SigmaRoc

Annual Report and Financial Statements 
for the year ended 31 December 2022 

2022

SigmaRoc PLC

Registered number: 05204176
Registered address: 6 Heddon Street, London, W1B 4BT

Carrières du Hainaut recently 
welcomed His Majesty, the King and 
Her Majesty, the Queen of Belgium 
to visit the quarry in Soignies

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Contents

Strategic Report
HIGHLIGHTS 

THE GROUP IN NUMBERS 

CHAIRMAN’S STATEMENT 

CEO'S STRATEGIC REPORT 

TIMELINE OF KEY EVENTS 

KEY DEVELOPMENTS 

ABOUT US 

REGIONS AND PLATFORMS 

FINANCIAL REVIEW 

CHIEF FINANCIAL OFFICER’S REPORT 

CHIEF TECHNICAL OFFICER'S RISK REPORT 

CIO SYSTEMS & DIGITAL INNOVATION REPORT 

ESG REPORT 

STAKEHOLDER REPORT 

Governance Report
BOARD MEMBERS 

CORPORATE GOVERNANCE REPORT 

AUDIT COMMITTEE REPORT 

REMUNERATION COMMITTEE REPORT 

NOMINATION COMMITTEE REPORT 

DIRECTORS REPORT 

STATEMENT OF DIRECTORS’ RESPONSIBILITIES 

6

8

11

15

22

24

30

46

74

84

88

94

98

118

122

126

130

134

143

144

147

INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF SIGMAROC PLC  148

Financial Report
CONSOLIDATED INCOME STATEMENT 

CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 

CONSOLIDATED STATEMENTS OF FINANCIAL POSITION 

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 

COMPANY STATEMENT OF CHANGES IN EQUITY 

CASHFLOW STATEMENTS 

NOTES TO THE FINANCIAL STATEMENTS 

Additional Information
COMPANY INFORMATION 

DEFINITIONS 

154

155

156

157

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203

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STRATEGIC REPORT
Highlights

Underlying1 results

REVENUE

538.0m

EBITDA

£101.7m

+98% 31 December 2021: £272.0m

+106% 31 December 2021: £49.3m

FINANCIAL

EBITDA MARGIN

18.9%

NET MARGIN2

21.8%

RECORD RESULTS, EARNINGS ENHANCING 
ACQUISITIONS UNDERPINNED BY ORGANIC 
GROWTH 

 – Another year of strong delivery, with full year results 

ahead of original expectations6 

GROWTH

 – LFL volume growth of 1%, despite softer demand 
conditions through the year in certain markets

 – Benefited from broad diversification in both end 

markets and regions:

 – West region volumes grew 11% LFL and Baltics 

Platform volumes grew 24% LFL

 – Poundfield Products grew volumes by 8% LFL, 
helping offset softening elsewhere in the PPG 
Platform

+80bps 31 December 2021: 18.1%

+140bps 31 December 2021: 20.4%

 – Organic LFL revenue grew by 19% and Underlying 

EBITDA by 9%

 – Local focus, responsibility and commercial strategy 

supported market share gains in all regions

PROFIT BEFORE TAX

£62.7m

EPS

8.0p

+134% 31 December 2021: £26.8m

+49% 31 December 2021: 5.4p

NET DEBT3

£193.8m

LEVERAGE RATIO4

1.77x

+18% 31 December 2021: £164.0m

+5% 31 December 2021: 1.70x

CCR

86.6%

FREE CASH FLOW5

£54.3m

+27ppt 31 December 2021: 60.0%

+83% 31 December 2021: £29.7m

ROIC

10.7%

+310bps 31 December 2021: 7.6%

1  Underlying results are stated before acquisition related expenses, certain finance costs, redundancy and reorganisation costs, impairments, 
amortisation of acquisition intangibles and share option expense. References to an Underlying profit measure throughout this Annual Report 
are defined on this basis.
2  Net Margin is EBITDA margin adjusted for impact of inflationary cost pass-throughs, such as energy, materials, and distribution.
3  Net debt including IFRS 16 lease liabilities.
4  Leverage Ratio takes Adjusted Leverage Ratio and excludes IFRS 16 related lease liabilities.
5  Free Cash Flow takes net cash flows from operating activities and adjusts for Maintenance CapEx, net interest paid, and net non-underlying 
expenses paid.

 – Underlying EPS increased by 49% YoY

 – Ongoing focus on efficiency, with £5m of 

annualised EBITDA improvement initiatives 
delivered across the Group

INCREASED RETURNS AND STRONG FINANCIAL 
POSITION

 – Strong cash generation with £54m Free Cash 

Flow and 87% Cash Conversion Ratio supporting 
investment in bolt-on acquisitions and investment for 
organic growth

 – Adjusted Leverage Ratio comfortably below 2x 
target, despite continued growth investment

 – ROIC increased 310bps to 10.7%, with clear path to 

medium term target of 15%

 – Sustainable products saw continued strong 

demand, with Greenbloc on track to represent 
c.50% of PPG production by the end of 2023

INVESTMENT

 – Successful integration of Nordkalk with synergies 

representing annualised EBITDA contribution of €5m 
identified in the year

 – Three acquisitions completed for a net initial cash 

consideration of £44.6m with average multiple of 7x 
EBITDA funded from operational cash flow

 – Investment to secure additional 216 million tonnes of 
high grade and strategic Reserves and Resources, 
equating to >40 years of production

 – Launch of JV with ArcelorMittal provides framework 

for expansion of the Group’s lime business in Europe 
and create a new net-zero producer

OPERATIONAL AND STRATEGIC

EXECUTION

DIVISIONAL STRUCTURE 

 – New divisional structure implemented with regional 
head coordinating activities of platforms captured 
within the region

 – The Group’s existing platforms are divided between 

the North West, West and North East and the Group 
intends to report key financial and performance 
metrics by region going forward

 – Continued progress with safety initiatives –  

both Total Incident Frequent Rate (TIFR) and  
Serious Harm Injury Frequency Rate (SHIFR) 
improved by 13% and 19%

 – Aqualung partnership to launch carbon  

capture facility in the Nordics with objective of  
de-carbonising all kiln operations

 – Published maiden ESG report with net-zero target 

set for 2040

6  Company compiled analyst consensus estimates as of 12 December 2022: revenue of £512m, Underlying EBTIDA of £97m and Underlying 
EPS of 7p.

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STRATEGIC REPORT
The Group in numbers

Reserves  
and resources

1.6Btn

Net debt/
net assets 
0.4x

Assets

£906m

Net assets 
£468M

REVENUE GROWTH

2017
£27m

2022
£538m

2017-2022 
CAGR
82%

Av. acquisition
multiple 
pre synergies 

6.9x

Years since 
inception
6

Av. acquisition  
multiple pre synergies 
and improvements

4.9x

Sites

80

LEVERAGE RATIO

2022
1.77x

2022
22%

NET MARGIN

No of shares  
held by Directors/
employees

6,134,511

NET DEBT 
2022

£194m

2016-2022 
CAGR
171%

2022
8.03p

EPS

2016
0.2p

Profit before tax
2022

£63m

ROIC

2021
7.6%

2022
10.7%

YoY
+310bps

Maintenance 
CapEx
£26m

pct of D&A
87%

Resource  
extensions
£6m

Growth  
CapEx
£19m

Platforms

10

FREE CASH FLOW

2022
£54.3m

CCR

Divestments
£-10m

People

2050

Net
CapEx
£41m

2022
86.6%

M&A  
projects 
considered
130

Annual production

20mt

EBITDA margin
2022

19%

EBITDA GROWTH

2017
£6m

2022
£102m

2017-2022 
CAGR

80%

EBITDA  
improvement  
Group pre Nordkalk 
2017-2020

40%

EBITDA  
improvement  
Nordkalk only
2021-2022

+8%

EBITDA  
improvement  
Group total
2017-2022

+20%

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2022£538m2022£102m202210.7%20228.03p 
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Chairman’s
statement

STRATEGIC REPORT
Chairman’s statement

Dear Shareholders, 

2022 produced many new challenges for SigmaRoc to contend with and I 
am pleased to report that the Group was able to meet those challenges and 
in doing so surpassed our expectations for the year.

We had to deal with significant disruption to customers as 
a result of industrial action and plant issues, volatile energy 
prices, uncertain energy supply dynamics and the effects 
of the Russian invasion of Ukraine. In response to this, we 
were able to identify and execute multiple initiatives, across 
the business, to enhance growth and support returns. Our 
central team was able to find savings and efficiency gains 
to compensate for unexpected breakdowns and union 
strikes. Our commercial teams locally were able to deal 
with inflationary cost pressures, leveraging the strategic 
location of our footprint and our customer relationships. 
Our operators were able to react swiftly to an increasingly 
challenging energy market, production requirements and 
customer demand. We are pleased the quality of our 
operators, the inherent diversification in our model and our 
strong local market positions have demonstrated their true 
value in a time of rapid changes and numerous challenges.

Overview 

Despite the aforementioned global and local challenges, the 
Group delivered a strong operating performance in 2022, 

with volumes on average ahead across the Group YoY by 
1% on a LFL basis.

The Group is reporting 2022 revenue of £538.0 million, 
representing a 98% YoY increase, and Underlying EBITDA 
of £101.7 million, being an uplift of 106% YoY. Underlying 
profit before tax was £62.7 million and Underlying EPS 
was 8.0p representing a 49% improvement year-on-year. 
Revenue and Underlying EBITDA have increased primarily 
due to the inclusion of Nordkalk which was acquired in 
August 2021, together with the additions of Johnston and 
RightCast. On a LFL basis, revenue and Underlying EBITDA 
grew by 19% and 9%, respectively, during the year.

The strong trading performance and continuation of careful 
and effective cash management strategies have led to a 
strong year end cash position of £68.6 million. While the 
Group has continued its investment led growth strategy 
with the acquisitions of Johnston, RightCast and La 
Belonga, for a total initial consideration of £44.6 million,  
the Group’s Leverage Ratio at 31 December 2022 has 
reduced to 1.77x, which is comfortably within our long  
term target range.

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David
Barrett

CHAIRMAN

 
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STRATEGIC REPORT
Chairman’s statement

Continued focus on safety translated into further progress 
on safety reporting and management. The Total Injury 
Frequency Rate (TIFR) recorded dropped by 13%, while the 
Serious Harm Incidents Frequency Rate (SHIFR) dropped 
by over 19% versus prior years; including both employees 
and contractors. Positive reporting, including near hits and 
hazard and risk identification increased by more than 70%. 
One positive engagement initiative, set up in Belgium in 2021, 
has YoY resulted in an increased engagement of nearly 400% 
for near hits, hazard, and risk identification and a subsequent 
reduction in SHIFR by 23%.

Governance

In April 2022 the Group published its first ESG report which 
contains extensive detail on its Environmental, Social and 
Governance policies and initiatives, as well as a detailed 
roadmap to net-zero. Further updates to that report and the 
various initiatives that are underway across the Group are 
provided in the ESG section of these Accounts.

Outlook

Trading in the early part of FY23 has been encouraging, 
with overall Group performance for January and February in 
line with expectations. The Group has made good progress 
in executing its capital investment pipeline, deploying £12 
million of the £30 million equity fundraise completed in 
February on two businesses across Europe, with work 
ongoing to deploy the remainder and execute on the pipeline.

I am very optimistic about the Group’s prospects for 2023 
and expect the Group to deliver further improvement over 
what was a very successful 2022.

David Barrett 
Executive Chairman 
25 March 2023

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CEO's strategic  
report

STRATEGIC REPORT
CEO's strategic report

Dear Shareholders, 

2022 represented a real validation of our model as SigmaRoc delivered 
significant financial and strategic progress, despite a volatile and at times 
extremely challenging backdrop. Financially, the Group delivered significant 
earnings growth, to over £100 million of underlying EBITDA and 8p of 
Underlying EPS, whilst retaining a strong balance sheet with leverage  
below 2.0x.

Operationally, we have enhanced safety metrics and 
customer service levels, together with making sector leading 
progress on sustainability initiatives across the product 
range and asset base. Strategically, we have managed 
the successful integration of the transformational Nordkalk 
business and completed four further, earnings enhancing, 
transactions and reserve extensions in key locations. These 
achievements reinforce our belief that the businesses that 
form this Group and the more than 2,000 people that work 
for them, are of exceptional quality. 

This is particularly true of the operational and sales staff 
who, across the Group, had to contend with a series of 
acute challenges ranging from rapid cost inflation, energy 
availability and supply chain disruption. It is also true of the 
various support teams, who in a complicated year managed 
to keep the ship on course to deliver on all priorities we set 
well before 2022 started.

The content of this Annual Report therefore aims to highlight 
three key aspects of our model. First, that there continues 
to be significant opportunity to develop the Group, both 
organically and inorganically, across each of the platforms 
and that we have evidenced this potential again in a year of 
significant head winds. Second, that the diversified nature 
of our geographic footprint, end markets and product 
base, combined with the ability to implement high impact 
improvement programmes, has created real resilience in 
our trading performance. Thirdly, that these characteristics 
have enabled us to set challenging but attainable mid-
term strategic goals, both financial and ESG focussed, 
which represent significant value creation potential for all 
our stakeholders. These goals are set out below and the 
potential of the Group and our confidence in achieving these 
goals are considered in more detail in the sections that follow. 

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Max  
Vermorken

CEO

 
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STRATEGIC REPORT

CEO’s strategic report

Strategic development

Following a year of transformational investment in 2021, 
which included the acquisition of Nordkalk together with 
B-Mix and the establishment of the Benelux Platform, the 
Group made further significant strategic development in 
2022. In total, the Group deployed c.£44.6 million across 
three acquisitions which brought annualised revenues 
of c.£24.5 million and EBITDA of c.£7.3 million. The 
acquisitions were completed on attractive terms, in line with 
SigmaRoc’s strict financial criteria, which represented an 
average EBITDA multiple of c.6x. The team expect to realise 
synergies and productivity gains at each of the acquired 
businesses which will support increasing returns on the 
invested capital over time.

Together with financial benefits, the Group’s investment 
activities have further enabled the delivery of its long 
term growth ambitions through the enhancement of the 
asset base and commercial infrastructure. In aggregate, 
investment activities in 2022 added c.216 million tonnes 
of high quality reserves across the Group. In addition, the 
establishment of a strategic JV with ArcelorMittal provides 
a framework to accelerate the growth of the Group’s lime 
business across continental Europe.

At the end of January 2022, the Group acquired Johnston 
for an initial cash consideration of £35.5 million and 
deferred consideration of £8.5 million. Johnston is a 
specialist quarried materials supplier producing construction 
aggregates and premium quality building stone, as well 
as agricultural lime for soil improvement. Its aggregate 
products are typically used in infrastructure projects, with 
its unique Cotswolds Ironstone and Bath Stone used in 
specified high end housing and architectural applications. 
The business operates five active quarries and three 
mines and two separate processing sites located across 
the south-west of England, Oxfordshire and Lincolnshire. 
Johnston has access to 86 million tonnes of freehold and 
leasehold reserves and resources giving JQG an average life 
of mine of over 40 years.

For the 12 months to 30 September 2021, Johnston 
reported revenue of £14.7 million, generating EBITDA of £5.9 
million and profit before tax of £3.6 million. The acquisition 
was funded from the Group’s existing resources, including 
the assumption of approximately £11.0 million in borrowings 
comprising long term debt and plant hire contracts.

In April 2022, the Group acquired RightCast for an initial 
cash consideration of £2.5 million with a further £0.5  
million deferred consideration payable in 12 months subject 
to certain conditions. RightCast is a precast concrete 
producer specialising in the production of concrete stair 
flights and landings.

For the 12 months ended 31 October 2021, RightCast 
reported revenue of £3.1 million, generating EBITDA of £0.6 
million and profit after tax of £0.5 million. The acquisition was 
funded from the Group’s existing resources and RightCast 
has been integrated into the PPG platform. RightCast 
brought with it a strong pipeline of work, well established 
team and complimentary product offering to PPG.

In September 2022 the Group entered into a strategic 
JV agreement with ArcelorMittal to create a new net-
zero European lime producer. The JV will be located 
close to Dunkirk’s harbour and ArcelorMittal’s steelworks, 
with ArcelorMittal being the main consumer of the lime 
produced. To reduce CO2 emissions, the lime production 
process will use heat recovered from the ArcelorMittal 
steelworks plant and biofuels rather than natural gas. The 
location of the operations will allow the JV to be part of the 
Dunkirk CO2 hub. The combination of these CO2 reduction 
initiatives will enable the JV to offer net-zero lime.

Under the terms of the JV agreement, each of SigmaRoc 
and ArcelorMittal will take a 47.5% ownership stake. In 
the first phase of roll out, the new JV company will be 
responsible for the construction of three new lime kilns 
in Dunkirk. Initial planning has commenced on permitting 
and kiln specification for these operations, with final 
permitting approval expected toward the end of 2023 and 
commissioning in 2025. Long term supply and offtake 
agreements will be entered into between the JV partners.

In order to supply the new lime kilns in Dunkirk, in July 
2022 La Belonga was acquired. La Belonga is a limestone 
quarry located in the north of Spain with 60 million tonnes 
of reserves and resources and potential for a further 
120 million tonnes, subject to permitting. La Belonga is 
strategic to the Group as it is a large reserve of high quality 
limestone, possessing high calcium oxide and low sulphur 
content, which is suitable for use in the steel industry, 
and is located close to the Gijon port providing export 
opportunities into the Group’s European operations.

La Belonga was acquired for an initial consideration of €2.2 
million with a further €1.3 million of deferred consideration. 
For the 12 months ended 31 December 2021, La Belonga 
reported revenue of €3.5 million, EBITDA of €0.5 million and 
profit after tax of €0.2 million.

Development of the 2 million tonne quarry extension in 
Jersey, which was consented in 2021, has progressed 
well, with sales of product from the extended area 
already underway. In Guernsey, the planning application 
to develop a greenfield quarry at Chouet Headland was 
unanimously approved by the Guernsey Development & 
Planning Authority in October 2022. With current reserves 
providing a further 7-8 years of production, this approval 
secures the supply of Ronez value added product streams 
and the external construction market in Guernsey for the 
next 20 years.

In Poland, a new limestone deposit was opened, with 
planned reserve extensions expected to add a total of 35 
million tonnes to the Group’s reserves and resources.

In Belgium, quarry extension works are on track at Soignies 
with construction of the new road around the extension 
area progressing well, which has enabled excavations of 
overburden to start. 

Operations and trading

Group structure:

Following the substantial expansion and development of 
SigmaRoc in 2021, with the acquisition of Nordkalk, the 
Board determined that the Group’s platform-based model 
could be enhanced through the overlay of an overarching 
regional structure. The platform model has proven effective, 
ensuring the Group remains locally focussed and agile, with 
the regional overlay supporting the Group’s new expanded 
footprint and providing a strong foundation for further 
growth and expansion. This new regional structure will 
provide the basis for divisional reporting going forward.

Each region has a Managing Director and Financial Director 
who are responsible and accountable for overseeing 
performance, steering development, and driving growth. 
While these roles and responsibilities are new, the people 
occupying them are not. They are either MDs and FDs 
of existing platforms within the region, taking on a larger 
remit but retaining their prior responsibilities, or they 
are incumbents in the role (but with a new title) and the 
organisation beneath them has been reorganised, such is 
the case with Nordkalk.

The new regional structure aligns the Group as follows:

Region Platforms MD

FD

Countries

North 
West

PPG

England

Wales

Channel 
Islands

Michael 
Roddy

Michael 
Crump

UK

Channel 
Islands

West

Dimension 
Stone

Emmanuel 
Maes

Dean 
Masefield

Benelux

Quicklime

Nordics

Poland

Baltics

North 
East

Paul 
Gustavsson

Marcel 
Gestranius

Belgium

Netherlands

Luxembourg

Northern 
France

Finland

Sweden

Poland

Norway

Estonia

Latvia

Lithuania

Spain1

1  La Belonga was acquired by Nordkalk and currently reports into the 

North East region, this will be reviewed as the Group develops. 

Market dynamics:

The Group benefits from broad diversification across 
products, end markets and geography.

Approximately 44% of Group Revenue is derived from 
industrial mineral markets, which have seen resilient 
demand, supported by the following structural drivers:

 – Environmental, Agriculture and Chemical (20% of 

Group Revenue): Continued good structural demand 
pull through, with additional, ongoing substitution by 
customers of materials previously sourced from Russia.

 – Pulp, Paper & Board (14% of Group Revenue): Order 
books continue to replenish at historically high rates, 
with underlying demand from pulp customers increasing 
as part of the transition in packaging materials away 
from plastic and with the Group also benefitting from an 
increasing switch by customers to our products.

 – Metals & Mining (10% of Group Revenue): Order intake 

remains stable, despite lower European steel production 
in the second half of the year, with the Group able to sell 
product into a range of alternative local industrial markets.

The remaining 56% of Group revenues are derived 
from construction markets, with over half of this from 
infrastructure applications which have continued to see 
robust demand:

 – Infrastructure (32% of Group Revenue): Robust demand 
across the UK and European platforms, underpinned by 
customer guided volumes into 2023 as well as significant 
project wins.

 – Residential (25% of Group Revenue): Robust orderbooks 
in commercial markets and high specification products, 
including the Greenbloc range, offsetting low exposure to 
softening UK RMI market (total UK residential exposure is 
approximately 8% of Group Revenues).

The Group’s sustainable product offering has been a 
contributing factor to the substantial growth in the PPG 
Platform over the past two years, with Greenbloc helping 
secure tier 1 building contractors as part of the customer 
base. From 2020 to 2022, the PPG Platform grew revenue 
by 48% and Underlying EBITDA by 65%.

Trading performance:

The business overall performed ahead of Board expectations 
in 2022, which enabled the Group to more than offset c.£5 
million of profit headwind in Q1 arising from a combination of 
industrial action and other customer disruption.

