of the company. Following the recent acquisition of  CDH DĂ©veloppement SA (“CDH”), a Belgian blue limestone and aggregate business, it clearly has plans to make further acquisitions in Benelux. I added SigmaRoc to the Portfolio in October and helped by Simon Thompson in the Investors Chronicle last week, the shares are up 5.2% so far. He reckons, I think correctly that it should be a beneficiary of increased infrastructure spending. I have it as Medium Risk/Medium Return suggesting a position of 2.5% for me. I’m at 2.4%. Given a December 2020 RE ratio of just 11.0x for forecast earnings growth of 45%, there is a case for moving the Return rating to High and thus a 5.0% position. I have no cash at the moment but when I free up some through a sale of another position, I may well add to SigmaRoc. Very Happy Holder!

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