SigmaRoc PLC on Monday reported strong trading in the first half of the year, and announced a new net-zero lime joint venture.

In the first half of 2022, the construction-focused investment company brought in revenue of £247.1 million, nearly triple that of £84.8 million the same period a year prior. Revenue was 17% ahead on a pro-forma basis, it noted.

Revenue increased primarily due to the €470 million acquisition of limestone-based products manufacturer Nordkalk back in August of 2021, as well as the additions of construction aggregate producer Johnston and Rightcast, which specialises in precast concrete products.

‘The majority of group businesses performed ahead of the board's expectations during the first half of 2022, which enabled the company to offset the impact of the union strike at our leading pulp and paper customer in the first quarter,’ SigmaRoc explained.

Pretax profit more than doubled to £18.6 million from £7.1 million.

Trading in the second half is going well, the firm said, as it benefits from its broad end market and geographical diversification. There remains good demand for housing and infrastructure, in addition to industrial minerals.

Shares in SigmaRoc were up 0.6% to 47.90 pence each in London on Monday afternoon.

In addition to its interim results, SigmaRoc announced a joint venture with Luxemburg City-based steel manufacturer ArcelorMittal SA. The new company resulting from the JV will produce lime, ‘an essential purifying additive used in steel production as well as numerous other industrial applications’.

The partners will work to produce 900,000 tons of lime per year, from operations based near Dunkirk's harbour and ArcelorMittal's steelworks. ArcelorMittal will be the main consumer of the lime.

To help reduce CO2 emissions, the company will aim to reuse heat recovered from ArcelorMittal's plant, and use biofuels in lieu of natural gas in the production process. These efforts will allow the new company to offer net-zero lime.

SigmaRoc estimates it will make invest around €20 million in the JV.

‘I am extremely pleased with the performance of the group considering the challenges faced in the last six months. Furthermore, Johnston Quarry Group and RightCast are excellent additions to the group and fit the SigmaRoc model well. The group remains well positioned for growth and evolution in the coming months and years, as clearly demonstrated by the very exciting development with ArcelorMittal,’ said Executive Chair David Barrett.

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