North West

In the Channel Islands phasing of significant construction 
projects created a modest decline in volumes for the year, 
however this was offset by operational cost improvements 
derived from productivity gains resulting from investment 
in plant & machinery and strategic procurement of raw 
materials, combined with efficient hedging. This enabled 
the Channel Islands to meet its targets for the year, growing 
EBITDA by 5%.

PPG continued its strong performance through the year. 
Demand in the first half was consistent across the platform 
and cost inflation was effectively passed-on through 
regular price increases. In the second half, a slight slowing 
in demand at CCP and Allen was offset by a very busy 
bespoke projects division at Poundfield and strong trading 
at RightCast. Poundfield had a record year, increasing 
revenue by 39% YoY.

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STRATEGIC REPORT
CEO’s strategic report

At Johnston, construction aggregate demand from the 
Lincolnshire quarries was subdued as large infrastructure 
projects were delayed but this was offset by strong demand 
for agricultural lime. Performance post-acquisition was 
further improved through the integration process, including 
a review of operating costs and savings from utilisation of 
Group supply chains.

Revenue for Harries was strong throughout the period, 
but margin performance was impacted in January and 
February as a result of equipment issues which increased 
maintenance and plant hire costs. This was recovered 
by improved margins through a combination of premium 
aggregate product sales and operating cost efficiencies, 
which translated into an increase in EBITDA of 25% YoY.

West

Dimension Stone had another strong year of trading through 
2022, with an exceptionally strong order book translating 
into high volumes. Inflationary input cost pressure was 
mitigated by regular price increases, and we further 
benefitted from very good electricity generation from a new 
solar panel installation. Commercial highlights for the year 
included the specification of Bluestone for new offices at 
Euralille in Lille, development around Penn Station New 
York, modernisation of Leuven railway and city centres of 
Charleroi and Gembloux.

Our Benelux platform performed ahead of expectations. 
B-Mix had a very strong year with volumes ahead of budget 
translating into strong EBITDA growth. Cuvelier was in 
line with expectations and while GduH was behind on 
volumes for much of the year, strong volumes in November 
and December combined with a contractual take-or-pay 
adjustment translated into results ahead of expectation.

North East

Nordkalk faced particularly challenging conditions in the 
early part of the year, including:

Financial performance 

The Group delivered an excellent financial performance for 
the year, which was ahead of both the Board’s and market 
expectations. Reported revenues were £538.0 million, 
delivering Underlying EBITDA of £101.7 million, with demand 
and pricing pass through driving significant top line growth 
which, combined with continued efficiency gains realised 
across the business, enabled a strong margin performance 
in what was a challenging backdrop. This performance is 
a testament to effective local management taking the right 
decisions to protect their businesses without hesitation, 
whilst retaining focus on supporting their local markets.

From a balance sheet perspective, as at 31 December 
2022, gross assets were £906.1 million, underpinned by 
over 1.6 billion tonnes of reserves and resources, land, 
plant and machinery in strategic locations. Net assets were 
£469.9 million. At year-end the Group had access to a 
further £173.0 million in RCF and credit facilities which will 
support the Group’s further evolution. We maintain leverage 
targets at two times Underlying EBITDA with a significant 
down trend, giving the Group the ability to reinvest 
generated cashflows as the Group reduces its gearing. At 
the year-end our Adjusted Leverage Ratio stood at 1.93 
with cash at £68.6 million.

ESG, Safety and Innovation

ESG:

In April 2022 the Group published its first ESG report which 
contains extensive detail on its Environmental, Social and 
Governance policies and initiatives, as well as a detailed 
roadmap to net-zero. The report provides further detail on 
a large number of initiatives already in place across the 
Group to manage its energy use and sourcing, as well 
as accelerate its successful track record in innovation to 
both meet demanding ESG targets and further enhance 
competitiveness. In summary of the ESG report, we aim to:

 – The Russian invasion of Ukraine displacing three 

 – provide the option for 100% of manufactured products to 

employees and their families;

utilise waste/recycled materials by 2025;

 – Significant energy cost increases and concern over 

 – utilise 100% of production materials by 2027;

supply arrangements;

 – Union strike at UPM in Finland which persisted for almost 

4 months; and

 – Unexpected plant shutdown at customer, SSAB, in 

January.

Through active collaboration between SigmaRoc technical 
teams and the regional teams within Nordkalk, many of the 
challenges were met head-on. Further savings were found 
across the Group and Nordkalk’s commercial teams were 
able to manage the inflationary pressure well through a 
combination of hedging and dynamic pricing. The impact 
from customer interruptions was successfully mitigated 
through the implementation of cost saving programmes 
across the Group combined with catchup demand through 
the remainder of the year. In response to the Ukraine 
conflict, Nordkalk staff in Poland were very active in assisting 
our Ukrainian staff and their families to relocate to safety 
when possible, with those who had to remain in Ukraine 
being located near the Polish border. As a result, Nordkalk 
had a strong 2022 in ways beyond the purely financial.

 – be free of fossil fuel use by 2032; and
 – achieve net-zero by 2040.

We are not aware of any other operator in the lime sector 
having committed to these targets and no other building 
materials producer is presently able to offer certified 
products with ultra-low carbon credentials totally free of 
cement, across the entire range of its products.

More specifically, feasibility studies have been initiated 
across the Group to further increase green energy sourcing. 
These include new wind and solar installations and further 
increases of existing solar capacity on site at Soignies.

In West Wales, Harries contributed to a successful “nappy-
enhanced” asphalt trial, whereby 2.4km of roadway was 
surfaced using asphalt that contained recycled nappies. 
The fibres from the nappies improve binding of bitumen with 
aggregate, resulting in a more durable road surface which 
is expected to remain in situ for up to 20 years while also 
providing reduced road noise.

As part of our commitment to employees as well as their 
families and the communities they love and work in, West 
Wales held a Family Fun Day with over 200 people attending. 
This was an opportunity for everyone to come together, have 
fun and relax as well as raise money for local charities with 
additional support from other local businesses.

Furthering our governance initiatives, Julie Kuenzel was 
appointed as Company Secretary in September 2022. Julie 
holds a Bachelor of Commerce Degree, is a Chartered 
Accountant and working toward membership with the 
Chartered Governance Institute UK & Ireland. Julie has over 
20 years’ experience working in a wide range of industries in 
senior management positions. More recently, Julie has been 
focussed on providing financial and corporate governance 
advice to listed companies. Julie replaced Westend 
Corporate, who remain as the Group’s financial accountants. 
Julie’s appointment bolstered the Group’s already strong 
corporate governance function, and she reports to the Board 
on all compliance related matters.

In April 2022, Axelle Henry joined the Board as an 
independent NED. Ms Henry brings significant financial  
skill to the Group given her role as CFO of a major 
investment fund and also adds fresh perspective to the 
Board with her knowledge of sectors which are more brand 
and innovation oriented.

To support both our businesses and our communities, we 
are continuing to develop our working relationships with the 
military and military employment charities and are registered 
with the Career Transition Partnership. We will help facilitate 
resettlement and transition from military to civilian life as well 
as support civilian spouses and partners of serving and ex-
Forces personnel on their journey into employment.

Across all our platforms, our business model of local 
business for local communities ensures that we continue to 
integrate into the areas we work, supporting both other local 
businesses, projects, and communities. 

Safety:

The Group has continued to progress and improve its safety 
culture in 2022 by focusing on 3 key areas:

1.   Structure & Compliance by ensuring corrective actions are 

properly closed out and on time;

2.   Proactive Prevention by focusing on each businesses’ 3-5 

core risks; and

3.   Learn & Improve through thorough investigations and 

timely communication.

We are pleased to report a 13% YoY reduction in incident 
frequency rate; 19% reduction in serious harm frequency 
rate and over 70% YoY increase in near hit, hazard and risk 
reporting, taking into account all those that work on our sites, 
employee and contractors alike. With the addition of three 
new businesses during the year the Group has leveraged its 
established health & safety tools and procedures, including 
the internally developed safety management system HighVizz 
which has helped increase reporting, decrease incidents, and 
improve safety awareness and culture.

Innovation:

In November 2022 we announced our partnership with 
Aqualung to construct Europe’s first industrial scale carbon 
capture facility in Scandinavia, with the objective of rolling 
out across the Group’s entire kiln network and capture all 
kiln process emissions by 2030.

The market reaction to Greenbloc has surpassed our 
expectations. We have invested significantly in our own 
manufacturing facilities to keep pace with demand, while 
the PPG platform has also acquired and developed 
additional UK sites to facilitate the development and 
manufacture of ultra-low carbon construction products that 
go beyond concrete blocks.

From the start of this year every product currently 
manufactured by SigmaRoc’s PPG platform is now available 
in a cement-free ultra-low carbon option. 2023 will see up 
to 50% of all products produced across the PPG platform 
falling under Greenbloc low carbon alternative ranges.

Our strategic collaboration agreement with Marshalls, which 
was established on the back of our leadership in the market 
with Greenbloc, accelerated during 2022. We have multiple 
workstreams focusing on pushing existing technologies 
to their limits while also developing new manufacturing 
techniques. Together with Marshalls, we remain committed 
to improving how concrete is specified within the build 
environment and reducing its carbon footprint significantly.

In the Channel Islands all ready-mix concrete and concrete 
products are now offered with a low carbon cement blend 
option, and the ultra-low carbon offering for ready-mix 
concrete is gathering traction in the market. 

Post period announcements 

In February 2023 the Company successfully completed a 
£30 million fundraise to part fund ten potential near term 
strategic acquisition opportunities and four organic growth 
and carbon footprint reduction projects. Collectively, the 
strategic acquisitions and the organic growth investments 
are anticipated, should they all complete, to generate, net 
of proposed divestments, approximately £42 million of 
revenue, £10 million of EBITDA and profit after tax of £6 
million on an annualised basis. 

In March 2023 the Company announced completion of 
the following acquisitions, which form part of the near term 
strategic acquisition opportunities announced in February 
2023, for an aggregate consideration of £12 million:

(a) 

 Goijens, a leading supplier of ready-mixed concrete 
and pumping solutions, located in the north east of 
Belgium. Goijens operates two concrete plants and 
concrete recycling facilities, as well as pumping and 
other services. Its footprint, located in the north east 
of Belgium on c.10 acres of freehold land, is highly 
complementary to the Benelux Platform, which is 
expected to enable commercial and operational 
synergies, as well as a swift integration into the Group; 
and

(b)   Juuan Dolomitik, a specialist supplier of high 

quality dolomitic limestone, used in agricultural and 
environmental sectors to improve regulation of soil pH 
and water retention. JD’s operations are located close 
to the Group’s existing Finnish business and represent 
a valuable extension into dolomitic limestone, adding 
approximately 1.5 million tonnes of reserves, equating 
to roughly 30 years of operating life.

Additionally in March 2023, the Company announced that it 
had been successful in its claim to seek compensation from 
the Swedish state in respect of land use restrictions. The 
verdict, pronounced on 14 March 2023, made an award 
to Nordkalk in compensation for economic loss, of which 
a sum of c. SEK 188 million (c. £17 million) that is to be 

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STRATEGIC REPORT
CEO’s strategic report

adjusted for inflation and interest until payment is made, is 
receivable by the Group as its share. The verdict is subject 
to appeal until 4 April 2023 and receipt of funds remains 
subject to the outcome of any appeal, if lodged.

Forward look

The Group has started 2023 positively, trading broadly 
in line with expectations, supporting a cautious level of 
optimism for the remainder of the year. Whilst the significant 
reduction in energy prices in the UK and Europe has 
improved the demand outlook for many of the sectors we 
supply, we continue to see variable conditions across our 
end markets, with recovering demand and structural drivers 
in a number of segments offsetting continued subdued 
activity in others. 

Notably, we have seen stronger than expected demand 
from European steel customers as a result of more benign 
energy conditions and our infrastructure construction 
pipeline remains healthy in all jurisdictions. Set against this, 
residential construction demand in the UK, and to a lesser 
extent Sweden and Finland, remains softer, although this 
represents c.10% of Group revenue.

We have continued to price dynamically, pass through 
inflationary cost increases and utilise hedging, and 
operational execution has remained strong, enabling the 
Group to deliver further efficiency, improvement and cost 
saving programmes.

The Group’s pipeline of organic and acquisition investment 
opportunities is very robust, with the proceeds of the equity 
fundraising in February enabling the Group to execute on 
multiple value accretive projects in 2023 and toward the end 
of the year the Group will have generated c.£50 million in 
FCF with headroom to support further capital deployment.

The Group has a clear set of strategic priorities which 
support sustainable organic growth, robust margins, strong 
cash generation and expanding ROIC. Our broad footprint, 
product set and end market representation provides 
numerous avenues through which to accelerate delivery 
through further investment and a market leadership position 
in sustainability.

I am therefore confident in the Group’s ability to deliver 
another exceptional year of growth and development.

This report was approved by the Board on 25 March 2023.

Max Vermorken 
Chief Executive Officer 
25 March 2023

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2022 timeline of key events

JANUARY

Acquired Johnston, a 
specialist quarried materials 
supplier operating across 
the South West, Oxfordshire 
and Lincolnshire, for initial 
consideration of £35.5 million, 
adding approximately £16.5 
million in revenues, £6 million 
EBITDA and 86 million tonnes 
of reserves & resources to 
the Group. Notified of union 
strike affecting a pulp & paper 
customer in Finland.

MARCH

Publication of annual results for 
2021 and notification of AGM to 
be held in April 2022.

MAY

Very strong trading with full 
month contribution from SKOY 
following end of union strike at 
pulp & paper customer.

JULY

Ongoing work on energy 
mitigation strategies, including 
assessment of market dynamics 
with focus on Finland and 
Poland, transitioning plant to 
alternative fuels where possible, 
leveraging off-peak demand and 
review of hedging strategies.

SEPTEMBER

Strategic JV with ArcelorMittal 
to produce net-zero lime via the 
construction of three new lime 
kilns in Dunkirk. Publication of 
interim results for 2022, together 
with appointment of Julie 
Kuenzel as Company Secretary.

NOVEMBER

Partnership with Aqualung 
signed to install carbon capture 
membrane technology across all 
operational kilns in the Nordics.

FEBRUARY

APRIL

Russia invades  
Ukraine, displacing millions of 
people including colleagues  
and their families while also 
exerting pressure  
on energy prices  
and availability.

Acquisition of  
RightCast, a supplier  
of bespoke precast concrete 
products, specialising in concrete 
stairs and landings, based in 
Yorkshire. AGM held and all 
resolutions passed. Publication of 
maiden ESG report. Notification 
received that the  
union strike affecting customer in 
Finland has been resolved.

JUNE

Continued strong  
trading across the  
Group to close  
out a challenging,  
but successful, first  

half of 2022.

AUGUST

OCTOBER

DECEMBER

Energy outlook  
becoming increasingly uncertain 
for the remainder of the year, 
with electricity and  
gas prices continuing  
to rise dramatically  
across Europe.

Unanimous approval of 
planning application to develop 
a greenfield quarry at Chouet 
Headland in Guernsey, securing 
the supply of Ronez value 
added product streams and the 
external construction market in 
Guernsey for the next 20 years.

Strong trading to close out 
the year, benefiting from 
subdued energy prices, good 
availability and solid volumes. 
Updated market guidance, 
with Underlying EPS expected 
to be at least 10% ahead of 
consensus estimates.

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Key  
developments

STRATEGIC REPORT
Joint-venture with ArcelorMittal

In September the Group announced that it had entered into a JV agreement with ArcelorMittal, 
a leading global steel and mining company, to develop Europe’s first fully net-zero CO2 quicklime 
production for use in steel production and other applications. 

Under the terms of the JV agreement, the JV partners will, 
in aggregate, invest an initial amount of €40 million by 2024, 
to be complemented by a €40 million debt facility that the 
JV will secure, with the possibility for further phases to 
follow funded by the JV’s operating cashflow.

Planning has commenced for civils, permitting and kiln 
specification, with final permitting approval expected toward 
the end of 2023, which will then facilitate commencement of 
civil works and construction of the first kiln.

By plugging into ArcelorMittal’s carbon capture 
infrastructure, the JV’s quicklime production can both be 
assured of its net-zero credentials and proximity to its main 
offtake. Long-term supply of key inputs, such as limestone 
and kiln operations, plus offtake of quicklime produced, will 
be assured by the JV partners. SigmaRoc expects the JV to 
operate at equal margins, multiples, and leverage ratios that 
it aspires to in any of its investments.

In order to supply the new lime kilns in Dunkirk, La Belonga 
was acquired in July 2022. La Belonga is a limestone 
quarry located in the north of Spain with 60 million tonnes 
of Reserves plus Resources and potential for a further 
120 million tonnes, subject to permitting. La Belonga is 
strategic to the Group as it is a large reserve of high quality 
limestone, possessing high calcium oxide and low sulphur 
content, which is suitable for use in the steel industry, 
and is located close to the Gijon port providing export 
opportunities into the Group’s European operations.

Emmanuel Maes 

Head of M&A

“We are delighted to 
have entered into this 
new partnership with 
ArcelorMittal. Through 
our subsidiary Nordkalk, 

a leader in lime in Northern Europe, we bring 
decades of experience in the production of this 
essential material which we will leverage to drive 
the success of this collaboration. The addition 
of La Belonga in the north of Spain ensures the 
Group will be able to supply the new lime kilns  
in Dunkirk.

For SigmaRoc, this represents another important 
milestone in establishing ourselves as a leading 
European specialist quarried materials group in 
addition to helping us further on the road to net zero 
by 2040. The JV is reflective of this ambition and 
represents one of a number of important initiatives, 
both organic and inorganic, that we are pursuing.”

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STRATEGIC REPORT
Johnston Quarry Group

STRATEGIC REPORT
Aqualung

In January 2022, the Company completed the acquisition of Johnston Quarry Group for an initial 
cash consideration of £35.5 million.

JQG is a specialist quarried materials supplier producing 
construction aggregates and premium quality building 
stone, as well as agricultural lime for soil improvement. 
Its aggregate products are typically used in infrastructure 
projects, with unique Cotswolds, Ironstone and Bath 
Stone used in specified high end housing applications. The 
business has eight quarries and two separate processing 
sites located across the South West, Oxfordshire and 
Lincolnshire. JQG has access to 86 million tonnes of 
freehold and leasehold reserves and resources giving JQG 
an average life of mine of over 40 years.

For the 12 months to 30 September 2021, JQG reported 
revenue of £14.7 million, generating EBITDA of £5.9 million 
and £3.6 million profit before tax. As at 30 September 2021, 
JQG had gross assets of £22.1 million and net assets of 
£6.9 million primarily in land, mineral reserves and plant  
and machinery. 

As part of the acquisition of JQG, SigmaRoc also 
conditionally agreed to purchase from the sellers two further 
quarries, together with additional mineral reserves, for a total 
potential consideration of £14.5 million.

These additional sites have a strategically attractive location 
relative to JQG and will increase the business’ footprint 
and market access. The consideration for the acquisition of 
these additional sites is payable in three phases, upon the 
delivery of each of the two quarries and the delivery of the 
mineral reserves with planning permission.

In July 2022 the Group paid £4.5 million in relation to a 
successful permit extension and then in January 2023 the 
two quarries were acquired for £3.5 million, leaving a further 
£4.5 million potentially payable upon further successful 
permit applications.

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Photo from NTNU

In November 2022 the Group announced that 
it had signed an agreement with Aqualung 
that will allow for the installation of a carbon 
capture membrane technology solution across 
all its operational kilns. The technology is 
modular, tested, and scalable, allowing for 
a phased and systematic roll-out across the 
Group’s operations. In parallel, the parties will 
work on the entire carbon chain that includes 
the capture, sequestration and alternative 
uses or commercialisation of the captured 
CO2. The Group thereby estimates that it will 
be able to dramatically bring forward its net-
zero targets once full roll-out has commenced.

Lime kiln emissions are typically cleaner than other industrial 
applications and are more suitable to carbon capture, 
especially with regards to footprint and sizing. Aqualung’s 
solution uses a patented membrane technology which is 
both compact and scalable. The technology allows for a 
comparatively simple, low energy solution that mitigates 
the risks and complexity associated with absorbents, their 
regeneration processes, and hazardous wastes. Membrane 
technology is proven and tested giving both parties the 
required assurances that it has a high chance of success 
when applied across an entire kiln network.

Construction will commence in Q1 2023, and the full unit 
will be prefabricated and shipped on-site to Scandinavia 
with plug-and-play integration to the plant. Commissioning 
and start-up are scheduled for April 2023. Once operational 
the Group will finalise the wide roll-out plan, estimated to be 
completed by Q3 2023. Full Group roll-out can then  
be launched.

Charles Trigg 

CTO

“As a Group we are always on the lookout for interesting technologies that can help us advance 
our business and our operations. Aqualung is clearly that type of technology. Partnering with 
them to potentially decarbonise our operations well ahead of not just our timeline but probably 
the entire industry, is very exciting and the result of intense work across the Group, in particular 
at Nordkalk.”

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STRATEGIC REPORT
LCA, EPD, Carbon Tool and SBTi

STRATEGIC REPORT
Greenbloc and environmental sustainability

In November 2022 we selected a Group wide software, OneClick, that allows all our products to 
be reviewed with regards to carbon footprint as well as the management of our greenhouse gas 
(GHG) reporting

EPDs: Environmental Product Declarations are needed if it 
is required to externally verify and publish the environmental 
profile of products. This can help our customers and their 
projects achieve certification credits like LEED, BREEAM, etc.

Product LCAs: Product Life Cycle Assessments enable 
environmental assessments of product to be conducted 
that do not require the data to be verified or published by a 
third party. This can help our customers and their projects 
make sustainable choices when using materials.

Product Carbon Footprints (PCF) or Carbon 
Assessments: This is similar to a Product LCA in that it is 
not externally verified or published, however, it only covers 
the carbon footprint (carbon dioxide equivalent) of the 
products; again helping our customers and their projects 
make sustainable product choices.

