It is almost six years since Notre-Dame was devastated by fire. Restoration work continues but, some £600 million later, the Parisian landmark has reopened, boasting a pristine, checkerboard floor.
Gleaming dark stone was provided by UK-listed SigmaRoc, a fast-growing provider of limestone and lime.
Founded just nine years ago, SigmaRoc has become one of the largest firms in its field, producing more than 20 million tons of limestone and lime per year.
Rarely a topic of everyday conversation, these compounds are an integral part of daily life, found in toothpaste and tablets, paper and paint, steel and cement.
Farmers feed limestone to chickens to help with egg-laying, lime is spread on fields to boost crop growth, construction firms need limestone as a basic building material. Even the Egyptians used limestone for the pyramids and, closer to home, Sir Christopher Wren relied on the stone for St Paul’s Cathedral.
An enthusiast for all things lime and limestone, SigmaRoc chief executive Max Vermorken set up his business with four like-minded colleagues in 2016. From a basement flat in West London, the group listed SigmaRoc on Aim and developed it through a blend of organic growth and acquisitions, culminating in an audacious £800 million takeover of Irish group CRH’s European limestone operations last year.
Highly ambitious, the deal was undertaken in three stages, allowing Sigma to double in size, with a strong presence across the UK and Ireland and much of Northern and Central Europe.
Sceptics pointed to the scale of the transaction and the £875 million (£730 million) debt facility incurred, but a trading update last week suggested that Vermorken’s plans are on track. Sales are 70 per cent ahead at almost £1 billion, debt is being paid down, efficiency initiatives are under way and earnings for 2024 are expected to be slightly ahead of forecasts.
Building firms account for a significant chunk of lime and limestone demand, and activity has been depressed here and on the Continent. Fortunately, SigmaRoc has thousands of customers across numerous industries so Vermorken is optimistic about 2025 and beyond.
The CRH acquisition has been transformative but the limestone industry is highly fragmented, so smaller deals may well be on the cards as Vermorken seeks to make his mark.
Brokers expect profits of £123 million for the year just ended, rising to £146 million this year and more than £160 million
in 2026. There are no dividends while Sigma strives to reduce its debt pile, but payouts should emerge over time.
Midas verdict: Midas recommended SigmaRoc last January, when the shares were 57p and the CRH deal was just weeks old. Today, Sigma stock is 38 per cent ahead at 79p and should continue to gain ground. Existing shareholders should sit tight, while new investors might also fancy a pop at current levels. Vermorken is highly driven, hard-working and a keen proponent of Aim. His business deserves support.
Traded on: Aim Ticker: SRC Contact: sigmaroc.com
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