Santander powers SigmaRoc with £14m funding for acquisition growth strategy

SigmaRoc plc, the London-based AIM-listed construction materials group, has secured £14m in new funding from Santander Corporate & Commercial in support of the group’s acquisition-led growth strategy.

As part of the transaction, the group also refinanced unsecured convertible loan notes held by shareholders.

Established in 2016, SigmaRoc operates on the UK mainland and Channel Islands.

Led by co-founders, CEO Max Vermoken and executive chairman David Barrett, SigmaRoc follows a decentralised buy-and-build strategy, acquiring companies where the experienced management team feel they can add value through operational and structural improvements.

SigmaRoc became a Santander client in 2017 when the bank provided an initial £20m to support the group’s buy-and-build strategy which has included the successful acquisitions of Topcrete Ltd and Poundfield Product Group.

The business also recently completed the acquisition of CCP Building Products Ltd, which was funded partly through the new Santander facilities.

CCP is one of the largest independent privately-owned manufacturers and suppliers of concrete products and aggregates in the North West of England and North Wales.

In its 2018 interim results, SigmaRoc posted a 52 per cent increase in year-on-year revenues to £19.9m, with underlying profit before tax up 139 per cent to £2.8m.

Max Vermorken, SigmaRoc PLC, added: “The funding from Santander has been central to the successful execution of SigmaRoc’s acquisition led growth strategy, and we are aiming to replicate this success going forward.

“We are continuing our search for additional acquisitions where we feel we can deliver extra value and firmly believe that we will continue to transform and grow the business across 2019.”