GHG Reporting: Allows us to manage, calculate, track and 
report emission sources according to ISO 14069, the GHG 
protocol, and CDP standard categories including:

SBTi

As we continue our commitment to net zero, SBTi is a 
global body enabling businesses to set ambitious emissions 
reductions targets in line with the latest climate science. 

The latest climate science from the IPCC, described by the 
UN as “code red for humanity”, shows it is still possible to 
limit global temperature rise to 1.5°C.

It is critical that across the world we need to halve 
emissions before 2030 and achieve net-zero emissions 
before 2050. 

There are 5 stages of SBTi

1.   Commit: Register online and submit a letter to commit 
to setting a science-based target, or to have existing 
targets independently verified.

2.   Develop a target: Develop target(s) in line with SBTi 

science-based criteria.

 –   Scope 1: Direct emissions from stationary and mobile 

combustion sources, fugitive emissions, processes and 
biomass emission

3.   Submit target for validation: Review of targets by 

SBTi team of technical experts to validate it against our 
science-based criteria.

 – Scope 2: Indirect emissions from electricity, heating and 

cooling consumption

4.   Announce target and inform stakeholders: SBTi will 
publish targets on their Companies Taking Action Page. 

 – Scope 3: Purchased goods and services, capital goods, 
waste, business travel and commuting, investments, 
freight, use and end-of-life of sold products, downstream 
leasing and franchises

The software complies with EN/ISO standards and 40+ 
certifications. These include EN 15978, EN 15804, EN 
15942, ISO 21931-1, ISO 21929-1, ISO 21930, BREEAM, 
LEED and HQE and can easily calculate product carbon 
footprints in line with ISOs 14040, 14044 and 14067, and 
EN 15804.

5.   Disclose progress: Disclose company’s emissions 
annually and monitor progress on reaching target.

Through our SECR reporting we have strong data, 
which will allow us to submit our targets by H1 2023 for 
verification, thereby strengthening our commitment to our 
net-zero program 

The ability to capture our data on a regular basis allows us 
to focus on our ongoing and future reduction programs to 
ensure we achieve our science-based and net-zero targets.

Noora Guzman, Sustainability Manager at Nordkalk

Innovations in building materials are a key component in the growth of sustainable construction. 
Consumer and regulatory trends are largely driving adoption of sustainable building materials and 
processes that are more resource efficient and can reduce health impacts of buildings throughout 
their lifecycle. This is creating new business drivers for construction materials companies, with 
an opportunity to increase revenues. Furthermore, some new products require less energy to 
produce, or use largely recycled inputs, reducing production costs. Sustainable construction 
materials, therefore, can contribute to a company’s long-term growth and competitiveness.

In 2021, SigmaRoc, via its PPG platform, launched 
Greenbloc. Greenbloc is a zero-cement technology, reducing 
the carbon embodiment of the concrete by 80%, which is 
achieved by removing 100% of the cement content. This year 
we have advanced the technology to improve the production 
process and further reduce the carbon embodiment. 
Greenbloc is no longer constrained by extended curing times. 
Our new advanced version can now be produced within 
the same curing time as our cement-based mixes, reducing 
curing times of the 2021 version by 75%. This further reduces 
the carbon embodiment through a reduction of scope 1 
emissions associated with curing.

The end of 2022 brought advancements in alternatives 
across the entire PPG platform, with 50% and 80% cement 
replacement solutions produced at minimal additional cost, 
using new accelerating technologies that allow us to produce 
in the same manner as traditional concrete products. 50% and 
80% cement replacement provide a concrete CO2 saving of 
45% and 80% respectively. These new developments reduce 
CCP scope 3 emissions relating to cement and “Purchased 
Goods and Services” by over 13m CO2 kge per annum.
2023 will see up to 50% of all products produced across  
the PPG platform falling under Greenbloc low carbon 
alternative ranges.

In 2022, Allen Concrete became the first site to switch to 
a low carbon cement. Their CEM I has been replaced by 
a CEM II-AL which contains 11% less cement clinker, the 
main ingredient that results in cement having high carbon 
embodiment. The CEM II-AL reduces Allen Concrete’s 
concrete carbon embodiment by 9.9% and reduces the 
overall scope 3 emissions relating to cement and “Purchased 
Goods and Services” by over 320,436 CO2 kge per annum.

Supporting further reductions in CO2, Poundfield, Aberdo 
quarry and our Llay manufacturing plant have all agreed to 
switch to renewable energy tariffs in 2023. This is 8 years 
ahead of our net-zero commitment, reducing scope 2 
emissions by 106,000 CO2 kge per annum. Poundfield has 
also invested in multiple electric FLTs as alternatives to current 
diesel options, combined with Poundfield’s 2023 renewable 
energy tariff this means Poundfield’s new electric FLTs will be 
carbon neutral, contributing to our scope 1 reductions.

The use of OneClick not only shows our commitment to 
sustainability transparency through Environmental Product 
Descriptions (EPDs) but allows us to take full in-house control 
of our EPDs, both verified and bespoke, and is the leading 
software in the concrete industry. This provides customers 
with the much needed environmental, full life cycle, cradle to 
grave, carbon embodiment data, and will substantiate the fact 
that PPG products are the right choice for the environment.

Our future is in low carbon cement alternatives and the use 
of waste CO2 in our concrete. Development is underway 
to produce the UK’s first block that sequesters waste 
CO2 into the concrete product, storing it permanently. 
This sequestration technology is the leading solution for 
carbon capture usage and storage (CCUS). It can be used 
to reduce our carbon embodiment further, and improves 
our environmental and sustainability branding, whilst also 
generating saleable carbon credits.

Our PPG platform remains the go-to provider of ultra-low 
carbon concrete solutions within the UK built environment and 
with plans underway for European expansion, we are excited 
by the opportunities we see ahead of us in 2023.

Revenue on Greenbloc products

Greenbloc in numbers

Launch
of Greenbloc

+2300%

Product range
extension

Geographic
expansion

22%

...of PPG’s revenues in 2022

41%

...of PPG’s major infra. projects completed in 2022

up to 80%

2020

2021

2022

...of CO2 reduction depending on the application

Significant growth driven by the completion of major infrastructure projects in 2022

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SigmaRoc PLC

Invest, Improve, Integrate and Innovate

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STRATEGIC REPORT
Decentralised business model

Every acquisition is made on the basis that it can stand 
on its own two feet and not just be a route to market. 
Historically in our industry, standalone businesses have 
been purchased due to their individual success, often to 
only become routes to market and have their value eroded. 

Our decentralised business model allows us to ensure 
that all our product and service offerings are capable of 
sustaining target level performance in their own right, 
leveraging group opportunities where it is in their best 
interest. This has allowed us to build a competitive 
construction materials group focussed on the long term 
benefits our industry has to offer.

The ability to extract the maximum value of every product 
and service we offer has been conceived on five simple 
statements:

1.  Commodity market set apart by quality of product 

and service

A family approach of being local and personally known to the 
customer base, with the management skill and approach of a 
major allows our business to compete with anyone.

2. Local products that do not travel

Construction materials are a local product, consumed and 
produced locally, due to their high mass to price ratio. This 
brings a particular dynamic to the sector, focussed on local 
and fragmented.

3. Synergies are local not global

Each local market is different, with its own particularities, 
competitive pressures and local history. Our platform 
structure allows local synergies to be maximised that are 
best for each platform ensuring true cost savings and 
empowered businesses.

4. Agility and speed 

Autonomous local managers fully understand requirements 
of local markets; each decentralised business can decide 
what is best for it at any moment in time allowing nimble 
reactions to changing economic environments as well as 
major events such as the COVID-19 pandemic and the 
Russian invasion of Ukraine.

5. Decentralised approach 

A decentralised approach that extracts maximum 
competitive value from each business, reducing 
unnecessary central costs and ensuring self-sustaining 
value driven businesses by empowering autonomous 
management.

Our decentralised model allows our platforms and 
businesses to focus on their delivery whilst a lean group 
level structure ensures governance and performance 
of the operations and the ability to engage in proactive 
investment activities.

About us

The Group consists of 3 
geographically defined core 
regions: the North East, West 
and North West. Within each 
region are platforms of 1-4 
businesses which are grouped 
by product types. Each 
platform has an EBITDA of 
approximately £10-20 million 
and approximately  
200 colleagues.

We ensure that our platforms 
are managed by strong 
entrepreneurial teams who 
operate independently while 
benefitting from the resources 
of a larger group.

These essential values 
allow us to remain agile and 
responsive to local customer 
needs.

We target organic revenue 
growth over the business 
cycle, while delivering 
attractive operating margin 
and strong cash flow.

This is then accelerated 
through carefully selected 
value enhancing acquisitions.

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NEW NORTH SEA  
ENERGY INFRASTUCTURE

Offshore wind farms

 Operating

 In progress or apllication

 Concept or development

Hydrogen-electrolyser 
projects

 Operating

 In progress or apllication

Carbon-capture projects

 Operating

 In progress or apllication
 Submarine comm.cables
 Energy islands

 SigmaRoc's target markets
Population density

 Not inhabited

 1 - 4

 5 - 19

 20 - 199

 200 - 499

 500 - 5000

STRATEGIC REPORT
To become the leading European quarried materials 
Group

WHERE?

Northern Europe where there is high density 
of infrastructure, population  
and industry.

WHY?

Because these markets can be  
horizontally integrated to drive cost 
synergies.

WHAT?

Quarries, lime and associated operations 
which benefit from barriers to entry and 
pricing power.

HOW?

By implementing a local, flexible  
platform-based model focused on  
empowering and helping managers.

The power of the North Sea

The North Sea has always been economically significant, 
with six countries bordering it, including Belgium, Britain, 
Denmark, Germany, the Netherlands, and Norway. It 
is characterised by its high density of infrastructure, 
population, and industry. 

And, there is one resource that the North Sea has an infinite 
amount of: awful weather. The sea has an infinite amount of 
wind, with average wind speeds of ten meters per second, 
making it one of the gustiest areas in the world. In 2022, 
North Sea countries auctioned 25 gigawatts in wind power 
capacity, making it the busiest year yet, with nearly 30 
gigawatts worth of tenders scheduled for the next three 
years. By 2050, the North Sea countries aim to install 150 
gigawatts of wind power, equivalent to 24,000 of the world’s 
largest turbines. 

But the North Sea region is also undergoing a 
transformation beyond the energy sector. Carbon capture 
and storage (CCS) projects are multiplying in the area, 
as the cost of CCS is decreasing and political resistance 
is easing. For example, the Netherlands has the Porthos 
project in Rotterdam, which would capture 2.5 million 
tonnes of CO2 annually for 15 years. Equinor and its 
partners have also completed drilling operations for a CO2 
injection well near Bergen, Norway, as part of the Northern 
Lights project.

Carbon capture projects are also part of SigmaRoc’s 
roadmap towards becoming net-zero. Indeed, the Group 
has installed its first carbon capture facility in Q1 2023 
in Scandinavia with the aim to capture all kiln process 
emissions by 2030. Overall, Europe currently has more than 
70 CCS facilities in various stages of development. 

The North Sea region is also becoming a hub for data 
processing and storage. The area has low electricity prices, 
a cold climate, a highly skilled workforce, and favorable data 

laws, making it an attractive location for data centers. New 
submarine data cables are being installed in the region, with 
demand for data centers projected to grow 17% annually 
until 2030. Major cloud companies such as Amazon Web 
Services and Microsoft Azure have already built server farms 
in the Nordics.

The sea is the answer

Europe’s shift towards renewable energy and a greener 
economy could draw more economic activity north. 
The abundant energy sources of the North Sea region, 
particularly wind and hydro power, have attracted 
companies involved in renewable energy, steel production, 
electric vehicle battery production, and wind turbine 
manufacturing. The move is expected to have a significant 
impact on Europe, both economically and politically.

Aker Horizons, a renewable energy firm, aims to establish 
a green industrial hub in Narvik, Norway, powered by 
offshore wind. In Boden, Sweden, h2 Green Steel is building 
Europe’s first new steel mill in half a century that will run 
on green hydrogen. The energy-intensive parts of the steel 
production process could move to where they can be done 
more efficiently, near renewable energy sources, while 
the labor- and knowledge-intensive parts could remain in 
Europe’s steelmaking heartlands.

Others moving north include industries such as makers of 
electric-vehicle batteries, which also require lots of energy 
to produce. 

The new North Sea economy could have a profound 
impact on Europe. It could shift the balance of power 
within littoral countries, and give Europe an economic and 
geopolitical boost. 

As SigmaRoc continues to expand whilst committing 
to its industry leading ESG targets, the Group aims 
to grow in the most dynamic region of Europe.

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SigmaRoc PLC

Invest, Improve, Integrate and Innovate

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STRATEGIC REPORT
Our core operating principles

CORE OPERATING PRINCIPLES
CORE OPERATING PRINCIPLES

1

2

3

4

We own quarries as 
their fixed costs are  
manageable and 
barriers to entry are 
high.

We help and empower 
local managers to  
become best in class  
operators.

We seek to sell 
everything we quarry 
and add downstream 
activities only locally.

We confront industrial 
challenges be it  
footprint or product. 

This gives us
PRICING 
POWER

This gives us
COST  
CONTROL

This gives us 
MARGIN 
EXPANSION

This gives us 
A COMPETITIVE  
EDGE

We call this 
INVEST 

We call this 
IMPROVE

We call this 
INTEGRATE 

We call this 
INNOVATE 

KEY DEDUCTIONS
KEY DEDUCTIONS

1

2

3

4

Quarries produce 
many products 
which can serve 
diverse growing end 
markets.

Integration is mostly  
horizontal across the 
products spectrum 
and along the value 
chain. 

Targeted  
value enhancing 
acquisition means 
accelerated organic 
growth

This gives us 
DIVERSE
END-MARKETS

This gives us an 
AGILE  
STRUCTIURE

This is
SENSIBLE 
M&A

We deliver value  
responsibly with 
a positive impact 
on society and the 
environment.

This gives us 
ESG  
LEADERSHIP

Applying the Strategy in 2022

During the year we continued to Invest, completing three 
acquisitions and entering into a strategic joint venture 
agreement with ArcelorMittal. In January 2022 we acquired 
Johnston Quarry Group, a specialist quarried materials 
supplier operating across the South West of Oxfordshire 
and Lincolnshire in the UK. In April 2022 we acquired 
RightCast, a supplier of bespoke precast concrete 
products, specialising in concrete stairs and landings, 
based in Yorkshire, UK. Then in July 2022 we acquired La 

Belonga, a high quality limestone quarry in the North of 
Spain, followed in September 2022 by the strategic JV with 
ArcelorMittal to produce net-zero lime via the construction 
of three new lime kilns in Dunkirk, France.

Our platforms continue to focus on Improving their 
businesses, as demonstrated by the increased financial 
performance of the Group despite numerous operational 
challenges during the year. At Group level we have 
centralised commercial insurance coverage and engaged a 
consultant to manage the Group’s energy requirements and 
hedging portfolio.

Recently acquired businesses, such as JQG, RightCast 
and La Belonga, continue to be Integrated into the wider 
Group network. As we have done consistently to date, 
we will look to integrate our newly acquired business and 
continue to unlock synergies where appropriate.

We continue to Innovate through various new and 
ongoing initiatives, including expanding the market 
reach of Greenbloc, our strategic collaboration with 
Marshalls, piloting Aqualung in Scandinavia with a view to 
decarbonising the Group’s kiln network, digitising safety 
reporting through HighVizz and developing other low carbon 
solutions such as ultra-low carbon offerings for ready-mix in 
the Channel Islands.

Based on our strategy, since inception and during 2022, we 
have been able to continue to grow through acquisition and 
organic growth.

With each business, by adhering to our investment 
principles and applying our Improvement and Integration 
programs, we have ensured both improved performance 
and value.

The power of the Platform

Since its inception our Group has operated using platforms 
as the core to its operating model. The reason for this 
structure is fourfold and underpinned by a search for 
the most effective architecture for a group active in the 
construction and minerals space.

The strategic logic

Construction materials and industrial minerals are produced 
from quarries and ancillary activities. These operations 
typically have highly localised markets as the product does 
not travel far. Service and proximity to the end customer are 
therefore key. Local platforms based around a small number 
of quarries which service these local markets are therefore 
tactically the most relevant unit. Their proximity to end 
market and end customer ensures highest service levels 
and agility to respond to changes in local dynamics.

The building blocks

Each platform consists of a small number of compatible 
assets, typically starting from a series of high-quality 
quarries. The output of the quarries is maximised to ensure 
all extracted materials can find a profitable use. This leads 
to horizontal integration along the quarry product spectrum 
and sometimes local vertical integration to maximise 
profitability at a local level. Each platform has a dedicated 
General Manager and Finance Manager to oversee the 

activities. They report under standard reporting frameworks, 
both operationally and financially. Operations are managed 
by one or more operations and commercial managers, who 
keep close contact to both end markets and production. 
Often the General Manager has a double role also taking 
responsibility for either sales or production thereby keeping 
the organisation light.

Operational autonomy

Operationally the platforms are designed to function with 
maximal autonomy. Following standard operating protocols, 
they are encouraged to manage their destiny as if they were 
independent businesses. This approach ensures maximal 
agility at a local level, thereby targeting proximity to the end 
customer, best in class service levels and decision speed.

Twice a month all platforms check in with central 
management to coordinate their local strategy. In between 
these formal meetings constant interaction with central 
management ensure a coordinated approach exists.

Operational flex

Given the local nature of the business and the agility of 
the platforms is a key driver of the strategy. When market 
conditions change, given the proximity to the end market, 
the platforms can respond rapidly and address these 
changes. When input costs rise or change because of 
macro-economic changes, the local platforms can rapidly 
adjust their operating methods accordingly.

As a result of this structure, our fixed to variable cost 
structure is much skewed to variable with nearly 70% of 
the costs being variable. Only an agile and locally focussed 
business can take advantage of this fact and adjust its 
operations to match market conditions. This was achieved 
during the many complicated years we have faced since 
starting the company, be is Brexit, Covid or the Ukraine 
conflict.

Targets and controls

A highly decentralised operating structure needs clear 
targets and clear controls. These are in place through 
various layers which cross and therefore present several 
interactions points. Financial and reporting and cash 
standards are identical for all operations. Operational 
performance is controlled through target metrics and output 
targets. Capital expenditure requires group sign-off and 
or centralised management to ensure maximal efficiency 
when capital is spent. As a result each platform’s evolution 
is monitored on various levels to ensure operational and 
financial performance.

34

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SigmaRoc PLC

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35

 
STRATEGIC REPORT
Standardised model for an agile structure

STRATEGIC REPORT
Ten platforms across three regions

OPERATING MODEL
OPERATING MODEL

WHERE ARE WE NOW?
WHERE ARE WE NOW?

EXPANDING LOCALLY USING PLATFORMS AS A STRUCTURE
EXPANDING LOCALLY USING PLATFORMS AS A STRUCTURE

NORTH WEST

NORTH EAST

 PPG

 Wales

 England

 Channel Islands

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The Group

Made of 3 regions 

Region

defined by geography
run by

RMD

RFD

Made of 1-4 platforms 

Platform

defined by product type
£10-20 million EBITDA
c. 200 colleagues

run by

Managing 
director

Finance 
director

Made of 1-4 businesses

Business

£3-10 million EBITDA

run by

General
manager

Finance 
manager

North-East
Region

North-West
Region

West
Region

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 Dimension Stone

 Benelux

 Nordkalk High-Grade

 Nordkalk Baltics

 Nordkalk Quicklime

 Nordkalk Central Europe

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37

 
STRATEGIC REPORT
Our end-markets

STRATEGIC REPORT
Lime as an essential product

CONSTRUCTION

Lime is an essential element in the production of a series of other products, such as sugar, paper and glass.

1

2

3

  Sugar

  Paper

Glass

4

5

6

  Plastics

  Plaster

Aluminium

7

8

9

  Soil stabilisation

10

  Water Treatment

  Agriculture

Asphalt

11

  Iron & Steel

12

  Flue Gas Purification

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Products: Aggregates, Cement, Ready-Mix Concrete & Concrete Products, Asphalt, 
Building Stone, Dimension Stone

Customers value the quality and consistency of our ready-mix concrete products, 
the breadth of our portfolio, our expertise in large projects and our flexibility and 
reliability. We also offer a range of innovative concretes including Greenbloc, our 
ultra-low carbon concrete blocks.

CHEMICAL INDUSTRY

Products: Quicklime, Slaked Lime

The chemical industry uses limestone-based products in the neutralisation and 
cleaning of process and waste waters, and as raw material and filler in various 
chemical processes. For example, both limestone products and slaked lime are 
needed in order to produce the calcium chloride spread on roads to reduce dust 
and slipperiness.

METAL & MINING

Products: Quicklime, Slaked Lime

To remove impurities from ores, quicklime is added and the mixture is melted at 
high temperatures. The silicates bond with the lime to form a liquid called slag, 
which is immiscible with the molten metal. This slag, which is full of impurities, can 
be easily drained out, leaving behind the purified metal. It is used to make calcium 
supplements. Inside the human body, calcium oxide reacts with water to form 
calcium hydroxide which later breaks down into calcium and hydroxyl ions to be 
absorbed by the body.

PULP, PAPER & BOARD

Products: GCC, PCC, Quicklime, slaked lime, limestone powder

The paper and cardboard industries use lime-based coating pigments and fillers 
such as GCC (Ground Calcium Carbonate). GCC is made from concentrated and 
fine-ground calcium carbonate and used to make fine paper, cardboard packaging 
and pulp-based paper.

ENVIRONMENT & AGRICULTURE

Products: Quicklime, Slaked Lime, Limestone Powder, Agrilime, Fodder

Although widely known as Soil Stabilisation, there are a number of distinct 
processes which can be carried out by the addition of quicklime to waterlogged, 
clay bearing or contaminated land. Improvement is the first process step, which 
is the drying out of water bearing material by the heat generating reaction with 
quicklime, this also converts some of the free water to hydrated lime. Using this 
process, it is possible to convert an unworkable site into a solid working platform 
providing a base for construction development, or alternatively as a potential area 
for agricultural use.

