SigmaRoc PLC Operational Update (4060X)
21 February 2017 - 6:01PM
UK Regulatory
TIDMSRC
RNS Number : 4060X
SigmaRoc PLC
21 February 2017
21 February 2017
SigmaRoc plc
("SigmaRoc" or the "Company")
Operational Update
Agreement of Debt Facility
Following a strong start to 2017, SigmaRoc plc, the AIM listed
construction materials business (AIM: SRC), is pleased to provide
the following updates on its Channel Islands based acquisition,
Ronez Limited, and the wider business:
Ronez Operations
- Trading and operational performance has been strong with
January sales volumes above budget and a healthy order book for the
first quarter of 2017;
- The development of the required back-office systems is
proceeding at a much lower cost and a much faster pace than
initially expected, with the business currently on track to
complete the systems implementation by end-April 2017;
- Consequently, a ca. 50% reduction in the back-office systems
budget is expected to be achievable for this calendar year;
- Operational Excellence programmes are being implemented which
will generate further EBITDA improvement across the Ronez business
throughout this year;
SigmaRoc Debt Financing
- SigmaRoc has agreed terms with Santander UK plc ("Santander")
on a GBP2 million Revolving Credit Facility;
- Additionally, SigmaRoc is in advanced discussions on a further GBP18 million Term facility;
- Both facilities ("Santander Facilities") are on standard
commercial terms maturing in 2021 and will see the business
sufficiently capitalised to progress with its initial project
pipeline; and
- Holders of the unsecured Convertible Loan Notes issued on
Admission will be required to enter into a subordination deed with
Santander, as set out in the Loan Note Instrument dated 5 January
2017.
The Company will continue to update the market as it reaches
operational and strategic objectives.
David Barrett, Executive Chairman of SigmaRoc, commented:
"Ronez, our first acquisition, is a high quality business and
these first weeks of trading have confirmed this. We are working
hard with all stakeholders to ensure SigmaRoc is well positioned to
implement its ambitious growth strategy and I am delighted that we
have reached agreement with Santander to provide additional finance
to enable us to capitalise on further opportunities
efficiently."
Max Vermorken, Chief Executive Officer of SigmaRoc,
commented:
"I am pleased with the support received from Ronez staff and the
local communities on the Channel Islands. Bedding in the Ronez
business was our first priority and progress to date has been
faster than I expected, enabling us to work towards optimising
operational and financial performance."
Capitalised terms in this announcement carry the same meaning as
those ascribed to them in the Company's AIM Admission Document
dated 15 December 2016 unless otherwise defined or the context
requires otherwise.
The information contained within this announcement is deemed by
the Company to constitute inside information as stipulated under
the Market Abuse Regulations (EU) No. 596/2014. Upon the
publication of this announcement via Regulatory Information
Service, this inside information is now considered to be in the
public domain.
**ENDS**
For further information, please visit www.sigmaroc.com or
contact:
+44(0)20 7193
SigmaRoc plc 4470
Max Vermorken
Strand Hanson Limited (Nominated +44(0)20 7409
and Financial Adviser) 3494
James Spinney
James Dance
+44(0)20 3829
Zeus Capital Limited (Broker) 5000
Rob Collins
Alex Wood
Tavistock (Public Relations +44(0)20 7920
Adviser) 3150
Jos Simson
Edward Lee
Orchard PR (Guernsey Public
Relations Adviser) +44(0)1481
Emma Anderson 251251
This information is provided by RNS
The company news service from the London Stock Exchange
END
MSCTBMFTMBITMTR
(END) Dow Jones Newswires
February 21, 2017 02:01 ET (07:01 GMT)
Sigmaroc (LSE:SRC)
Historical Stock Chart
From Apr 2024 to May 2024
Sigmaroc (LSE:SRC)
Historical Stock Chart
From May 2023 to May 2024