Our Investment Strategy
SigmaRoc plc is an AIM listed buy-and-build construction materials company founded to generate shareholder value from a highly targeted investment strategy. Construction materials are a local product, consumed and produced locally and due to their high mass to price ratio, they tend to travel less far than other commodities like oil or metals. This brings a particular dynamic to the sector, focussed on local and fragmented markets.
Our investment strategy starts from the understanding that each local market is different with its particularities, competitive pressures and local history. Understanding that structure, preserving its history and local dynamics, while applying best in class operational and financial management will ultimately lead to a better offering, for investors, customers, employees and local communities.
A particular ingredient in that structure is empowering local managers and operators to take full responsibility for their business or division. Only local managers fully understand the requirements of the local market. Product innovation, customer engagement and capex decisions are all driven by local requirements and not by a group agenda, which may or may not be adequate for what is required on the ground.
At a group level, we utilise this decentralised approach to focus on what we are best at; finding appealing investment opportunities, helping the acquired businesses reach a best in class status operationally and financially, and lock in synergies available to us through scale and expertise.
Implementing our strategy
In practice the implementation of the vision expressed above can be achieved through three core principles:
- Only in businesses with solid intrinsic value;
- Only in businesses with the potential to be improved and grown;
- Only in businesses which can be bought at a reasonable price.
- The operational and financial performance of the business;
- The motivation of management to back their own destiny;
- The ultimate offering to the local market and community.
- By building platforms of compatible businesses;
- By unlocking those synergies which do not come at a cost;
- By recognising the value of what previous owners built.
Applying these principles consistently will deliver long term value for investors. It also provides entrepreneurs who wish to see their work respected and continued an exit, knowing their staff will be given new opportunities and their customers will be serviced.
Founded in 2016 by an Ex-Holcim team consisting of high level executives and entrepreneurs; David, Max and Charles identified the opportunity in the British and Northern-European markets for a company with a different approach. Launched as a Cash Shell in August 2016, SigmaRoc was relisted in January 2017 through an RTO following an initial £50m raise for a cornerstone acquisition (Ronez Ltd.).
Since then SigmaRoc acquired both Topcrete and Poundfield Products to create its first Precast Products group (Sigma PPG) in South East England. The company currently employs circa 225 employees via its subsidiaries and continues to grow both organically and via further acquisitions.