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6

7

8

2

5

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10

11

12

9

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39

  
  
  
 
STRATEGIC REPORT
End-markets diversity means greater resilience and  
more opportunity

STRATEGIC REPORT
Each quarry can serve many markets

MINERALS

COLLEAGUES

1.6bnt

c.2050

SITES

84

PLATFORMS

REGIONS

10

3

QUARRYING OPERATIONS

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QUICKLIME

GRINDED

AGGREGATES

DIMENSION STONE

Kiln sites | 9 
Slaking sites | 4 
Production | ~ 722 Kt

JV factory in 
Lappeenranta (SKOY)

Crushed limestone 
(various sizes)

Limestone grinding  
and screening | 15

Crushed granite

Production of 
Belgian bluestone | ~ 
900,000sqm

DOWNSTREAM 
PRODUCTS

Concrete plants | 14 
Asphalt plants | 5

9% 

3% 

6% 

20% 

17% 

22% 

20% 

2% 

PULP, PAPER  
&  
BOARD

14%

METALS  
& 
MINING

10%

ENVIRONMENT
&  
AGRICULTURE

CONSTRUCTION
& 
INFRASTRUCTURE

PAPER, BOARD  
&  
GCC

14%

57%

14%

CASE STUDY: CARRIERES DU HAINAUT

Carrieres du Hainaut is one of our largest operations 
in Belgium, where we produce around 1.5m tonnes 
of construction aggregates, 1m square metres of 
dimension stone and 15k tonnes of high grade 
powder annually. The quarry therefore services major 
infrastucture projects, interior design of the highest level, 

as well as the chemical industry. Our extraction effort, 
whether we extract one of these products or all of them 
is broadly the same.

Our operating model focusses on horizontal integration, 
control of our operating cost and increasing margins. 
That is the consequence of our business model.

FY22 REVENUE SPLIT BY COUNTRIES
FY22 REVENUE SPLIT BY COUNTRIES

Finland

UK

Benelux

Sweden

Poland

Channel Islands

Baltics

Other

28%

20%

16%

13%

11%

6%

4%

2%

FY22 REVENUE SPLIT BY MARKETS
FY22 REVENUE SPLIT BY MARKETS

Infrastructure

Residential

Pulp, paper and board

Metals and mining

Environment

Agriculture

Chemical

Other

32%

25%

14%

10%

7%

7%

4%

2%

FY22 REVENUE SPLIT BY PRODUCTS
FY22 REVENUE SPLIT BY PRODUCTS

Industrial minerals
Industrial minerals

Quicklime

Limestone powder

Other

Construction minerals
Construction minerals

Aggregates

Ready-mix and concrete products

Asphalt and surfacing

Other 

Dimension stone

22%

20%

2%

20%

17%

6%

3%

9%

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SigmaRoc PLC

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STRATEGIC REPORT
Sustainable long-term growth track record

ALLEN  
CONCRETE
6.3x

RONEZ*  
& SIGMAGSY
9.0x

POUNDFIELD
6.8x

CCP
5.9x

HARRIES
7.8x

CUVELIER

4.4x

B-MIX 
3.9x

CASTERS 

3.9x

GDH
1.0x

JOHNSTON
7.6x

RightCast
5.0x

CARRIERES DU 
HAINAUT
6.8x

NORDKALK
6.9x

LA BELONGA
7.0x

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FY22 REVENUES
£538m

CAGR
>80%

FY22 EBITDA
£101.7m

CAGR
>80%

0.2p

2.0p

3.8p

4.2p

4.5p

5.4p

8.0p

CAGR
>170%

TARGET <2.0X 

FY16

FY17

*Ronez was acquired in December 2016

1.63x

FY18

2.07x

FY19

1.69x

FY20

1.70x

FY21

1.77x

FY22

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STRATEGIC REPORT
Acquisition strategy

M&A AT A GLANCE
M&A AT A GLANCE

6

number of years 
since company 
inception

16

number of ongoing 
projects

16

closed acquisitions 
as of 2023

130

number of projects 
considered since inception

TARGET CONSIDERATION
TARGET CONSIDERATION

Financial factors
Financial factors

Qualitative factors
Qualitative factors

Post acquisition
The Group has 5 imperatives in order to make sure that the 
M&A deals bring value:

 ─ Aggressively pursue synergies according to objectives 

of the integration;

RECOGNISED 
TRACK RECORD

CORE 
REGIONS

 ─ Keep the current business strong by involving current 

customers in the integration process;

EARNING 
ENHANCING

QUALITY
ASSETS

CLEAR GROWTH
POTENTIAL

STRONG CUSTOMER
RELATIONSHIPS

 ─ Improve the operating model of the business if 

necessary;

 ─ Rigorously manage cultural integration and change 

management if necessary;

 ─ Actively communicate with the newly acquired 

business.

Lessons learned
 ─ We use a full potential approach to identify all possible 
areas of improvements rather than simply the obvious 
ones;

 ─ In a post-pandemic world, the Group continues to 

proceed carefully in order to make new acquisitions at 
the right time;

 ─ Rigour and speed continue to be key in the execution 

of the acquisition plan.

STRATEGIC REPORT
Improving every business, driving enhanced returns

EBITDA IMPROVEMENT
EBITDA IMPROVEMENT

Invested EBITDA

Improved EBITDA

GROUP PRE NORDKALK

NORDKALK ONLY

GROUP TOTAL

+8%

+20%

+40%

2017-2020

2017-2020

2021-2022

2021-2022

2017-2022

2017-2022

EBITDA ACQUISITION MULTIPLES

6.9x

4.9x

6.9x

6.4x

6.9x

5.9x

Pre synergies

Post synergies & improvements

EPS
(p/share)

16-22 CAGR
171%

Expansion
400.0x

0.2p*

2016

Previous years

Current reporting year

8.0p

3.8p

4.5p

2018

2020

2022

*Based on Ronez numbers

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Regions  
and platforms

STRATEGIC REPORT
New group structure

Following the transformational acquisition of Nordkalk in August 2021, the Group’s geographical 
footprint, product offering, and end-user markets changed substantially. Whilst wishing to retain 
the established platform model, which has proven effective in ensuring the businesses remain 
locally focused and agile, we saw the potential to enhance this through additional Group level 
structure to support further growth and expansion.

We have augmented our platforms with an overarching 
regional structure. Each region has a Managing Director 
and Financial Director who are responsible and accountable 
for overseeing performance, steering development, and 
driving growth. While these roles and responsibilities are 
new, the people occupying them are not. They are either 

MDs and FDs of platforms within the region, taking on a 
larger remit but retaining their prior responsibilities, or they 
are incumbents in the role (but with a new title) and the 
organisation beneath them has been reorganised, such is 
the case with Nordkalk.

The new regional structure aligns the Group as follows:

Region

MD

FD

Countries

Platforms

North West

Michael Roddy

Michael Crump

UK

Channel Islands

West

Emmanuel Maes

Dean Masefield

Belgium

Netherlands

Luxembourg

Northern France

North East

Paul Gustavsson

Marcel Gestranius

Finland

Sweden

Poland

Norway

Estonia

Latvia

Lithuania

Spain1

PPG

England

Wales

Channel Islands

Dimension Stone

Benelux

Quicklime

Nordics

Poland

Baltics

1  La Belonga was acquired by Nordkalk and currently reports into the North East region; this will be reviewed as the Group develops.

At a product level, the Group has defined three core product categories which it uses to assess performance, being industrial 
minerals, construction minerals and dimension stone.

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STRATEGIC REPORT
New group structure 

Industrial minerals are higher-grade limestone products, 
produced from quarried limestone material which is 
processed into an ore and then ground into powders and 
granulates or burnt into quicklime, which can then be further 
processed through re-carbonation. Industrial minerals also 
include other high-grade specialised minerals such as 
dolomite and wollastonite. Industrial mineral customers are 
typically large national or multinational corporates under 
fixed annual supply agreements over long-term contracts. 
Predominantly these contracts include dynamic pricing 
mechanisms to adjust for changes in the price of key input 
costs such as energy and logistics.

Construction minerals are quarried lower-grade limestone 
or granite products, crushed to various size specifications, 
and sold as aggregate or processed into value-added 
products such as concrete blocks, pre-cast concrete, 
ready-mix concrete, and asphalt. Construction mineral 
customers range from:

 – Government Agencies for construction and maintenance 
of vertical and horizontal infrastructure such as roads and 
sea defences.

 – Large corporates for vertical and horizontal construction 

including commercial and residential.

 – Independent house builders and contractors.

 – Merchants and resellers including shipping agencies and 

wholesalers. 

 – Individuals and small businesses undertaking small 

projects and home improvements.

Dimension stone is natural limestone with unique 
characteristics (colour, texture, and pattern) which is 
quarried as large blocks, processed into slabs and then 
cut and finished to various specifications. Dimension stone 
is used in the construction market for infrastructure and 
residential projects as tiles, skirtings, paving, cladding 
and bespoke applications such as kitchen benches and 
swimming pools. Dimension stone customers include stone 
transformers and cutters, wholesalers, building merchants 
and contractors. Customer contracts range from multi-year 
development projects, structured supply arrangements and 
periodic or one-off orders.

In terms of end-markets, the Group broadly fits into two 
primary categories, being construction materials and 
industrial minerals.

Quicklime and high-grade limestone materials have many 
industrial applications, ranging from fillers in the production of 
cardboard to reactive agents in the treatment of flue gas, soil, 
and water. The Group’s industrial mineral markets comprise:

 – Pulp, paper & board: Quicklime is required in the 

closed chemical circulation of modern pulp mills, helping 
decrease environmental impact of the production 
process. Approximately 250 kg of quicklime is required 
to produce a tonne of pulp. Quicklime and limestone 
are also used as filler in the production of paper and 
cardboard and more broadly in effluent treatment.

 – Metals & mining: Quicklime and limestone are used in 

various metal production applications, including steel and 
copper production and metal recycling. Quicklime is also 
an important chemical for regulating various processes in 
the mining industry.

 – Environmental: Quicklime, slaked lime and limestone 
powders are used to remove acidic compounds such 
as sulphur, chlorine and fluorine from flue gas before the 
chimney. Quicklime and slaked lime are also used to treat 
water, raising the pH level of drinking water and reducing 
toxicity of wastewater.

 – Agriculture: Quicklime is critical in achieving sustainable 

and more productive agriculture, both in terms of 
livestock and farming. Limestone is also used to increase 
soil pH and in animal feed.

 – Chemical: Finely ground limestone powders are used as 
fillers in paint and adhesives. Wollastonite is also used to 
enhance properties of paint, plastics, and other unique 
applications.

Quarried limestone and granite minerals are used in 
the construction of roads, concrete, and other building 
materials. Construction materials markets are broadly 
categorised as either infrastructure or residential:

 – Infrastructure: Uses quarried limestone or granite 
minerals in the construction of large infrastructure 
projects such as roads, railways, bridges, ports, airports 
and commercial buildings. Primary products include 
aggregates, asphalt and contract services, ready-mix 
concrete, pre-cast concrete and dimension stone.

 – Residential: Uses quarried limestone or granite 

minerals in the construction of various forms of housing. 
Customers include large national housebuilders, 
developers, contractors and individuals. Primary products 
include aggregates, pre-cast concrete & concrete 
products, ready-mix concrete, and dimension stone.

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STRATEGIC REPORT

North West

The North West region is led by Michael Roddy and geographically covers England, Wales and 
the Channel Islands. It comprises four platforms which are detailed below. The North West is 
primarily focused on the construction industry, which accounts for 99% of revenue, and the 
core product group is therefore construction minerals, including pre-cast concrete & concrete 
products, ready-mix concrete, asphalt & surfacing, dimension stone and aggregates.

Michael Roddy 

North West MD and MD of PPG

With over 20 years’ experience working within the construction supply chain, Michael has been 
ExCo of SigmaRoc’s PPG platform since December 2017, during which time he has overseen 
the acquisition and integration of all platform entities. More recently Michael’s role has been 
expanded to MD of the North West region, which includes PPG and adds oversight of Johnston 
and Harries.

As MD of the North West, Michael is responsible for overseeing the growth and development 
of the region while also maintaining core focus on his role as MD of PPG. At PPG Michael is 
leading the development of the Greenbloc portfolio of ultra-low carbon concrete products, 
expanding the UK footprint of businesses and penetrating the European market.

Michael holds an MBA from Robert Gordon University and a bachelor’s degree in business from 
Dublin Institute of Technology.

Key metrics for the North West region during the year were as follows:

Financial metrics

Revenue

Underlying EBITDA

Underlying EBITDA margin

Sales volume metrics

Industrial mineral (tonnes)

Construction mineral (tonnes)

Dimension stone (m3)

Operational metrics

People

Reserves and Resources (tonnes)

Sites

2022

£139.5m

£30.0m

21.5%

2022

-

3.3m

3.2k

2022

669

188.5m

35

2021

£103.3m

£18.0m

17.4%

2021

-

2.6m

-

2021

551

101.3m

27

Change

+35%

+67%

+410bps

Change

-

+26%

-

Change

+21%

+86%

+30%

Reported revenue and Underlying EBITDA were both up 
YoY in 2022, reflecting the impact of the acquisitions of 
JQG and RightCast, together with organic improvement 
in the underlying businesses, which saw YoY LFL revenue 
growth of 15% and Underlying EBITDA growth of 18%. The 
primary drivers of the organic improvement are PPG and 
in particular Poundfield, which more than doubled EBITDA 
YoY, and Wales, where Harries had strong sales that carried 
through into EBITDA which was up 25% YoY.

Construction mineral volumes were up as a result of the 
JQG and RightCast acquisitions. On a YoY LFL basis, 
volumes were down slightly across all platforms in the North 
West, with most of the softening occurring in the second 
half of 2022.

It is testament to the quality of the management teams in 
the North West that they were able to increase earnings 
while experiencing softening volumes.

Michael Crump 

North West FD and FD of PPG

Michael joined SigmaRoc in 2019 and is currently Finance Director 
for the North West region and the PPG Platform. In these roles 
Michael is responsible for transforming the financial processes from 
legacy systems to an integrated group structure. Furthermore, 
Michael has led the development of financial analysis and reporting 
to support the investment and growth of the businesses.

Michael began his career in audit, initially in Australia and later in the 
UK with BDO. After qualifying he spent a number of years in various 
finance roles within Jaguar Land Rover. Michael holds a Bachelor of 
Commerce from Griffith University, Australia and is a member of The 
Institute of Chartered Accountants in England & Wales.

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At CCP, a new asset care strategy was implemented to 
generate operational efficiencies, and continued investment 
in technology has further enhanced our ultra-low carbon 
concrete (ULCC) offering in line with our commitment to 
provide a tangible approach to decarbonisation within the 
built environment. The long-term outlook of our Aberdo 
quarry was strengthened through investment in a large 
capacity wash plant, giving us the potential to release 
approximately 5 million tonnes of limestone reserve, currently 
constrained by material that was designated as waste, but 
will now be commercialised.

Allen Concrete had another successful year, maintaining 
continued high service levels, which coupled with close 
relationships to our loyal customer base, resulted in a strong 
customer retention rate within a competitive market. All 

Platform Metrics 

Key metrics for the PPG Platform during the year were as follows:

products at our Wellingborough plant are manufactured 
using limestone cement (CEM2), which is further progress 
in our commitment to decarbonisation. We have invested in 
additional plant and machinery at our Wellingborough site, 
reducing lead times, strengthening our product offering and 
reducing operating costs.

In April 2022, we added RightCast to our platform, and 
shortly after secured the largest order in its history, being a 
new Amazon fulfilment centre in Birmingham. The units were 
designed, manufactured, and delivered to a tight schedule, 
with the final delivery in September 2022. The successful 
completion of the project has led to multiple enquiries for 
similar larger scale work, which is only serviceable following 
investment made post acquisition.

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Reserves and Resources (tonnes)

Sites

2022

249 

13.8m

8

2021

192

14.1m

7

Change

+30%

-2%

+14%

The PPG Platform welcomed 25 new people when the Group acquired RightCast and the remaining 32 person increase is 
primarily due to expansion within the Poundfield bespoke division.

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STRATEGIC REPORT
PPG

PPG is a group of companies specialising in manufacturing precast concrete products and 
blocks. The platform includes Allen Concrete, Poundfield Products, Cheshire Concrete Products 
and more recently RightCast. With a triangulation of bases in London, on the East Coast and in 
the North West, PPG supply a wide and diverse range of industries ranging from house builders 
and farmers to national sea defence projects and international contractors, both directly and 
through merchants. The PPG companies are some of the most experienced and innovative in 
their industry; some operating for over 70 years and collectively owning a significant number of 
patents and licences. 

Platform Highlights 

2022 has been a hugely successful year for the PPG 
platform.

Maintaining the health and well-being of our staff remained our 
most important objective and 2022 saw an increased focus 
on behavioural safety techniques, which has led to a reduction 
in incident severity and frequency. Safety pitstops were 
completed across the platform with focus on mental health 
awareness and wellbeing, further enhancing the proactive 
safety culture.

Our commitment to developing our people saw many senior 
appointments across the platform via internal promotion. 
Furthermore, we successfully launched an apprenticeship 
programme from which 11 new apprentices were hired.

In terms of business performance, Poundfield had a record 12 
months, increasing revenue by 45% over the previous year. 
This expansion followed a focus across a range of commercial 
activities, in particular the bespoke division, where we have 
expanded our project capabilities and market opportunities. 
The uplift in financial performance has been supported by 
operational improvements that have been implemented 
over the past year. Significant capital investment has been 
deployed at Creeting quarry, increasing storage capacity, and 
preparing the business for further growth. The Llay facility also 
received investment in plant and people, which has yielded an 
increase in production capacity. Other highlights include our 
collaboration with B-Mix to develop our first precast concrete 
facility in Europe and attaining ISO 90001 accreditation.

Our commitment to developing our people 
saw many senior appointments across the 
platform via internal promotion. 

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STRATEGIC REPORT
England

Following the acquisition of the Johnston Quarry Group in January 2022, the Group established its 
England Platform focusing on quarried and mined limestone for the construction market.

Johnston is a specialist quarried materials supplier producing 
construction aggregates and premium quality building 
stone, as well as agricultural lime for soil improvement. 
Its aggregate products are typically used in infrastructure 
projects, with its unique Cotswolds Ironstone and Bath 
Stone used in specified high end housing applications.  

The business currently consists of four quarries, three mines 
and two separate stone processing sites located across 
the Southwest, Oxfordshire, and Lincolnshire. Johnston 
has access to 86 million tonnes of freehold and leasehold 
reserves giving it an average life of over 40 years.

Platform Highlights 

Maintaining the health and well-being of our staff remained our most 
important objective across all our businesses and 2022 saw an 
increased focus on behavioural safety techniques which has led to 
a reduction in incident severity and frequency. Safety pitstops were 
completed across our platform, with the focus on mental health 
awareness and wellbeing further enhancing our proactive safety 
culture. The feedback from our colleagues has been very positive. 

The financial performance of JQG has been supported by a full 
review of operating costs and savings being realised by integrating 
many parts of the SigmaRoc supply chain. Coupled with this, a 
detailed and forensic operational review allowed us to increase 
production without the need for additional investment. An in-depth 
review of all commercial activities delivered an improvement in both 
revenue and margin. Continued high levels of customer service, 
close relationships with our customer base and high-quality 
products have led to high levels of customer retention throughout 
the year.

Our Bath Stone Group had an impressive year, exceeding 
expectations both in terms of financial performance and 
operational improvements. The company has an impressive order 
book and increased production capacity leading into 2023. We 
will soon begin secondary processing of historic and new waste 
streams to provide additional income and make available valuable 
void space, which will support continued growth and increased 
market share in the coming year.

Building Stone is the processing and stone masonry arm of 
Johnston Quarry Group. The business delivered exceptional 
results in 2022. Immediate investment in additional production 
facilities whilst improving the efficiency of the current operations 
allowed for an increase in sales and margin. Like Bath Stone 
Group, Building Stone has a strong order book as we head  
into 2023.

Within our quarries division, we witnessed increased levels of 
production, an improved health & safety culture and investment 
across all sites that helped deliver further growth within the 
year but more importantly sets the business up for continued 
sustainable profitable growth over the coming years.

The most encouraging and satisfying aspect to the year within JQG 
was the cohesive integration of the business, its people, supply 
chain and their loyal customers into the wider SigmaRoc Group.

Looking forward, more opportunities remain in all sectors of the 
business to further improve efficiencies and output, the group to 
continue to take a share of the higher end of the market, where 
revenues and margin remain strong.

Platform Metrics 

Key operational metrics for the England Platform during the year 
were as follows:

2022

2021

Change

People

Reserves and Resources 
(tonnes)

Sites

74

90.8m

7

-

-

-

n/a

n/a

n/a

The England Platform was established when the Group acquired 
JQG in January 2022, hence there are no 2021 comparatives.

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STRATEGIC REPORT 
Wales

Harries is the cornerstone for SigmaRoc’s Welsh 
platform. Following the Group taking 100% ownership 
in September 2020, we have a significant footprint in 
the region with opportunities to expand the businesses 
organically and acquisitively.

Harries is one of Wales’ largest independent suppliers of 
aggregates. Based in West Wales, it operates out of six 
granite and limestone quarries incorporating three asphalt 
plants, eight concrete plants, and a wharf operation, as 
well as a civil engineering division delivering significant 
infrastructure projects.

Harries now forms part of the North West region and is 
therefore overseen by Michael Roddy, who is also acting 
as interim MD to the platform. Following the award of the 
SWTRA contract and in preparation for tendering of the 
NMWTRA contract, the business has been restructured into 
two divisions:

1.   Construction Materials, which focuses on aggregate and 

ready-mix concrete and is led by Simon Lewis.

2.   Construction Services, which focuses on civil engineering, 
road surfacing, road construction and asphalt and is led by  
Nick Cleary. 

