Page 8 - Sigmaroc Annual-Report 2023

SIGMAROC ANNUAL REPORT 2023 STRATEGIC REPORT
Seabased liming in Rymattyla, Finland
Operational and strategic highlights
Growth
• Benefited from broad diversification across end markets and regions
• Subdued demand in residential construction markets was partially offset by a stronger backdrop for infrastructure projects and industrial markets
• Leadership in local markets and continued focus on service excellence supported a dynamic pricing approach, which largely offset the impact of inflation through the year
Investment
• Entered into agreements, in November 2023, to acquire CRH’s European lime and industrial limestone assets, transforming the Group into a leading European producer
• Deployed £32m to acquire six businesses generating £8m EBITDA across the UK, Belgium, France and the Nordics, which have all been successfully integrated and generating proforma 2023 EBITDA of £10m
• CapEx of £33m includes £5m of quarry development, contributing towards c.175 years of mine life at CDH and Ronez
• Successfully developed new asphalt plant in Llandarcy with first commercial sales commencing in March 2024
• Successful commissioning of Aqualung carbon capture technology in Sweden, ongoing deployment of biofuels across network, and partnership formed with Materials Evolution to further decarbonise concrete product offerings in line with the Group’s ESG strategy
Execution
• Continued safety improvement across the Group, with Total Incident Frequency Rate (TIFR) and Serious Harm Injury Frequency Rate (SHIFR) improved by 6% and 31% respectively including both employees and contractors
• Successful launch of Aqualung carbon capture facility in Sweden with development now focused on purification, compression and liquefaction for utilisation
• Launch of Puccini Blue, a revolutionary, highly sustainable re-interpretation of Belgium Blue Stone, revealing unique features not seen in other natural stone
• Progress on Materials Evolution partnership to produce low-carbon concrete products with the first plant on CCP’s site near Wrexham expected to be operational mid-2024
• Delivering continued YoY sustainability improvements: – 29% reduction in CO2 e intensity since 2021 baseline – 12% YoY reduction in electrical energy intensity
–71% fossil free electricity across the Group supported by 100% fossil free electricity in Nordics and Belgium
– POC to show kilns can run on between 50%-100% biofuel depending on kiln type
– 35% of total energy consumption from alternative and renewable means
Outlook
• Trends from 2023 expected to persist into 2024, with strong infrastructure and industrial markets and subdued residential construction
• Trading for the first two months of the year in-line with expectations, hence the Board’s outlook for FY24 remains unchanged
• Integration of CRH European lime and industrial limestone assets is progressing well and the Board is confident that once integrated, the Group will begin delivering previously outlined synergies, enhancing cash flows, and reducing leverage