Page 7 - Sigmaroc Annual-Report 2023

£182.4 •
7
NET DEBT2
Strategic execution driving strong performance, against a challenging market backdrop
• Trading resilience, efficiency gains and value-accretive acquisitions combined to deliver record earnings performance, ahead of original expectations5
LFL revenue grew by 2% and underlying EBITDA by 10%, despite a 4% volume decline, reflecting the Group’s strong market position, pricing power and differentiated operational model with diversified end markets
31 December 2022: £193.8m
-6%
CONVENANT LEVERAGE
1.57x
ROIC
10.8%
FCF3
£47.0m
FCF CONVERSION4
40.3%
• Continued emphasis on operational efficiency, with £4m of annualised profitability gains delivered across the Group, enabled further underlying EBITDA margin improvement to over 20%, demonstrating the Group’s pricing power
• Underlying EPS increased by 1% despite significant increase in finance costs and impact of dilution from the £30m equity fundraise in February 2023 with the proceeds fully invested in the months following the fundraise
Strong financial position and improved returns
• Covenant Leverage reduced to 1.57x further demonstrates ability of Group to de-gear while continuing to invest in growth
• ROIC increased by 50bps to 10.8%6, with clear path to medium term target of 15%
• Underlying EBIT ROI of 14% for acquired businesses (including FY23 acquisitions)
• Solid FCF at £47m reduced 13% YoY due to higher net interest payments and working capital absorption to support growth
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5. Company compiled analyst consensus estimates as of 18 December 2023: revenue of £596.9m, underlying EBITDA of £110.2m and underlying EPS of 7.5p.
6. ROIC calculation revised to include total equity in invested capital rather than just share capital.
31 December 2022: 1.93x
-19%
31 December 2022: 10.3%
+50bps
31 December 2022: £54.3m
-12.7%
31 December 2022: 53.4%
-12.7ppt