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Platform Highlights 
  The Wales Platform achieved significant organic growth during 
2022, with EBITDA increasing by 25% YoY, which is attributed 
to strong price improvements and better operational efficiency.

To maximise profitability, Harries was restructured into two 
divisions, being Construction Materials, focused on quarried 
materials and ready-mix concrete, and Construction Services, 
focused on civil engineering and road surfacing. This allowed 
for improved operating focus and clear profit and loss 
responsibilities.

Strategically, the Wales Platform secured a position on the 
SWTRA surfacing framework, which is worth an estimated 

£12 million in net sales over three years. Additionally, it 
acquired a strategic location and planning permission to 
expand its asphalt business along the M4 motorway corridor 
to Swansea.

Innovation has been a key focus during 2022, with Harries 
launching its first asphalt product containing recycled nappy 
fibres to be used in road construction. Harries also invested 
a total of £1.5 million in CapEx, including an upgrade of the 
primary crusher at its flagship Bolton Hill quarry.

With regard to sustainability, Harries completed a carbon 
baseline assessment and a net-zero reduction plan, which 
will be supported by internalising renewable energy sources.

Platform Metrics 

Key operational metrics for the Wales Platform during the year were as follows:

People

Reserves and Resources (tonnes)

Sites

2022

209

73.5m

14

2021

219

76.5m

14

Change

-8%

-4%

-

Operational efficiency improvements in the Wales Platform have led to a reduction in headcount during 2022.

Harries is the 
cornerstone for 
SigmaRoc’s Welsh 
platform following 
the Group taking 
100% ownership in 
September 2020

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STRATEGIC REPORT
Channel Islands

Ronez’s operations supply the Channel Islands with aggregates, ready-mixed concrete, 
asphalt and precast concrete products and services. Operating out of multiple sites across 
Jersey and Guernsey with satellite offerings on other islands, Ronez offers a full range of high-
quality construction products and services. The creation of a shipping division, SigmaGsy, by 
SigmaRoc upon acquisition of Ronez has helped with transporting dry-bulk materials to and 
from our own sites as well as third party sites in the UK and Europe, resulting in higher profits 
and operational efficiency.

Mike Osborne 

Managing Director

Mike Osborne is the Managing Director of the Channel Islands 
platform, reporting directly to the CEO, having previously been 
Managing Director from 2007 until the company was acquired 
by SigmaRoc in 2017, and has been responsible for Ronez’s 
strategic direction and operational management.

Ronez continues to be a cornerstone asset of SigmaRoc, 
delivering consistently strong results with a history of riding the 
economic cycle normally associated with the UK.

Ronez won the JE Sustainability Award in 2022 at the Jersey 
Construction Awards. In previous years, they have also won 
the Best Use of Innovation Awards (2019 and 2021).

Platform Highlights

The Channel Island Platform navigated a difficult year very 
successfully, reporting YoY EBITDA growth of 5%, despite 
facing a challenging mix of rising inflation, substantial 
increases in production input costs and raw materials, whilst 
market volumes softened in most product segments.

The operating cost benefits arising from the ongoing 
investments in plant and machinery continued to boost 
productivity and help unit cost of production. Strategic 
procurement of raw materials and efficient hedging reduced 
exposure to market volatility, which benefited our customers 
as well as our own business.

Whilst making good progress on short term trading 
objectives, the long-term security of the business was further 
enhanced when planning consent was granted to develop 
a new quarry operation at Chouet Headland in Guernsey. 
Extraction at the new site, which replaces Les Vardes Quarry, 
will commence during 2023 and will provide 4 million tonnes 
of aggregate through its anticipated life. With development 
on the Jersey quarry extension, which was secured in 2021, 
already underway, the long-term security of the Ronez 
operations is extremely strong.

Construction activity in Guernsey strengthened which was 
reflected through improved concrete volumes. The outlook 
for house building is encouraging and re-development of 
health and educational facilities will underpin further progress 
in 2023. In Jersey, the anticipated pipeline of construction 
projects was beset by delays arising from political decisions 
and planning hurdles, but the underlying need for housing is 
profound and the island’s inadequate health facilities, ports 
and other infrastructure need considerable investment, so 
the outlook remains optimistic.

Platform Metrics 

Key operational metrics for the Channel Islands Platform 
during the year were as follows:

2022

2021

Change

People

140

139

+3%

Reserves and 
Resources (tonnes)

10.3m

10.6m

-3%

Sites

6

6

-

During 2022, planning consent was granted in respect of 
the Chouet headland in Guernsey, which enhances the 
availability of reserves (previously classified as resources).

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STRATEGIC REPORT

West

The West region is led by Emmanuel Maes and geographically covers Belgium, the 
Netherlands, Luxembourg and Northern France. It comprises the Dimension Stone and Benelux 
platforms, which are detailed below. The West is solely focused on the construction industry 
and the core product groups are dimension stone and construction minerals.

Key metrics for the West region during the year were as follows:

2021

€84.5m

€19.8m

23.4%

2021

2.1m

0.9m

2021

484

271.7m

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Change

+21%

+10%

-220bps

Change

+15%

-

Change

+2%

-1%

-

Financial metrics

Revenue

Underlying EBITDA

Underlying EBITDA margin

Sales volume metrics

Construction mineral (tonnes)

Dimension stone (m2)

Operational metrics

People

Reserves and Resources (tonnes)

Sites

2022

€102.5m

€21.7m

21.2%

2022

2.4m

0.9m

2022

496

269.1m

6

Revenue and Underlying EBITDA are up YoY through 
a combination of full year contributions from B-Mix and 
GduH in 2022, plus organic improvement in the underlying 
businesses, with YoY LFL revenue up 16% and Underlying 
EBITDA up 5%. B-Mix and GduH operate at lower 
margins than CDH and therefore their full year contribution 
has resulted in some margin erosion, which was further 
impacted by pass-through of inflationary costs.

The primary drivers of the organic improvement in the 
West region are the Benelux Platform, in particular B-Mix 
which increased Underlying EBITDA by 8%, and improved 
overall performance from Cuvelier.

Construction mineral volumes were up as a result of the 
full year contribution from B-Mix and also higher volumes 
from Cuvelier. On a YoY LFL basis, volumes were up 11% 
driven by YoY increase from Cuvelier and also improved 
LFL performance from B-Mix, which was up 18% on a 
LFL basis.

Dimension stone volumes were steady at 0.9m square 
metres which is in-line with revenue.

Emmanuel Maes 

West MD and Head of M&A

Emmanuel joined SigmaRoc in 2019 and has been instrumental in developing the Group’s 
business in Europe. Previously Emmanuel served as CEO of Group De Cloedt (2004-2018), a 
Belgian company specialising in dredging, production and commercialisation of sand, gravel 
and hardstone, building the business from €40 million to €240 million annual turnover, through 
organic growth and acquisitions.

Dean Masefield 

West FD, Deputy Group CFO and Director of IR

Dean has occupied numerous roles within the SigmaRoc Group, initially as Finance Director 
of the Channel Islands Platform, then as Finance Director of SigmaRoc, and more recently as 
Deputy CFO and Director of Investor Relations. Prior to joining SigmaRoc, Dean held several 
roles within the finance industry in Jersey, predominantly in trust companies and banks, 
including a Head of Finance role at BNP Paribas. Dean started his career providing audit, 
accountancy, and tax services and qualified with BDO in Jersey. Dean is a fellow of the Institute 
of Chartered Accountants in England and Wales.

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STRATEGIC REPORT
Dimension Stone

CDH is the world’s largest producer of Belgian blue limestone. CDH presently produces around 
115,000 cubic metres of blocks, together with around 800,000 square metres of sawn blocks, 
of high quality Belgian Bluestone per year, a high-grade dimension stone produced exclusively 
in Belgium under European protected status. Belgian bluestone can be found in infrastructure 
and residential projects across the globe.

Our Dimension Stone platform is well positioned with 
reserves and resources of over 150 million tonnes of 
construction aggregates and over 28 million cubic metres of 
high quality Belgian Bluestone. The business employs over 
420 people and has a proud history, dating back 130 years.

Due to its high quality and distinctive characteristics, 
Bluestone is a Global Heritage Resource and a sought-
after product that travels worldwide (unlike most aggregate 
products). Bluestone can be used in residential, commercial 
and infrastructure projects, as well as for architectural and 
cosmetic applications.

Christophe 
Huyghebaert 

Managing Director of 
CDH

The Managing Director 
of CDH is Christophe 
Huyghebaert, who 
joined SigmaRoc in 2021 to manage the 
Group’s dimension stone platform. Prior to 
joining SigmaRoc, Christophe worked for 
Heidelbergcement Benelux. He has held different 
management positions in cement, aggregates and 
concrete operations.

Swimming pool made out of bluestone tiles from Carrières du Hainaut

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Platform Highlights 

Safety: Continued focus on training of workforce to 
increase safety awareness and behaviour, with an emphasis 
on LMRA (Last Minute Risk Assessment). Development 
of 5S culture and organisation of the work-floor, with 
implementation of TMP (Traffic Management Plan).

Environment: Completed a successful feasibility study 
for the construction of two windmills on site, and now in 
the process of applying for the necessary building permits. 
Achieved first shipments for sales of sawing fines, with new 
markets and applications being actively explored.

Performance: CDH maintained strong sales volumes across 
all product segments and key geographic markets. Bluestone 
was specifically used for new offices at Euralille in Lille, the 
development around Penn Station New York, modernisation of 
the railway station in Leuven and the city centres of Charleroi 
and Gembloux.

Operations: Extension towards the new extraction area 
commenced, with the building of a new public access road 
around the quarry on track. CDH also implemented a new 
computer aided maintenance management system to improve 
preventive maintenance processes. Increased electricity costs 
were partially offset by the newly installed onsite solar farm, 
with 25% of CDH electricity requirements covered by solar 
installations. CDH is working to increase its solar capacity.

Platform Metrics 

Key operational metrics for the Dimension Stone Platform during the year were as follows:

People

Reserves and Resources (tonnes)

Sites

2022

405

73.5m

1

2021

396

73.9m

1

Change

+2%

-1%

-

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STRATEGIC REPORT
Benelux

Following the Group's takeover of all LafargeHolcim’s production installations located at CDH in 
April 2021, shortly followed by the acquisitions of the B-Mix and Casters businesses in Belgium, 
SigmaRoc created the Granulats du Hainaut aggregates brand and separated its European 
heavy-side materials operations into two separate platforms. 

CDH continued as a Europe wide dimension stone 
platform and a new, integrated, concrete and construction 
aggregates Benelux platform was created, including the 
GduH, Stone Holdings, B-Mix and Casters businesses. 
There are 199.9Mt of aggregate reserves and 15.3Mt of 
aggregate resources attributable to the Benelux platform, in 
addition to the CDH bluestone reserves and resources.

The Benelux platform produces over 2 million tonnes of 
aggregates and over 250,000 m3 of concrete, servicing 
the Hainaut, Liege and Limburg Market. Our aggregate 
products supply a range of partners and construction 
companies with products for concrete, sea defence work 
and riverbank fortification.

Dirk De Leus

Managing Director Benelux

The Benelux platform is overseen by Dirk De Leus. Dirk has over 30 years of experience in the 
construction industry in the aggregates, ready-mix concrete (General Manager Inter-Beton) 
and cement markets in Belgium (General manager of Cemminerals). Dirk joined SigmaRoc 
in April 2022 as general manager of the Benelux platform. He oversees, integrates, and 
streamlines all the ready-mix and aggregate businesses in Benelux. His main priorities are to 
grow the business, to professionalise and to make our Benelux business more sustainable. 
Dirk holds a degree of commercial engineer of the University of Leuven. 

Platform Highlights 

–    Appointment of Dirk De Leus as Managing Director.

–      Ready-mix concrete plants had a very good year, with 
strong volumes and even higher sales prices which 
enabled input cost inflation to be passed through, 
resulting in stable margins.

–       The Cuvelier quarries had a very good year also, with 
strong market demand leading to increased volumes 
and stable margins.

–      Finally, the volumes of Granulats du Hainaut, our 
quarry in Soignies, were not up to expectations. 
Nevertheless, final plans were made for the new 
crushing installations, which will replace the old plant 
of Holcim in 2025, in collaboration with our 25% 
shareholder Carrières du Boulonnais. The choice of 
the supplier will be finalised in 2023.

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Platform Metrics 

Key operational metrics for the Benelux Platform during the year were as follows:

People

Reserves and Resources (tonnes)

Sites

2022

91

195.6m

5

2021

88

197.8m

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Change

+3%

-1%

-

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STRATEGIC REPORT

North East

The North East region comprises Nordkalk, which has recently been reorganised into four 
primary platforms, each of which is expanded upon below. Nordkalk is the leading company 
providing limestone-based products and solutions in Northern Europe. Delivering essential 
raw material to numerous industries and focusing on sustainable solutions, Nordkalk helps our 
customers reduce their environmental impact. The company’s solutions contribute to clean 
air and water as well as the productivity of agricultural land. With over 800 employees and a 
rich history spanning over a century, the North East region consists of more than 40 locations 
across 10 countries.

Limestone is found in many products: it is an essential 
input used in numerous industries including construction, 
agriculture, environmental protection, chemicals, metals 
& mining and pulp & paper. In addition to the traditional 
segments served since inception, the Company keeps 
opening new frontiers through innovative applications. 

Circular economy products comprise 12% of Nordkalk 
sales volumes and the Company aims at increasing  
this number. Nordkalk has a long history of using its  
by-products which results in its material efficiency being 
more than 90% and rising.

Regional Highlights

–     Improved health & safety performance with LTIFR at 

historically low level.

–     Launched six new sustainable products, with focus on 

circular solutions. 

–     Successfully managed energy cost increases through 

dynamic pricing and flexible working schedules.

–     Strategic reorganisation to provide focus on quicklime, 

bolster Nordic limestone and carbonates business 
and create a new Baltic region to seize market 
opportunities.

–     Significant steps in sustainability by implementing tests 
with renewable fuels and by planning the first carbon 
capture facility to be installed in Q1 2023.

–     Investment in future growth and securing long term 
reserves by acquiring a major high-quality limestone 
reserve in La Belonga, located near Oviedo in Spain.

Key metrics for the North East region during the year were as follows:

Financial metrics

Revenue

Underlying EBITDA

Underlying EBITDA margin

Sales volume metrics

Industrial mineral (tonnes)

Construction mineral (tonnes)

Operational metrics

People

2022

€365.3m

€72.5m

19.8%

2022

3.2m

11.0m

2022

827

Reserves and Resources (tonnes)

1,142.0m

Sites

43

2021

€111.8m

€22.3m

19.9%

2021

1.2m

3.7m

2021

821

962.1m

43

Change

+227%

+225%

-10bps

Change

+172%

+194%

Change

+1%

+19%

+2%

Financial and sales volume metrics are skewed YoY due to only a four-month contribution to the Group from Nordkalk in 2021. 
On a YoY LFL basis, North East revenue was up 22% and Underlying EBITDA up 12%, with volumes up on average by 1%.

Revenue was up primarily as a result of dynamic pricing and contractual pass-through of input cost inflation, while Underlying 
EBITDA improved through a combination of operational improvements, cost control and hedging strategies.

Weaker volumes for high-grade limestone in the Nordics, due to the union strike in Finland, and some softening in aggregates 
demand in Poland, was offset by stronger aggregates demand in the Nordics and Baltics.

Paul Gustavsson 

North East MD and  
CEO of Nordkalk

Paul joined Nordkalk as CEO in 
2019. Prior to joining Nordkalk, Paul 
was CEO of Britax from 2015-2018. 

From 1999-2015 Paul held several senior management 
positions at Volvo Cars. He holds a degree in Sc. Industrial 
Engineering & Management from Chalmers University of 
Technology in Gothenburg, Sweden.

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Marcel Gestranius

North East FD and  
CFO of Nordkalk

Marcel joined Nordkalk in January 
1998 and has over 20 years of 
experience in various leadership 

positions. Marcel began as an ICT coordinator and has held 
the position of division controller, financial director, group 
controller, acting initially as CEO and currently CFO. Marcel 
holds a master’s degree in Information Processing.

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STRATEGIC REPORT
Quicklime

STRATEGIC REPORT
Nordics

Nordkalk created a dedicated quicklime 
platform to provide an industrial focus 
on quicklime production and customers. 
The new Quicklime platform will manage 
the energy transformation from fossil to 
renewable fuels and upgrade its kiln network 
to meet sustainability requirements. The 
platform consists of Nordkalk’s own kilns in 
Finland, Sweden and Estonia, kilns operated 
by JV companies in Sweden and Norway, 
and customer owned kilns in Finland and 
Germany that are operated by Nordkalk.

Platform Highlights 

 –   Strong sales buoyed by increased market share in  

pulp & paper and decreased import from Russia and 
Belarus due to trade bans which particularly benefited 
sales to Estonia.

 –   Biofuel projects proceeded according to plan.

 –   Co-operation agreement signed with Norwegian carbon 

capture technology provider Aqualung.

 –   Clear benefits from industrial reorganisation focusing 
on improving operations and preparing for growing 
sustainability requirements.

 –   Focus on residual streams and material efficiency. Several 

new products launched during the year.

Platform Metrics 

Key operational metrics for the Quicklime Platform during the year were as follows:

People

Kilns

Sites

2022

128

10

13

2021

126

11

13

Change

+2%

-9%

-

During the year the Quicklime Platform recruited a new sales director, and one rotary kiln in Finland, which was primarily used 
as back-up productive capacity, was mothballed.

Nordkalk’s newly formed Nordics platform consists of limestone, carbonate and specialty 
products businesses in Finland and Sweden. The goal of the reorganisation was to capitalise 
on market opportunities and develop the Nordic business further. The main sites include 
limestone quarries and grinding operations in Pargas and Lappeenranta in Finland and on the 
island of Gotland in Sweden.

Platform Highlights 

 –   Strong demand from construction industry, particularly for 
soil stabilisation, agriculture, and pulp & paper after the 
UPM strike ended in Q2.

 –   Maintained profitability in inflationary environment through 
dynamic pricing and active management of cost base, 
including changes to production schedule and work shifts 
to take advantage of cheaper electricity prices in evenings 
and weekends.

 –   Commenced Lappeenranta overburden removal project to 
expand the quarry and gain access to additional reserves.

 –   Ongoing R&D development, including circular wollastonite 

in Lappeenranta, quicklime free soil stabilisation and 
circular products for agriculture.

 –   Investments to enable increased sales to Cementa on 

Gotland in Sweden and secure Swedish cement supply.

Platform Metrics 

Key operational metrics for the Nordics Platform during the 
year were as follows:

2022

308

2021

Change

298

+3%

779.5m

595.5m

+31%

People

 Reserves and 
Resources 
(tonnes)

Sites

16

15

+7%

Primary driver of the increases during the year for the Nordics 
Platform was the acquisition of La Belonga in Spain.

Mikael Furu

MD of 
Quicklime

Mikael has 
been working 
at Nordkalk 
in different 

managerial positions since 2009. In 
October 2022, he was appointed as MD 
for Nordkalk’s new Quicklime platform. 
Before that he held the position of EVP 
responsible for Nordkalk’s Northern 
Europe region. Prior to joining Nordkalk, 
Mikael worked at sales in Metso Paper. 
He holds a degree in Master of Science 
in Engineering, Process Technology from 
Åbo Akademi University in Turku, Finland.

Anssi 
Koikkalainen

MD of Nordics

Anssi Koikkalainen 
has been working  
at Nordkalk for 
almost 20 years 

in several sales, purchasing and business 
development roles. In his current role as MD 
of Nordics, Anssi is responsible for Nordkalk’s 
limestone, carbonate and specialty products 
businesses in the Nordic countries. Anssi’s 
responsibility area includes various mining 
and production operations in the region; 
sales and marketing, business development 
and R&D. Anssi holds a master’s degree in 
industrial engineering & management from 
LUT, Lappeenranta University of Technology 
in Lappeenranta, Finland.

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STRATEGIC REPORT
Poland

Nordkalk’s Poland platform consists of 
Nordkalk’s limestone and carbonate 
operations in Poland and comprises 
quarries and grinding operations across 
four locations including Miedzianka, in 
the middle of Poland, which is Nordkalk’s 
largest quarry. The Poland platform also 
includes relatively small operations in Turkey 
and prospective mineral permits in Ukraine.

Platform Highlights 

 –   Opening of the Ostrówka deposit adjacent to Miedzianka 
quarry, with the first fully permitted phase covering 8.5 
million tonne of limestone, with the aggregate potential 
estimated at 34 million tonnes.

 –  Strong sales in construction, chemical and energy 

segments.

 –  Successful pricing strategy to mitigate higher energy and 

other input costs.

 –  First solar panel installations in Miedzianka and Wolica.

Platform Metrics 

Key operational metrics for the Poland Platform during the year were as follows:

People

Reserves and Resources (tonnes)

Sites

2022

254

314.8m

5

2021

253

318.2m

5

Change

-

-1%

-

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Piotr Maciak 

MD of Poland

Piotr Maciak has been working for Nordkalk since 2009 in sales and business managerial 
positions. Before joining Nordkalk, he held several commercial managerial positions, mainly in 
industrial companies in Poland. In his current position, Piotr has full responsibility for Nordkalk’s 
business operations in Poland. He holds a master’s degree in Power Engineering from Warsaw 
Technological University in Warsaw, Poland.

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STRATEGIC REPORT
Baltics

Nordkalk’s Baltics platform consists of the 
newly established Baltic Aggregates business 
and is focused on developing Nordkalk’s 
limestone and dolomite operations in the Baltic 
countries, including exports from Finland. 
Nordkalk has three active quarrying sites in 
Estonia and a grinding plant next to the Rakke 
lime kiln.

Platform Highlights 

 –   Baltic Aggregates established to manage aggregates sales 

from Pargas, Finland into the growing Baltic market.

 –   Preparation for major construction projects such as Rail 

Baltic.

 –   Identification of synergies in shipping between limestone and 

aggregates in the Baltic market.

