SigmaRoc PLC Acquisition of leading quarrying group GDH (5165X)
01 September 2020 - 4:00PM
UK Regulatory
TIDMSRC
RNS Number : 5165X
SigmaRoc PLC
01 September 2020
1 September 2020
(EPIC: SRC / Market: AIM / Sector: Construction Materials)
SIGMAROC PLC
( ' SigmaRoc ' , the 'Company' or the 'Group' )
Acquisition of leading quarrying group GDH (Holdings) Limited
('GDH')
SigmaRoc plc, the buy-and-build construction materials group, is
pleased to announce it will acquire the remaining 60 per cent.
equity interest in GDH, a significant quarrying group located in
South Wales, following the exercise of its exclusive option.
Completion is anticipated on or around 21 September 2020. The
Consideration, as set out in its announcement of 15 April 2019,
will be funded through internal resources following strong cash
generation during the first half of 2020. The Group's objective not
to incur further dilution for equity holders for the acquisition of
the remaining 60% shareholding was therefore achieved, making this
transaction significantly earnings enhancing.
As stated in the announcement of 15 April 2019, GDH is a major
quarrying, asphalt, concrete and contracting business located in
South Wales. It operates 17 production facilities, including seven
hardstone quarries, six concrete plants, three asphalt plants and a
wharf operation, as well as four road contracting units. The
business was founded by Mr. Gerald D. Harries and built into the
foremost independent regional supplier by his son Ian Harries, who
will continue to have an active involvement in the company going
forward. An independent assessment of its mineral assets by SLR
Consulting Limited has indicated close to 80m tonnes of reserves
and resources. The Board believes that the total expected life of
the reserves and resources of GDH is close to 100 years at the
present rate of consumption.
On taking full ownership of GDH, the Group expects to make
further progress with the integration and further improvement of
the business in line with its stated objectives and track record
across the UK and Belgium. As GDH recorded a solid performance in
each month of this year with a positive Underlying EBITDA for the
months of severe lock-down in Wales, the Group is confident it can
continue the success of GDH into the future. Further information on
GDH can be found at ('https://gdharries.biz') or in the Group's
announcement of 15 April 2019.
David Barrett, Chairman of SigmaRoc, commented:
"We are very happy to have been able to keep our promise to fund
the entire acquisition of GDH from internal resources to the
benefit of our shareholders. As we move forward we will, with the
assistance of Ian Harries, continue the success he and his family
built."
Max Vermorken, CEO of SigmaRoc, commented:
" Over the past 18 months we have assisted GDH with its
development as a minority shareholder. As we are moving into a new
phase of the development of the business we look forward to
continue to work with Ian Harries and his team to build and
strengthen GDH as a member of the SigmaRoc Group."
Information on the Company is available on the Company's
website, www.sigmaroc.com .
For further information, please contact:
SigmaRoc plc Tel: +44 (0)
Max Vermorken 207 002 1080
Strand Hanson Limited (Nominated and Financial Tel: +44(0) 207
Adviser) 409 3494
James Spinney / James Dance / Jack Botros
Liberum Capital (Co-Broker) Tel: +44 (0)
Neil Patel / Jamie Richards / Jonathan Wilkes-Green 203 100 2000
/ William Hall
Peel Hunt (Co-Broker) Tel: +44 (0)
Mike Bell/Ed Allsop 20 7418 8900
Rubik Communications (Financial PR adviser) Tel: +44 (0)
Andrea Mora / Charlotte Hollinshead 207 002 1080
info@rubikcomms.com
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.
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END
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