Authoritative Independent Monthly Share Selections Using Technical & Fundamental Analysis

Latest issue now available

SigmaRoc - Cluster buying by directors

December 2022

Investing in shares may lose you all or some of your money. Past performance is no indication of future performance. Some of the shares recommended here may be small company shares, which can be relatively illiquid and hard to trade and this makes such shares more risky than other investments.

  • Epic Code:
  • SRC
  • Price:
  • 51p
The shares bounced thanks to cluster buying by directors and interim results, which were strong. These showed revenue nearly trebling to £247m, EBITDA of £47.6m and pretax profit rising 234% to £29m following the transformative acquisition of Nordkalk. EBITDA margin of 19.5% was ahead of management's expectations, with effective pricing and ongoing efficiency initiatives mitigating the inflation.Justifying its “buy & build” strategy it said “performance improvement programmes, which have enhanced throughput and utilisation, commercial terms, increased materials reserves, and de-bottle necked capacity are expected to realise EBITDA benefits of £5m in 2022, with significant further scope in 2023 and beyond” while “average underly ...

To access our archive of articles and to receive current issues you need to subscribe.

Subscribe now

Already a subscriber? Login

With small companies there is an above average degree of risk compared to buying blue chips. Please be aware that we have not assessed the suitability of any of these investments for you. The newsletter simply states a personal view and diarises the editor’s investment decisions. Please speak to your stockbroker or other qualified individual to ascertain whether any of these companies mentioned would form useful additions to your own portfolios. Past performance is no indication of future success.

All material on this website is protected by copyright. You may use Information retrieved from the website for your own personal non-commercial use which means that you may not sell or copy this information to any third party without prior written consent. ISSN 1358-183X