Platform Metrics 

Key operational metrics for the Baltics Platform during the year 
were as follows:

2021

Change

2022

62

64

47.7m

48.4m

-3%

-2%

People

Reserves and 
Resources 
(tonnes)

Sites

3

4

-25%

During the year the sales office in Russia was closed, leading 
to a slight reduction in the number of sites and people.  

Gediminas Skvernys 

MD of Baltics

Gediminas Skvernys started as MD of Nordkalk’s Baltics platform 
and Baltic Aggregates in 2022. Prior to joining Nordkalk, he 
worked as CEO of Dolomitas, a company specialising in dolomite 
construction aggregates in Lithuania and granite importation from 
Scandinavia. Gediminas holds a business & commercial master’s 
degree from Kaunas University of Technology in Kaunas, Lithuania.

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Financial
review

STRATEGIC REPORT
Macro conditions in the market

Over the next two pages, we give you a perspective on some of the macro conditions in the jurisdiction the Group
operates in. The last half of 2021 has generated unprecendented moves in all key statistics; moves are increases that have 
worsened since. While energy prices have eased in the first half of 2023, the Group remains extremely focused on managing 
these cost increases through contractual mechanism, hedging strategies and dynamic pricing.

GDP GROWTH
GDP growth rate per semester per country (%)

CPI INFLATION

CPI inflation rate per semester per country (%)

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H2 2022

-0.50%

H1 2022

H2 2021

 FINLAND

H2 2022

-0.72%

H1 2022

H2 2021

 POLAND

H2 2022

-1.46%

H1 2022

H2 2021

 ESTONIA

H2 2022

-2.91%

H1 2022

-1.55%

0.84%

1.86%

1.82%

3.76%

H2 2021

1.01%

 UK

H2 2022

-0.15%

 BELGIUM 

H1 2022

H2 2021

H2 2022

H1 2022

H2 2021

0.56%

3.28%

0.32%

1.11%

2.91%

1.84%

H2 2022

H1 2022

10.64

6.04

6.37%

H2 2021

2.65

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H1 2022

H2 2021

H2 2022

H1 2022

H2 2021

H2 2022

H1 2022

H2 2021

H2 2022

H1 2022

H2 2021

H2 2022

H1 2022

H2 2021

8.35

5.87

2.82

16.95

11.79

22.12

16.54

6.52

7.44

9.08

6.72

3.54

3.89

10.68

8.48

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Source: Trading Economics

Source: Global Rates

 
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STRATEGIC REPORT
Macro conditions in the market

COAL
(EUR/T)

NATURAL GAS
EU Dutch TTF 
(EUR/MWh)

400

300

200

100

300

250

200

150

100

50

0

BRENT CRUDE OIL
(EUR/barrel)

ELECTRICITY
(APX, euros per 
megawatt hour)

100

50

0

600

400

200

0

BIGGEST SOURCES OF ELECTRICITY BY COUNTRY

  Nuclear

  Gas

  Coal

  Wind

  Hydro

H2 2021

H1 2022

H2 2022

H1 2023

H2 2021

H1 2022

H2 2022

H1 2023

H2 2021

H1 2022

H2 2022

H1 2023

392.62

105.95

339.20

32.771

115.89

56.90

764.17

3.93

EU ELECTRICITY GENERATION BY SOURCE

H2 2021

H1 2022

H2 2022

H1 2023

Sources: Market Insider, Trading Economics, Financial Times

Nuclear

25%

Gas

20%

Coal

14%

Hydro

13%

Wind

13%

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Other 
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STRATEGIC REPORT
FY22 net debt

STRATEGIC REPORT
CapEx in 2022

Leverage 

1.93x

1.77x

£19M

-£10M

£41M

87%
D&A

£26M

£6M

£7M

£102M

-£11M

-£41M

-£58M

-£9M

£17M

-£177M

Maintenance CapEx
Maintenance CapEx

Resource extensions
Resource extensions

Growth CapEx
Growth CapEx

Divestments
Divestments

Net CapEx
Net CapEx

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-£164M

t
b
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n

i

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U

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W

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-£19M

-£194M

r
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O

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GROWTH CAPEX

Land purchases

Plant capacity increases

Internalise haulage

Alt-fuel conversions

£1M

£2M

DIVESTMENTS

Non-core land sales

Plant

Vehicles

£4M

£12M

£5M

£3M

£2M

Strong cash generation supporting 3 strategic acquisitions while maintaining leverage <2x.

Significant reinvestment to secure future earnings and grow the Group

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79

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
STRATEGIC REPORT
Focus on value creation with path  to 15% ROIC

STRATEGIC REPORT
Key measures and statistics

ILLUSTRATIVE NET DEBT EVOLUTION ABSENT  
RE-INVESTMENT

ILLUSTRATIVE ROIC

   FINANCIALS

YoY REVENUE GROWTH
(million GBP)

YoY EBITDA GROWTH
(million GBP)

2022

2021

£538 m

+98%

2022

£102 m

+106%

£272 m

+119%

2021

£49 m

+40%

2018

£41 m

2018

£10 m

2020

£124 m

+77%

2020

£24 m

2019

£70 m

+71%

2019

£15 m

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+104%

+64%

+48%

 100

 50

50)

100)

150)

200)

250)

(180)

 25.0

 20.0

 15.0

 10.0

 5.0

 -

2022

2023

2024

2025

2026

2027

2021

2022

2023

2024

2025

2026

2027

2028

NET MARGIN

21.8%

CASH CONVERSION RATIO

FREE CASH FLOW

87%

£54.3M

Returns well on track with 3-5 year targets.

YoY UNDERLYING NET MARGIN1
(%)

YoY UNDERLYING EPS
(pence)

2022

2021

2020

2019

2018

22%

+7%

2022

8.0 p

+49%

20%

+6%

2021

5.4 p

19%

-7%

2020

21%

-13%

2019

4.5 p

4.2 p

24%

2018

3.8 p

+19%

+7%

+10%

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YoY LEVERAGE RATIO2
(ratio)

2022

2021

2020

2019

2018

1.78 
1.77

1.70 

1.69 

+3%

+11%

-18%

2.07 

+27%

1.63 

1 EBITDA margin adjusted for impact of inflationary cost pass-throughs
2 Excludes IFRS16 related lease adjustments

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81

 
YoY CONCRETE AND CONCRETE PRODUCTS
(cubic metres)

YoY RESERVES AND RESOURCES
(million tonnes)

YoY TOTAL ASSETS
(million GBP)

  ASSETS

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STRATEGIC REPORT
Key measures and statistics

   VOLUMES

YoY AGGREGATES
(thousand tonnes)

2022

2021

14,908 

+137%

2022

640,100 

+1%

6,350 

+158%

2021

630,700 

+49%

2020

3,111 

+120%

2020

422,084 

2019

1,783 

+102%

2018

239 

2019

2018

349,921 

260,525 

+21%

+34%

2022

2021

2020

1,599.6 m

+20%

1,335.1 m

+263%

374.5 m

-1%

2022

2021

2020

257 m

2019

378.5 m

+2781%

2019

208 m

906 m

+18%

769 m

+199%

+24%

+147%

2018

13.3 m

2018

84 m

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YoY ASPHALT AND ASPHALT LAID
(tonnes)

YoY DIMENSION STONE
(tonnes)

YoY TANGIBLE ASSETS
(million GBP)

YoY NUMBER OF SITES

2022

2021

2020

2019

247,100 

-4%

256,800 

+12%

229,396 

-2%

2022

2021

2020

99630

+6%

94232

+13%

83279

+8486%

2022

2021

2020

749 m

+67%

450 m

+117%

2022

2021

207 m

+69%

2020

234,107 

+313%

2019

970

+547%

2019

122 m

+88%

2019

84 

+11%

76 

+145%

+3%

+200%

31 

30 

2018

56,700 

2018

150

2018

65 m

2018

10 

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YoY QUICKLIME
(tonnes)

YoY HIGH-GRADE LIMESTONE
(million tonnes)

YoY PEOPLE

274,984 

2022

2021

2020

2019

2018

721,800 

+162%

2022

2.491m

+190%

0.859m

2021

2020

2019

2018

2022

2021

2020

2019

2,009 

+8%

1,865 

942 

717 

+98%

+31%

+180%

2018

256 

82

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83

 
Chief Financial
Officer’s report

STRATEGIC REPORT

Chief Financial Officer’s report 

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Garth  
Palmer

CHIEF FINANCIAL  
OFFICER

I am pleased to report another strong year financially for 
the Group, where we exceeded expectations despite 
considerable challenges in the operational and market 
backdrop. We were able to more than offset these 
headwinds through a combination of volume outperformance 
in the less impacted parts of the Group, dynamic pricing, 
effective hedging, and numerous operational improvement 
programmes and cost saving initiatives.

For the year ending 31 December 2022, the Group 
generated revenue of £538.0 million (2021: £272.0 million) 
and Underlying EBITDA of £101.7 million (2021: £49.3 
million). Underlying profit before taxation for the Group was 
£62.7 million (2021: £26.8 million).

The statutory loss for the Company for the year ended 31 
December 2022 before taxation amounts to £24.4 million 
(2021: loss £26.3 million), which includes £10.2 million of 
non-underlying expenses primarily pertaining to non-cash 
share option expense, amortisation of finance costs, and 
M&A related cash fees.

The Board monitors the activities and performance of the 
Group on a regular basis and uses financial indicators based 
on budget versus actual to assess the performance of the 
Group. The indicators set out below will continue to be used 
by the Board to assess performance over the period to 31 
December 2022.

Cash and cash equivalents

Revenue

Underlying EBITDA

Capital expenditure

2022 
£’000

68,623

537,993

101,723

51,008

2021 
£’000

69,916

271,986

49,262

22,555

Cash generated from operations was £87.7 million (2021: 
£29.5 million) with a net decrease in cash of £4 million 
(2021 net increase of £42.9 million) after spending £43.3 
million on acquisitions net of cash acquired and £40.8 
million in net capital expenditure.

Revenue and Underlying EBITDA exceeded expectations 
and management forecasts.

Capital expenditure relates to purchases of land & minerals, 
new plant & machinery, and improvements to existing 
infrastructure across the Group.

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 – A maximum adjusted leverage ratio, which is the ratio 
of total net debt, including further borrowings such as 
deferred consideration, to adjusted EBITDA, of 3.25x in 
2022. As at 31 December 2022, the Group comfortably 
complied with its bank facility covenants.

Capital Allocations

We prioritise the maintenance of a strong balance sheet 
and deploy our capital responsibly, allowing us to commit 
significant organic investment to our business whilst 
continuing to pursue acquisitions to accelerate our strategic 
development. This conservative approach to financial 
management will enable us to continue pursuing capital 
growth for our shareholders. 

Dividends

Subject to availability of distributable reserves, dividends 
will be paid to shareholders when the Directors believe it is 
appropriate and prudent to do so. The focus of the Group 

at this stage of its development will be on delivering capital 
growth for shareholders. The Directors therefore do not 
recommend the payment of a dividend for the year (31 
December 2021: nil).

Post Balance Sheet event

Post 2022 close we have conducted a series of activities 
worthy of mention in this Annual Report. Further information 
is set out in Note 38.

This report was approved by the Board on 25 March 2023 
and signed on its behalf.

Garth Palmer 
Chief Financial Officer
25 March 2023 

STRATEGIC REPORT

Chief Financial Officer’s report 

PPA

Interest and tax

BDO UK LLP undertook the PPA exercise required under 
IFRS 3 to allocate a fair value to the acquired assets of 
B-Mix and Nordkalk.

The PPA process resulted in a reduction of goodwill recorded 
on the Statement of Financial Position of the Group for 
Nordkalk from £268.8 million to £35 million. The reduction 
was to transfer the value of goodwill to tangible assets for 
plant and equipment, land and buildings, land and mineral 
reserves, intangible assets and deferred tax assets.

Net finance costs in the year totalled £10.4 million (2021: 
£7.0 million) including associated interest on bank finance 
facilities, as well as interest on finance leases (including 
IFRS 16 adjustments) and hire purchase agreements.

A tax charge of £9.1 million (2021: £4.7 million) was 
recognised in the year, resulting in a tax charge on 
profitability generated from mineral extraction in the Channel 
Islands and profits generated through the Group’s UK, 
Belgium and Nordic based operations.

Non-underlying items

Earnings per share

The Company’s loss after taxation for 2022 amounts 
to £24.4 million, of which £10.2 million relates to non-
underlying items, while the Group’s non-underlying 
items totalled £20.0 million for the year, of which £13.1 
million, representing over 65%, are non-cash and non-tax 
deductible. These items relate to nine categories:

1.   £6.7 million amortisation of acquired assets and 

adjustments to acquired assets, which has increased by 
£5.0 million resulting from the Nordkalk PPA adjustment.

2.   £4.7 million in share-based payments relating to grants 
of options, including £0.5 million pertaining to option 
revaluations resulting from changes to exercise dates.

3.   £3.5 million in exclusivity, introducer, advisor, 

consulting, legal fees, accounting fees, insurance 
and other direct costs relating to acquisitions. During 
the year the Group acquired Johnston, RightCast, 
La Belonga and entered into the ArcelorMittal joint 
venture. The Group also undertook extensive due 
diligence on over 20 other potential transactions, 
some of which were completed, and others which are 
expected to complete, post year-end.

4.   £1.8 million legal and restructuring expenses relating 
to the reorganisation and integration of recently 
acquired subsidiaries, including costs associated with 
discontinuing sites and operations, transitional salary 
costs, redundancies, severance and recruitment fees, 
and costs associated with financial reporting and 
system migrations.

5.   £1.1 million on amortisation of finance costs arising 

from the syndicated 5-year debt facilities established in 
July 2021.

6.   £0.9 million in stamp duty and other taxes, primarily 

relating to taxes paid in relation to the acquisition of 11 
hectares of land in Belgium.

7.   £0.5 million on expenses relating to innovation 
and sustainable practices, including continued 
development of Greenbloc, alternative carbon-free 
cement solutions, Aqualung carbon capture technology 
and utilisation of alternative fuels.

8.   £0.4 million on unwinding of discounts on deferred 

consideration payments for Harries.

9.   £0.4 million in other exceptional costs which primarily 

relate to non-cash balance sheet adjustments.

Basic EPS for the year was 4.89 pence (2021: loss of 1.89 
pence) and Underlying basic EPS (adjusted for the non-
underlying items mentioned above) for the year totalled 8.03 
pence (2021: 5.37 pence).

Statement of financial position
Net assets at 31 December 2022 were £469.9 million 
(2021: £411.2 million). Net assets are underpinned by 
mineral resources, land and buildings and plant and 
machinery assets of the Group.

Cash flow
Cash generated by operations was £87.7 million 
(2021: £29.5 million). The Group spent £43.3 million on 
acquisitions net of cash acquired, £51.0 million on capital 
projects, raised £9.2 million through the disposal of surplus 
land holdings, and drew net borrowings of £5.8 million. The 
net result was a cash outflow for the year of £4 million.

Net debt

Net debt at 31 December 2022 was £193.8 million (2021: 
£164.0 million), and was refinanced on 15 July 2021.

Bank facilities

In July 2021 the Company entered a new Syndicated Senior 
Credit Facility of up to £405 million (the ‘Debt Facilities’) 
led by Santander UK and including several major UK and 
European banks. The Debt Facilities, which comprises a 
£205 million committed term facility, £100 million revolving 
credit facility and a further £100 million accordion option, 
provides the Group with further capacity and flexibility to 
support its ongoing buy-and-build strategy, as well as 
reducing like-for-like borrowing costs. 

The Group’s Debt Facilities have a maturity date of 15 July 
2026 and are subject to a variable interest rate based on 
SONIA/EURIBOR plus a margin depending on Underlying 
EBITDA. As at 31 December 2022, total undrawn facilities 
available to the Group via the new Debt Facilities amounted 
to approximately £173 million.

The Group’s Debt Facilities are subject to covenants 
which are tested monthly and certified quarterly. These 
covenants are:

 – Group interest cover ratio set at a minimum of 4 times 

EBITDA; and 

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Chief Technical  
Officer’s risk report

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STRATEGIC REPORT

Chief Technical Officer’s risk report
At a high level the Group’s risk appetite is reviewed annually 
by the Board which defines and approves the level of risk the 
Group is willing to accept in pursuit of its strategy, thereby 
guiding management. 

Audit Committee 

Our on-going identification and assessment of risks including 
ESG and climate-related risks allows both the Board and 
management to consult and adapt to ensure efficient and 
effective mitigation. 

The risk management process has been proven to work 
effectively with COVID as well as with the Russian invasion 
and associated energy crisis whereby the level of risk is 
identified and assessed both at a platform level and at a 
Group level.

Directors and Senior Management teams continually 
identify and assess risks and opportunities for each of their 
respective businesses and areas. This ensures each platform 
can focus on what is important to their jurisdictions, thereby 
capturing nuances so they are not lost in a global overview, 
such as variances in reliance on Russian gas by country. 

Risks are then reported and discussed with the CTO, and 
subsequently assimilated and reviewed at monthly Group 
management meetings, or even weekly risk meetings where 
appropriate, where local risks and overarching Group risks 
can continue to be identified and assessed. The CTO also 
coordinates with key subject matter experts on Investor 
Relations, Legal, Safety, Carbon & Energy, Environment,  
and Systems.  

For example, an energy and power risk meeting was held 
weekly that supported our businesses to implement fast 
energy improvement programs thereby minimising the 
impact of the recent energy situation. This included changing 
production to low tariff hours including running plants solely 
at night by transferring day shifts to night shifts through 
coordination with unions essentially overnight.

Risks identified are assessed based on aspects such as 
consequence, impact, likelihood, inter dependencies, and 
associated timeframes (short-, medium-, and long-term 
time horizons) as well as their drivers such as Political, 
Operational, Economic, and Technical.

When assessing the potential size and scope of risks and 
opportunities input from industry governing bodies (who are 
in regular contact with government and associated agencies) 
as well inputs from our large shareholders and other 
stakeholders are used in addition to our usual assessment 
and prioritisation techniques. These include analysis of 
probability and impact, risk frequency, and risk urgency. 
Where necessary these are then modelled with scenario and 
sensitivity parameters to help assess both size and scope.

Board 

The Board is responsible for the risk management and 
internal control and for reviewing effectiveness, with specific 
oversight of Code of Conduct, ESG risks and climate-related 
matters. These have a dedicated agenda item at Board 
meetings with the Board meeting at least four times per year. 
The Executive Board members also ensure these topics 
have a dedicated agenda item at the monthly management 
meetings. The Executive members are charged with overall 
delivery whilst the Non-Executives challenge and give 
oversight and governance.

The Audit Committee ensures independent oversight of the 
Board which considers risks and opportunities when setting 
and reviewing strategy, major plans of action, policies, annual 
budgets, and business plans. It further considers matters 
when setting performance objectives, monitoring Group 
performance, and reviewing and approving major projects, 
capital expenditures and acquisitions.

Risk Representative

To ensure the Board can monitor and oversee progress 
against goals and targets, Charles Trigg (CTO) continues 
to lead risk at a Group level. He works with each platform 
with regards to ongoing identification of risks, opportunities 
and potential impacts on the business as well as reviewing 
performance metrics and targets and ensuring overall 
continual improvement. Charles then liaises with the 
Board and any relevant committees so that the Board is 
continually updated with regards to climate-related risks and 
opportunities as well as overall ESG matters.

Senior Management Team 

The Group is set up as discrete operational platforms 
with each platform having its own management team. As 
such each platform Director is responsible for assessing 
and managing risks and opportunities for their respective 
platform. Managing Directors and the Company’s executive 
management team meet monthly to ensure that Group 
objectives are met as well as ensuring local risks and 
opportunities are recognised and managed.

Charles Trigg, Chief Technical Officer

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STRATEGIC REPORT

Chief Technical Officer’s risk report 

Risk

Description

Mitigation

Risk

Description

Mitigation

Competition 
and Margins

Economic 
and political 

Energy  
and Power

Environment 
and Climate 
Change 

Increase in costs or prices; reliance 
on key suppliers and key customers, 
including national merchants, could 
impact supply and profitability. 
A number of existing competitors 
compete on range, price, quality 
and service. Potential new low-cost 
competitors may be attracted into the 
market through increased demand.

The Group is dependent on the level of 
activity in its end markets. Accordingly, 
it is susceptible to economic downturn, 
the impact of Government policy, 
interest rates and any political and 
economic uncertainty, such as 
COVID-19. 

Difficult economic conditions could also 
increase our exposure to credit risk 
from our customers.

Though captured under Raw Materials 
sourcing and internal resources, given 
the current climate, this has been 
separated out.

The Group is susceptible to significant 
increases in the price of energy and 
power, utilities, fuel oil, associated 
haulage costs and decreases in 
availability.

 Risks exist around our ability to pass 
on increased costs through price 
increases to our customers. 

Operational impact on the environment 
or the effects of climate change 
could expose the Group to regulatory 
breaches, significant disruption, 
reputational risk or a reduction in 
demand for our products. 

Operate a strategic purchasing plan to minimise key supplier risks, 
notably in cement and bitumen.

Seek to offset rising commodity prices through our product pricing 
strategy and hedging programmes. 

Maintain a diverse customer and project base which focuses on quality, 
service, reliability and continuing focus on new product development. 

Operate a decentralised model matching focus of independents and 
new entrants.

The Group has a strong focus on operational gearing, allowing it to be 
flexible during economically disruptive events.
The Group has a diverse product portfolio across multiple end markets 
and jurisdictions.

The Group’s relationship with suppliers and customers allows for 
management of risk including credit risk and where necessary credit risk 
insurance is sourced. 

Energy and Power plans developed at all sites to ensure optimal energy 
and power use. 

The Group focuses on its multiple supplier and customer relationships, 
contracts and the use of hedging instruments. 

Ensure businesses have ability to manage stock and inventory to 
minimise disruption from energy and power. 

Committed to reducing level of carbon emissions, reuse and recycling 
schemes and implementation of sustainability initiatives. 

Under SECR the Group has committed to monitoring all its operations, 
not just the UK, through an independent external organisation. 

Management, training, and control systems are in place to prevent 
environmental incidents. 

Promotion of EMS and ISO14001 accreditation and approximately 75% 
of our businesses are accredited1. 

Foreign exchange risk: The Group undertakes limited foreign 
exchange transactions as it sells domestically or in domestic currency 
with largely local input costs. Some M&A, OpEx and CapEx requires 
foreign exchange purchases and management considers foreign 
exchange hedging strategies where significant exposures may arise. 
Credit risk: Customer credit risk is managed by each subsidiary. The 
Group principally manages credit risk through management of customer 
credit limits. The credit limits are set for each customer based on the 
creditworthiness of the customer and the anticipated levels of business 
activity. These limits are initially determined when the customer account 
is first set up and are regularly monitored thereafter. 
Liquidity risk: Ensure sufficient funding and facilities in place to 
meet any foreseeable peak in borrowing requirements and liabilities 
by maintaining strong relationships with our banks and shareholders. 
Internally, we continuously monitor forecasts and cash flows to ensure 
that we maintain significant headroom and have self-imposed 2 times 
leverage, which is only exceeded temporarily and worked down as 
quickly as possible. 
Interest rate risk: The Group finances its operations through a mixture 
of retained profits and bank borrowings, based on floating rates. Interest 
rate fixing has been reviewed but none have been entered into during 
the year or at the year end.

We safeguard the health and safety of employees, contractors and 
others working on behalf of the Group, with experienced health and 
safety professionals who provide relevant training and help develop 
a strong culture alongside the management teams; all of which is 
overseen and audited by our Group HSEQ director and the support of 
consultants where necessary. 

We are constantly improving communication and reporting across the 
Group through simple and effective systems and processes such as our 
HS Engagement and Monitoring software, Visible Felt Leadership, HS 
Committees, back to work and pitstops. 

IT support teams and service providers continue to monitor and 
respond to new and expanding cyber risks by implementing best 
practice in IT security management, back-up systems and risk 
management software courtesy of our cyber insurance providers.

Outdated software and hardware are updated and cloud solutions 
embraced to minimise negative impacts and allow continual operations.

Group general counsel and engagement of external specialists to 
monitor legislative changes and conduct ongoing training. 

Hold appropriate business accreditations and insurances and ensure 
there are compliance procedures, policies, ISO standards and 
independent audit processes which seek to ensure that regulatory and 
compliance procedures are fully complied with.

Finance, 
Liquidity and 
Currency 

Foreign exchange risk: As the Group 
transacts in currencies other than 
Sterling, exchange rate fluctuations may 
adversely impact the Group’s results. 
Credit risk: Through its customers, 
the Group is exposed to a counterparty 
risk that accounts receivable will not be 
settled leading to a financial loss to the 
Group. 
Liquidity risk: Insufficient funds could 
result in the Group being unable to fund 
its operations or to continue to invest 
organically or to undertake acquisitions. 
Interest rate risk: Movements in 
interest rates could adversely impact 
the Group and result in higher financing 
payments to service debt.

Health and 
Safety 

Failure to manage health and safety 
risks could cause harm to our 
employees or those around us and 
expose the Group to significant 
potential disruption, regulatory 
breaches, liabilities and reputational 
damage. 

IT and Cyber  Disruption to the IT environment could 
affect our operational performance and 
lead to reputational damage, regulatory 
penalties or significant financial loss. 
Failure to keep up to date with 
advances in technology could impact 
demand and our ability to access the 
market.

Legal and 
Regulatory 

Exposure to developments that lead to 
political, legal and regulatory changes 
requiring significant changes to Group 
operations which could impact the 
Group’s financial results, together with 
any associated negative reputational 
damage. 

Inadvertent failure to comply with 
elements of a significantly increased 
governance, legislative and regulatory 
business environment. 

A legal or regulatory breach could result 
in disruption to operations, financial 
consequence and reputational damage.

1 Based on Group Revenue, not number of businesses

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STRATEGIC REPORT

Chief Technical Officer’s risk report 

Risk

M&A 

Description

Mitigation

Overpay; fail to integrate; fail to deliver 
the expected returns from  
an acquisition. 

Failure to identify potential acquisitions 
to sustain our growth strategy or not be 
an acquirer of choice.

Strong acquisition track record supported by our specialist advisers and 
rigorous due diligence processes. 

All acquisitions are approved by the Board and all acquisitions are 
subject to detailed due diligence processes which are executed by 
project teams, with progress monitored by the Board. 

We have developed a management structure which facilitates our 
growth strategy and, where appropriate, we make arrangements to 
retain acquired senior management and minimise negative change upon 
acquiring businesses. 

The Board uses its networks and reputation to review wider acquisition 
opportunities and our businesses are all tasked with bringing forward 
potential acquisition targets for review at Group level.

Operational 
disruption 
and key 
equipment 
failure 

A material disruption at one of the 
Group’s operational sites or at one 
of the Group’s suppliers’ facilities, 
could prevent the Group from meeting 
customer demand. 

The Group has the ability to transfer some of its production across its 
network of plants and is able to engage subcontractors to reduce the 
impact of certain production disruptions. In relation to supplier disruption 
or failure, further third-party suppliers have been identified who can 
maintain service in the event of a disruption.

Quality

Raw 
Materials 
sourcing 
and internal 
resources 

The nature of the Group’s business may 
expose it to warranty claims and to 
claims for product liability, construction 
defects, project delay, property 
damage, personal injury and other 
damages. Any damage to the Group’s 
brands, including through actual or 
alleged issues with its products, could 
harm our business, reputation and the 
Group’s financial results.

The Group is susceptible to significant 
increases in the price of raw materials, 
utilities, fuel oil and haulage costs and 
decreases in availability.

Risks exist around our ability to pass on 
increased costs through price increases 
to our customers.

The Group’s wide geographical spread mitigates this risk to some extent 
and allows it to manage its production facilities to mitigate the impact of 
such disruption. 

The Group operates comprehensive quality control procedures across 
its sites with both internal and external audit reviews of product quality 
completed to ensure conformance with internationally recognised 
standards. All accredited staff undergo rigorous training programmes 
on quality and the technical teams carry out regular testing of all of our 
products to provide full technical data on our product range.

Resource expansion plans developed at all sites to ensure timely access 
to future materials.

The Group focuses on its multiple supplier relationships, flexible 
contracts and the use of hedging instruments. 

Ensure businesses are self-sufficient with ability to increase resources 
through subcontractors during peak demands.

Recruitment 
and retention 

Failure to recruit, develop and retain the 
right people. 

The Board, Nomination Committee, and senior management teams 
conduct reviews and plan succession for key roles.

Failing to create a corporate culture 
that is based upon ethical values and 
behaviours.

The Board and the Remuneration Committee review all key aspects of 
remuneration to ensure appropriate packages are in place to assist in 
the attraction and retention of key employees. 

Each business has a grading and employee benefit structure with 
review of incentive plans underway to give help and support long term 
employee commitment. 

A focus on identifying internal talent and recruitment of upcoming talent 
is under review to ensure succession planning and maintain a dynamic 
talent pool which is supported with development plans.

Digital and product development groups that work local and cross 
business reviewing both our industry and external offerings and 
opportunities.

Technology 
and New 
Business 
Models 

Reduction in demand for traditional 
products.

Risk of new competitors and new 
substitute products appearing. 

Failure to react to market 
developments, including digital and 
technological advances.

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CIO systems  
& digital  
innovation report 

STRATEGIC REPORT
CIO systems & digital innovation report 

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Fons  
Vermorken

CHIEF INFORMATION 
OFFICER

I am pleased to report that the Group has closed a solid 
year without any significant IT incidents, while successfully 
implementing new ERP systems across the UK, 
commencing implementation of a new ERP system in the 
North East, and constantly looking to improve and innovate 
its operations wherever possible. Despite the challenging 
economic environment, we managed to work through a 
significant pipeline of projects, allowing the Group to stay 
at the forefront from a systems and digital perspective. The 
two main points of focus are innovating the Group and its 
internal processes as well as making sure cyber and risk 
management standards are at the highest level. 

Cyber risk management

Cyber security and potential breaches of SigmaRoc IT 
systems can have a serious and disruptive impact on 
the Group. Failure to appropriately manage cyber risk 
could affect the financial performance of the Group, put 
employees at risk, result in disclosure of confidential 
information, damage our brands and reputation, and create 
legal exposure.

Impact on the Group

The prevalence of cyber threats facing businesses has 
markedly escalated in recent times, partially attributed to 
the emergence of novel digital tools such as ransomware, 
growing involvement of nation-states, heightened 
interconnectivity, and a substantial rise in the profitability of 
cyber offenses.

SigmaRoc’s operational processes, encompassing 
industrial production, efficient operations, environmental 
management, health and safety, communications, 
transaction processing, and risk management, are reliant on 
digital capabilities. Additionally, the Group’s extended supply 
chains are also vulnerable to cyber threats, albeit largely 
beyond our direct control.

The Group closely monitors the security of these complex 
and intertwined supply chains to mitigate potential adverse 

impacts. The growing prevalence of machine learning and 
artificial intelligence also intensifies the sophistication and 
frequency of fraudulent activities. The advent of ‘Deepfake’ 
technology, which uses machine learning to manipulate 
audio and visual content, exacerbates the risk of phishing or 
fraud attacks that could impersonate senior executives.

Despite significant investments in the continuous 
improvement of its systems, processes, and networks, 
SigmaRoc acknowledges that achieving complete security is 
unattainable. However, it continues to work hard with the help 
of high quality third-party IT providers to improve IT safety 
and inform staff of tactical innovations utilised in cybercrime.

Our current developments

Due to the COVID pandemic, remote working has 
expanded the potential attack surface area, consequently 
elevating the risk of cyber assaults for all businesses. Also, 
the use of phone and tablet like devices has increased 
significantly in recent years as being part of the digital 
transformation of the Group. SigmaRoc has observed 
an increase in both the frequency and sophistication of 
cyberattacks directed towards its businesses.

The Group’s cybersecurity monitoring systems regularly 
identify endeavours to infiltrate the networks and systems. 
The increase was most noticeable post the announcement 
of the war in Ukraine. During 2022, there was an instance 
where one of our email servers experienced a substantial 
series of attacks, however, the protection systems in place 
were stringent enough for these attacks not to have resulted 
in any significant breach of our IT infrastructure or caused 
any notable business disruptions.

The outlook of the Group is that the frequency of 
cyberattacks, which entail the manipulation of legitimate 
third-party software to spread malware or gain unauthorized 
access to systems by impersonating senior management, 
will rise. Additionally, the Group predicts that ransomware will 
continue to pose a significant threat to firms in the industry 
that have become ever more informatised over recent years. 

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CIO systems & digital innovation report 

How we mitigate risk

Case Study: MachineMax

SigmaRoc disseminates IT security protocols and imparts 
education to the Group’s personnel in order to bolster 
awareness of cyber threats. Monthly cyber security trainings 
are rolled out to inform staff of the most recent developments 
in cyber-attacks and ransomware practices. To mitigate 
cyber risks, SigmaRoc has organised the IT infrastructure in 
the Group in a manner similar to its decentralised platform 
structure. The Group employs a layered cybersecurity setup, 
proactive monitoring, independent penetration testing, off 
network data backups and data backup restoration tests to 
validate system security wherever possible.

To safeguard critical systems, the Group implements privileged 
access management protocols. SigmaRoc endeavours to 
keep its system software up to date and maintains regional 
platforms to enforce patch compliance. The Group employs 
multiple email security layers and segregated email servers on 
different locations running different domains. Also, the Group 
hardens its computers and servers to counter malware. The 
corporate applications and communications employ multiple 
layers of security, including two-factor authentication and 
virtual private network (VPN) technology for remote access 
where required or recommended.

SigmaRoc does not deploy a global approach to IT security, 
but applies the same standards for the different platforms to 
proactively monitor and manage cyber risks and segregate 
the different servers. Segregating servers prevents spill-
over effects from an attack and mitigates the impact on the 
Group as a whole. SigmaRoc regularly engages third-party 
penetration testing to independently verify the security of our 
IT systems.

Digital transformation and innovation

SigmaRoc as a Group tries to be on the forefront of the 
digital transformation of the quarried material industry 
and lead the sector by adopting innovative solutions. 
Powerful hand held computer devices and the possibility to 
geolocate devices and equipment have allowed the Group 
to become increasingly more performant, cost efficient and 
environmentally friendly over of its existence. SigmaRoc is 
known for being the first mover and adopter of technologies 
that can change the industry and make significant steps 
towards the net zero world of the future.

MachineMax is a technology we engaged with several years 
ago and to date is well established in the Group. SigmaRoc 
was one of the first adopters of the technology, helped 
improve the product and benefitted from the technological 
advances the implementation of such a product brings to  
the Group.

Heavy equipment is one of the most utilised assets in the 
Group and the performance of the Group’s operations relies 
on it. MachineMax helped to optimise management of the 
heavy equipment, tracking key operational metrics and as a 
result increasing fleet productivity.

Adopting this universal telematics sensor has beneficially 
impacted machine utilisation, idling time, fuel consumption, 
emissions, location tracking and operating hours. This 
translated into improved top-line revenue and reduced 
operating costs, while simultaneously lowering emissions and 
the carbon footprint of the Group.

Case Study: HighVizZ

Keeping our colleagues safe and secure by operating in 
a safe work environment is the main priority of every site 
manager and the Group as a whole. In order to facilitate this, 
we developed our own tailored health & safety solution based 
on the input of our operation managers, who ultimately know 
what’s best for their people.

HighVizZ is a real-time health & safety system. Rather than 
just being a reporting tool, it puts emphasis on incident 
prevention and implementing a stringent safety culture. 
HighVizZ being available on the phone of each employee 
allows instant reporting, and importantly promotes discussion 
around safety that comes from within the operation, rather 
than being imposed by senior management. 

Changing the safety mindset of employees by empowering 
them to be responsible for their own, and their colleagues’, 
safety is the most effective way of improving health & safety 
standards across the Group.

Fons Vermorken 
Chief Information Officer 
25 March 2023

Risk management

Business value  
and reliability

Our management 
systems bring value  
in several ways

Employee  
and stakeholder  
engagement

Compliance assurance

Protection of people and the environment

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ESG
report

STRATEGIC REPORT
ESG report

SigmaRoc has and will always be committed to the principles of ESG. ESG encompasses a company’s Environmental, 
Social and Governance aspects, however there is no global definition with each company and sector potentially having 
different focus priorities.

Opportunities 
in renewable 
energy

Toxic 
emission & 
waste

Pollution & 
waste

Packaging 
material & waste

Electronic 
waste

Water
stress

Biodiversity & 
land use

Raw 
material

Natural 
resources

Carbon
emissions

Product carbon 
footprint

Climate 
change

Financing 
environmental 
impact

Climate change 
vulnerability

Board 
diversity

Executive
pay

Ownership

Opportunities in 
green building

Health 
& safety

Opportunities in 
clean tech

Labour 
management

Environment 
opportunity

Human 
capital

v i r o nmental

n

E

S ocial

Supply chain 
labour standards

Human capital 
development

Product safety & 
quality

Responsible 
investment

Chemical
safety

Financial 
product safety

Product 
liability

Privacy & data 
security

G o v e rnance

Stakeholder 
opposition

Controversial 
sourcing

Access to 
communication

Social 
opportunity

Access to 
finance

Access to health 
care

Opportunities 
in nutrition & 
health

Corporate 
governance

Corporate 
behaviour

Business 
ethics

Accounting

Corruption & 
instability

Financial system 
instability

Anti-competitive 
practices

Tax 
transparency

Following on from our 2021 annual report and standalone 
annual 2021 ESG Report, we continue to commit to reporting 
and disclosure of ESG and sustainability matters through 
frameworks such as TCFD and SASB. During 2022, we have 
extended our pledge by committing to Science Base Target 
Initiatives (SBTi).

TCFD & SASB

The Group’s ESG report has been guided using the principles 
of TCFD and SASB. Whilst TCFD recommendations serve as 
a global foundation for effective climate-related disclosures, in 

terms of disclosure, the Group has adopted, where possible, 
the SASB Construction Materials disclosure topics and 
accounting metrics.

SASB standards represent a clear solution to TCFD 
implementation having rigorously developed TCFD-aligned 
reporting tools to promote disclosures in a way that is both 
cost-effective and useful for all stakeholders.

As of August 2022, the International Sustainability Standards 
Board (ISSB) of the IFRS Foundation assumed responsibility 
for the SASB Standards. The ISSB has committed to build 

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STRATEGIC REPORT
ESG report 

on the industry-based SASB Standards and leverage SASB’s 
industry-based approach to standards development and 
encourages preparers and investors to continue to provide 
full support for and to use the SASB Standards until IFRS 
Sustainability Disclosure Standards replace SASB Standards. 

ISSB in 2022 published exposure drafts consolidating content 
from the TCFD, CDSB, SASB, Integrated Reporting, and WEF 
IBC’s stakeholder capitalism metrics into a coherent whole 
with the intention to become the global standard-setter for 
sustainability disclosures for the financial markets.

The TCFD standards set out recommended disclosures 
structured under four core elements of how companies 
operate:

 – Governance – The organisation’s governance around 

climate-related risks and opportunities; 

 – Strategy – The actual and potential impacts of climate-
related risks and opportunities for an organisation’s 
businesses, strategy, and financial planning; 

 – Risk Management – The processes used by the 

organisation to identify, assess, and manage climate-
related risks; and 

 – Metrics and Targets – The metrics and targets used  
to assess and manage relevant climate-related risks  
and opportunities 

SBTi

Science-based targets provide a clearly defined pathway 
for companies to reduce greenhouse gas (GHG) emissions, 
helping prevent the worst impacts of climate change and 
future-proof business growth. They show organisations how 
much and how quickly they need to reduce their greenhouse 
gas (GHG) emissions

Through the 2015 Paris Agreement, world governments 
committed to curbing global temperature rise to well-below 
2°C above pre-industrial levels and pursuing efforts to limit 
warming to 1.5°C. In 2018, the Intergovernmental Panel on 

Road Map to Net Zero

Climate Change warned that global warming must not exceed 
1.5°C to avoid the impacts of climate change. To achieve this, 
global GHG emissions must halve by 2030 – and drop to net-
zero by 2050.

Targets are considered ‘science-based’ if they are in line with 
what the latest climate science deems necessary to meet the 
goals of the Paris Agreement.

As we continue our commitment to net zero, SBTi is a 
global body enabling businesses to set ambitious emissions 
reductions targets in line with the latest  
climate science. 

There are 5 stages of SBTi:

1.   Commit Register online and submit a letter to commit to 
setting a science-based target, or to have existing targets 
independently verified.

2.   Develop a target: Develop target(s) in line with SBTi 

science-based criteria.

3.   Submit target for validation Review of targets by 

SBTi team of technical experts to validate it against our 
science-based criteria

4.   Announce target and inform stakeholders SBTi will 
publish targets on their Companies Taking Action Page. 

5.   Disclose progress: Disclose company’s emission 
annually and monitor progress on reaching target.

ESG Road Map and Focus Areas

As a business our overall aim is to ensure sustainable returns 
to our shareholders. As a Group we are committed to 
ensuring this can be done in a manner where we minimise 
risks and seize opportunities so that our business continues 
to be strong in the years to come. 

Our focus on returns to shareholders is through our 4i 
principles, all of which are underpinned by ESG. 

Shareholder returns are an output of our inputs, which are our 
business model and ESG principles.

Environment Carbon 

All concrete products available in low 
carbon and ultra-low carbon.

2025

50% of concrete products available in low 
carbon and ultra-low carbon.

Carbon capture storage and 
utilisation trial plant operational.

Alternative fuels used in mobile 
equipment.

Alternative fuels used in fixed 
equipment (e.g. lime and asphalt).

All kilns are carbon neutral.

Net-zero.

2025

2030

2032

2038

2040

First module ordered and due for commissioning 
in April 2023.

Trials with alternative fuels for fleet and electronic 
fleet and mobile equipment.

Upgrade of fuel handling systems and burners 
underway in Nordkalk for the use of alternative 
fuels.

Aqualung agreement signed that will look to have 
all kilns carbon neutral by 2030.

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ESG

Subject

Target

Date

Progress to date

Environment

Energy 
intensity 
and 
efficiency

Resource 
utilisation 
and 
circular 
economy

2.5% reduction in energy intensity.

2030

100% third party energy sourced 
from renewable means.

2030

Site and Virtual PPA under review across 
each business with some businesses already 
expanding their renewable energy sources.

100% of all manufactured products 
can utilise waste / recycled 
materials.1

2025

100% utilisation of all production 
materials.

2027

Products such as asphalt, concrete, and 
concrete products are already using, where 
specification allows, waste / recycled materials 
such as nappies, RAP, PFA, GGBS and recycled 
aggregates. 

The production of quicklime uses waste 
materials as fuel in the process of making 
quicklime.

Set up of Baltic Aggregates enables the 
aggregates not suitable for industrial mineral 
application to be processed and supplied to 
construction markets.

Environment

Pillar

Key Focus Area

Targets

How Did we do

Focus for 2023

Achieve 
Carbon net-
zero road map 
targets.

Reduction in 
energy intensity 
and increase 
in energy 
efficiency.

Maximisation 
of resource 
utilisation 
and circular 
economy.

Sustainable use 
of reserves and 
resources

Responsible use key 
resources including 
raw material, mineral 
and water;

Optimise energy use 
and minimise impact 
of our operations on 
the environment;

Contribute to 
sustainable 
construction 
and address 
environmental 
aspects either 
through product 
production or use.

Continue to focus 
and accelerate where 
possible our net-zero 
road map targets.

Commissioning of 
first carbon capture 
aqualung module.

Continue energy and 
fuel optimisation to 
reduce the reliance on 
fossil fuels.

Submission and 
validation of SBTi data.

Published first ESG report which 
contains extensive detail on its 
Environmental, Social and Governance 
policies and initiatives, as well as a 
detailed roadmap to net-zero.

Energy surveys commissioned across 
platforms that have found multiple 
opportunities and savings.

Appointment of Kinect Energy to 
give dedicated focus on energy 
procurement and hedging.

Increase green energy sourcing 
initiatives including new wind and solar 
installations and further increases 
of existing solar capacity on site at 
Soignies.

Successful “nappy-enhanced” asphalt 
trial using asphalt that contained 
recycled nappies.

Partnership with Aqualung, to 
construct Europe’s first industrial scale 
carbon capture facility in Scandinavia.

PPG platform acquired and developed 
additional UK sites to facilitate the 
development and manufacture of ultra-
low carbon products.

Our strategic collaboration with 
Marshalls focusing on pushing existing 
technologies while also developing 
new manufacturing techniques.

ESG

Subject

Target

Date

Progress to date

Environment

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1  Where industry specifications allow for it

 
ESG ROADMAP & FOCUS AREAS

Road Map to Net Zero

2025

All concrete 
products available 
in low carbon and 
ultra-low carbon

Carbon Capture 
Storage and 
utilisation trial plant 
operational

100% of all 
manufactured 
products can utilise 
waste / recycled 
materials*

2027

100% utilisation of all 
production materials

2030

Alternative fuels used 
in mobile equipment

2.5% reduction in 
energy intensity

100% third party 
energy sourced from 
renewable means

As a business, our overall aim is to ensure 
sustainable returns to our shareholders. As a 
Group we are committed to ensuring this can be 
done in a manner where we minimise risks, seize 
opportunities and so that our business continues 
to be strong in the years to come.

Our focus on returns to shareholders is  
through our 4i principles, all of which are 
underpinned by ESG.

Shareholder returns are an output of  
our inputs, which are our business model and 
ESG principles.

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Alternative fuels  
used in fixed equipment 
(e.g lime and asphalt)

2038

All kilns are carbon 
neutral

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NET
ZERO

CARBON

ENERGY INTENSITY 
AND EFFICIENCY

RESOURCE UTILISATION
AND CIRCULAR ECONOMY

*where industry specifications allow for it

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CO2CO2CO2CO2 
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ESG report 

Social

Pillar

Key Focus Area

Targets

How Did we do

Focus for 2023

Ensure people leave 
work in the same or 
better condition than 
when they arrived.

Support the physical 
and mental health of 
our employees and 
their families.

Total injury 
frequency rate 
and harm injury 
frequency rate 
reduction year 
on year.

Increase 
workforce 
engagement 
and retention.

Increase board 
diversity.

Social

Attract, train, retain, 
and engage our 
workforce.

Be a good 
neighbour; Source 
local, buy local, sell 
local, invest local.

13% year-on-year reduction in incident 
frequency rate; 19% reduction in 
serious harm frequency rate and over 
70% year-on-year increase in near hit, 
hazard, and risk reporting. This data 
is not just limited to employees, but 
included all those that work on our 
sites including contractors. 

Commitment to employees as well 
as their families and the communities 
through Family Fun Day with over 200 
people attending. 

Climate and supervisor surveys that 
has allowed each business to focus on 
key areas identified by our employees.

Increased female board diversity to 
25% with regards to NEDs through the 
appointment of Axelle Henry.

Continued development of our working 
relationships with the military and 
military employment charities. 

Engagement of apprenticeship 
schemes as well as school and 
university placements to offer careers 
to those both at the start of their 
careers or those looking for change or 
coming back to work later in life.

Continual roll out of 
supervisor alignment 
programme for Health 
& Safety.

Continued focus on 3 
core Health & Safety 
areas: Structure & 
Compliance; Proactive 
Prevention; and Learn 
& Improve.

Alignment of all 
business to group core 
risks to continue to 
drive SIF reduction.

Continue to promote 
Board diversity in 
addition to current 
diversity of 25% of 
female NEDs. 

Continue to work 
with government 
agencies, education 
establishments and 
communities to offer 
long term employment 
opportunities.

Governance

Pillar

Key Focus Area

Targets

How Did we do

Focus for 2023

Promote QCA 
and Corporate 
Governance Codes;

Ensure proactive 
Board oversight and 
independence of 
committees;

Focus on Risk 
Management and 
mitigation, including 
cyber;

Ensure transparency 
on reporting and Tax.

Continue to 
implement, and 
transparently 
disclose, 
compliance 
and matters 
relating to ESG.

Maintain 
ongoing 
compliance 
in a dynamic 
environment 
across multiple 
jurisdictions.

Appointment of Axelle Henry as an 
independent NED.

Appointment of Company Secretary 
to bolster the Group’s already strong 
corporate governance function, 
reporting to the Board on all 
compliance related matters.

Alignment of cyber security policy as  
well as other overarching policies 
across the Group.

Enhancement of governance 
education within the Group through 
the use of Formity training and 
compliance system.

Governance

Review opportunity 
for improvement of 
Investor relations 
function within the 
Group.

Interaction with 
institutional investors’ 
ESG & Stewardship 
analysts to ensure 
compliance with 
reporting requirements.

Be a leading business 
of compliance that 
meets the expectations 
of our shareholders and 
potential investors in a 
timely fashion.

Disclosure

TCFD pillar

Recommended disclosure

SigmaRoc summary

Governance

 –    Board’s oversight of  

climate-related risks and 
opportunities.

 – Management’s role in assessing 

and managing climate related risks 
and opportunities.

The Board has the highest level of responsibility for climate-related 
issues and is supported by various committees including the Audit 
Committee, which is responsible for monitoring ESG performance.

In 2021, the Board agreed a road map to developing ESG through 
TCFD, SASB and development of ESG targets with 2022 being 
the first year of reporting to SASB and where data limited, putting 
process in place to capture for the following year.

Strategy

 –     Climate-related risks and 

opportunities identification.

 –     Climate-related risks and 
opportunities impacts.

 –     Resilience of the organisation’s 

strategy.

ESG is core in all of our key decision-making.
Both the Board and management teams review where  
climate-related risks and opportunities might occur, as well as their 
significance and connection to other risks. 
This information allows us to challenge our strategy to ensure it is 
as resilient as possible.

Risk 
Management

 –     Identifying and assessing  

climate-related risks.

 –     Managing climate-related risks.
 –     Integration into overall risk 

management.

Climate-related risks and opportunities are identified and  
managed both locally and at Group level with our CTO 
coordinating all aspects.

The identification, assessment and effective management of 
climate-related risks and opportunities are actively discussed 
during Board and management meetings.

Metrics and 
Targets

 –     Climate-related metrics.
 –     Scope 1, Scope 2, and Scope 3 

To ensure meaningful and appropriate metrics and targets for our 
stakeholders, we adopted SASB recommended disclosures. 

emissions. 

 –     Climate-related targets.

We also comply with SECR, which is independently produced, 
and voluntarily expand the remit to include all our operations, not 
just the UK.

As a further commitment in 2022 we committed to SBTi and will 
use the 2022 data to submit and independently validate targets.

SASB provides industry-specific standards for disclosing performance on sustainability topics including, but not limited to, 
climate in a comparable manner that are reasonably likely to have a material effect on financial performance of companies in 
each industry. They will be used when assessing the relevant disclosures under the Metrics and Targets Pillar of the TCFD and 
are among the most frequently cited tools in the TCFD’s Implementation Annex.

SASB Topic

Accounting Metric

Category

Unit of 
Measure

Code

2022 Result

Greenhouse 
Gas 
Emissions

Gross global Scope 1 
emissions, percentage 
covered under emissions-
limiting regulations.

Quantitative Metric tons 

(t) CO₂-e, 
Percentage 
(%)

EM-CM-
110a.1

Greenhouse 
Gas 
Emissions

Discussion of long-term 
and short-term strategy 
or plan to manage Scope 
1 emissions, emissions 
reduction targets, and an 
analysis of performance 
against those targets.

Discussion 
and Analysis

n/a

EM-CM-
110a.2

665,937 tCo2e
90% covered by EUETS
Further detail can be seen in the 
independent SECR data on page 
109

The road to net-zero is detailed on 
pages 100-103
Our decarbonisation program of our 
kilns is detailed on page 53
The commitment to SBTi and the 
use of OneClick will allow for both 
independent targets to be set as 
well as tracked page 28

Air Quality

Air emissions such as:

Quantitative Metric tons 

(1) NOx,

(2) SOx,

(t)

EM-CM-
120a.1

699.10

1544.19

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SASB Topic

Accounting Metric

Category

Unit of 
Measure

Code

2022 Result

Energy 
Management

(1) Total energy consumed, Quantitative Gigajoules (GJ) 
Percentage (%)

EM-CM-130a.1

(2) percentage grid 
electricity,

(3) percentage alternative,

(4) percentage renewable

4,413,519 GJ of energy

16% from grid

21% alternative energy including 
Guarantee of origin for alternative 
energy.

2% renewable energy including 
guarantee of origin of renewable 
energy and solar PV

Water 
Management

Total fresh water 
withdrawn,

Quantitative

Thousand 
cubic 
meters (m.) 
Percentage 
(%)

EM-CM-
140a.1

312,878m3 of water withdrawn
14% of process water is drawn from 
fresh water supplies

Waste 
Management

Amount of waste 
generated

Quantitative Metric tons 

(t)

EM-CM-
150a.1

Biodiversity 
Impacts

Biodiversity 
Impacts

Workforce 
Health & 
Safety

Description of 
environmental 
management policies and 
practices for active sites

Terrestrial acreage 
disturbed; percentage of 
impacted area restored

Total recordable incident 
rate (TRIR)

Discussion 
and Analysis

n/a

EM-CM-
160a.1

Quantitative Acres (ac) 

Percentage 
(%)

Quantitative Rate

EM-CM-
320a.1

EM-CM-
160a.2

3,737 acres of land is disturbed 
16% of land was restored

Workforce 
Health & 
Safety

Product 
Innovation

Number of reported cases 
of silicosis

Quantitative Number

EM-CM-
320a.2

Total addressable market 
and share of market for 
products that reduce 
energy, water, and/or 
material impacts during 
usage and/or production

Quantitative Reporting 
currency 
Percentage 
(%)

EM-CM-
410a.2

4,496,901t
This is predominantly related to 
overburden removal at quarries. 
These materials are often stored 
or used for restoration purposes 
including the recultivation of 
indigenous soils for remediation. 
The creation of new business is 
also looking to use surplus material 
into other business streams and 
therefore reprocess historical and 
future material once deemed waste.

Full detail is on pages 111 and 112

Data has historically been collected 
as an amalgamation for Direct 
Employee, Contract employee 
and external contractors as it is 
believed that we are responsible 
for all those on our site regardless 
of employment status. The 
performance of health and safety 
can be found on page 112

None

For further information on 
occupational health, please see  
page 113 

Market share is not a straightforward 
number to capture given all 
the industries and end markets 
we operate in, however in the 
Greenbloc and Sustainability section 
on pages 29, 99-116 we clearly 
show how construction material 
product innovation is being driven.

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Accounting Metric

Category

Unit of 
Measure

Code

2022 Result

Pricing 
Integrity and 
Transparency

Total amount of monetary 
losses as a result of legal 
proceedings associated 
with cartel activities, 
price fixing, and anti-trust 
activities.

Quantitative Reporting 

currency

EM-CM-
520a.1

Zero

Group Environmental Report

Dealing with Carbon Dioxide

To deal with CO2, it is crucial to understand how CO2 is 
governed and how it is produced.

The European Union Emissions Trading 
System (EUETS) 

The EUETS regulates greenhouse gas emissions of energy 
and energy-intensive industries as well as inner-European 
aviation. The EUETS puts a cap on the carbon dioxide (CO2) 
emitted by business and creates a market and price for carbon 
allowances. It covers 45% of EU emissions, including energy 
intensive sectors and approximately 12,000 installations.

The EUETS works on the ‘cap and trade’ principle. A ‘cap’, or 
limit, is set on the total amount of certain greenhouse gases 
that can be emitted by factories, power plants and other 
installations in the system within the cap, and companies 

receive or buy emission allowances which they can consume, 
or trade as needed.

An allowance gives the right to emit a tonne of CO2, and 
any allowance surplus to requirement can be accumulated 
and used to offset future emissions or traded. The current 
surpluses were inherited from previous phases of the scheme 
where emissions were consistently below the system’s cap. As 
such the value of these allowances was low and were traded 
at less than €10/tonne.

The directive concerning Phase IV (2021-2030) of the ETS 
entered into force on 8 April 2018. However, secondary 
legislation and guidance documents defining the legislative 
background of the Phase IV Trading Period are still ongoing. 
The new benchmark values (the value at which the free 
allowance is set) is below the actual emissions of the covered 
industries, and this deficit, along with market measures such 
as a stability reserve held by the EU and the faster reduction in 
year-on-year allowances has driven traded prices up to current 
values of €80-€100/tonne.

Lime Industry and CO2
For lime there are sources of CO2 along the production process, however there are two primary sources that make up the 
majority of CO2 emissions: fuel and process emissions from the calcination part of the process.

CO2
Power & energy

CO2
Fuel & process 
emissions

Drilling and 
blasting

Crushing

Sieving

Secondary 
crusher

Calcination of 
limestone to 
produce quicklime

Water

Milk of
lime

Hydration of 
quicklime

Hydrated 
lime

Water

Mining
Mining

Calcination
Calcination

Hydration
Hydration

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The calcination process is simply the formula of deriving CaO from CaCO3 using heat. 

CaCO3

Energy

CaO

CO2

The two main sources of CO2 from the calcination part  
of the process are as follows: Combustion CO2 (~25% 
to 35%) is produced from the burning of fossil fuels, 
while process CO2 (~65% to 75%) results from the actual 
calcination of limestone. 

All the CO2 sources have different mitigation solutions. 
Power and energy CO2 can be reduced through energy 
efficiency, renewable electricity, fuel efficiency and renewable 
/ alternative fuels. We are actively working on renewable 
energy solutions and Power Purchase Agreements.

Combustion CO2 can be reduced by energy efficiency 
and fuel selection, as well as by carbon capture utilisation 
or sequestration (CCUS). We are in the process of moving 
away from fossil fuels and are due to commission our first 
module of the CCUS in April 2023.

Process CO2 can only be addressed by CCUS, with our 
first module due to be commissioned in April 2023.

Carbon capture utilisation or sequestration

The emissions from lime kilns are well suited to technologies 
such as CCUS as they have a higher CO2 content 
than most post-combustion gases and contain fewer 
contaminants due to using only limestone as feedstock and, 
due to product requirements, more stringent fuel quality 
requirements and typically lower gas filtration temperatures.

Post-combustion capture (PCC) systems constitute a 
technically and economically viable solution to reduce 
emissions in a variety of sectors. Retrofitting existing plants 
with post-combustion capture units may be the only 
effective and economically viable way to reduce emissions 
at the stack, without affecting the process upstream. The 
availability of a range of commercially ready technologies 
suitable for different types of CO2 point sources is crucial 
for the wide deployment of CCUS systems. Given the wide 
ranges of plant sizes and flue gas specifications relevant 
to different emitting sources, it is unlikely that a single 
technology could fit best in all cases. Therefore, for effective 
process design, it is convenient to consider multiple 
technologies and select the most efficient and economically 
viable option to serve the purpose.  

In addition to the membrane technology chosen by 
SigmaRoc, there are a few other options, each with their 
own opportunities and risks:

 –  Amine scrubbing is acknowledged as the most mature 
CCUS solution. Absorption-based processes for the 
separation of CO2 from flue gases have been widely 
researched, and their effectiveness has been proven 
through testing on a variety of scales, from laboratory 
to commercial. For lime, this solution is both costly and 
requires a substantial footprint with significant energy 
consumption and issues with disposal of waste residues.

 –  Cryogenic capture and separation is a more recent 

development offered by industrial gas companies as 
an extension of their in-house process. For Lime, this 
solution is both costly and requires a substantial footprint 
with significant energy consumption.

SigmaRoc believes that membrane technology is optimally 
suited to our operations, in summary, due to the proven 
technology, small footprint, low capital and operating costs, 
and high efficiencies.

Membrane-based processes, on the one hand, are 
characterised by relatively simple process schemes (e.g., 
no flowing liquid phase, fewer auxiliary streams and fewer 
pieces of equipment), which make them cost-competitive 
at small scales. On the other hand, components like 
membrane modules are generally limited in their maximum 
size and benefit less from economies of scale, but do offer 
a modularity that allows for smaller investments over time to 
follow market effects.

The choice to pursue membrane technology in our lime 
production process was based upon several criteria – 
capital requirement, footprint, cost of operation, complexity 
of operation and overall environmental impact.

Membrane technology is, as mentioned previously, limited 
in scale and suitable for modularity, allowing smaller 
capital investment to track, as an example, allowances 
in EUETS. The modules are small (within a sea container) 
and would require, in our largest plant, four modules to 
cover process emissions. There are relatively few moving 
parts, no hazardous liquids or residues and, due to efficient 
kiln processes where we have little remaining waste heat 
which can be used in amine technologies, lower energy 
penalty to operate (typically less than 50% of competitive 
technologies). In addition, when the produced CO2 is 
utilised in other processes, specific purity requirements 
could be met by the addition of another stage of separation 
within the existing modules.

Streamlined Energy and Carbon Report 
(SECR) 

Energy use and associated greenhouse gas emissions

Current UK based annual energy usage and associated 
annual greenhouse gas (GHG) emissions are reported 
pursuant to the 2018 Regulations. 

Organisational boundary

Energy use and associated GHG emissions are reported 
across the Group as defined by the operational control 
approach. This includes operations in the UK and Channel 
Islands (North West), Belgium (West) and Estonia, Finland, 
Poland, Sweden, Turkey & Spain (North East). This exceeds 
the minimum mandatory requirements set out in the 2018 
Regulations for ‘large unquoted companies’, which only 
requires reporting of UK based energy use and emissions.

Acquisitions during 2022 include Johnston Quarry Group 
in January 2022 which forms the England Platform and 
RightCast which joined the UK based PPG Platform in April 
2022. Spanish based La Belonga joined the North East 
region in July 2022.

Reporting period

The annual reporting period is 1 January to 31 December 
each year and the energy and carbon emissions are aligned 
to this period. The energy and emissions for the newly 
acquired entities have been included from their respective 
acquisition dates. Reported emissions for Nordkalk in 2021 
have been revised to present a full 12 months, thereby 
providing a more accurate like for like comparison with 
2022 emissions.

Quantification and reporting 
methodology

The 2019 UK Government Environmental Reporting 
Guidelines and the GHG Protocol Corporate Accounting 
and Reporting Standard (revised edition) were followed. 
Emissions calculations were based on emission factors 
published in the 2022 UK Government GHG Conversion 

Factors for Company Reporting, Statistics Finland Fuel 
Classification 2022, Swedish Environmental Protection 
Agency Emission Factors 2022 and the latest available 
factors from the Association of Issuing Bodies (2021), 
Jersey Electricity (2020) and Guernsey Electricity (2020). 
The report has been reviewed independently by Briar 
Consulting Engineers Limited.

Electricity and gas consumption were based on invoice 
records with some pro-rata and benchmark estimations 
carried out to complete missing data. Transport usage was 
calculated from a combination of mileage and fuel records 
where possible. Transport is not necessarily reported 
separately outside the UK and Channel Islands as it is 
included within onsite fuel usage. Gross calorific values 
were used except for mileage energy calculations as per 
Government GHG Conversion Factors.

The associated emissions are divided into mandatory and 
voluntary emissions according to the 2018 Regulations. For 
large unquoted organisations, the 2018 Regulations define 
mandatory emissions as those originating in the UK coming 
from purchased electricity, gas combustion and purchased 
fuel for transport (including mileage expense claims). 
Reporting energy and emission sources outside of these 
sources is considered voluntary and reported separately. 

The emissions are further divided into their relevant scopes 
as per the GHG Protocol. The scopes are defined as:
 – Scope 1: Direct GHG emissions that occur from sources 

owned or controlled by the organisation.

 – Scope 2: Indirect GHG emissions from the generation 

of acquired and consumed electricity, steam, heating or 
cooling.

 – Scope 3: Other indirect GHG emissions that occur as a 
consequence of the organisation’s activities but occur 
from sources not owned or controlled by the organisation.

 – Outside of scopes: Biogenic CO2 emissions that scope 
1 impact are determined to be ‘net zero’, since the fuel 
source itself absorbs an equivalent amount of CO2 during 
the growth phase as the amount of CO2 released through 
combustion. Therefore, the direct CO2 emissions are 
reported separately.

Breakdown of energy consumption used to calculate emissions (kWh):

Energy type

Mandatory energy:

Gas

Purchased electricity

Transport fuel & site fuel

2021

2022

UK

Group Total1

UK

Group Total1

453,856

302,329,485

362,199

208,190,947

5,113,311

189,655,953

7,024,295

192,100,497

52,777,809

396,547,065

55,806,376

434,579,215

Total energy (mandatory)

58,344,976

888,532,503

63,192,870

834,870,659

Voluntary energy:

Bioenergy

Coal

Generated electricity2

Total energy (voluntary)

-

-

-

-

22,177,534

428,002,960

1,906,467

452,086,961

-

-

-

-

32,094,230

387,013,242

4,499,105

423,606,577

Total energy (mandatory & voluntary)

58,344,976

1,340,619,464

63,192,870

1,258,477,236

1  The Group total includes emissions from the UK, Channel Islands, Belgium, and Nordkalk (Estonia, Finland, Poland, Sweden and Turkey, with 

Spain from August 2022 only).

2 Electricity generated by solar photovoltaic panels. Reported energy includes any exported energy to the grid.

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Breakdown of emissions associated with the reported energy use (tCO₂e)
Emission source

2021

2022

Mandatory emissions:

UK

Group Total3

UK

Group Total3

Scope 1

Gas 

Company owned vehicles & site fuel

Scope 2

83

13,035

49,091

103,962

66

13,859

32,501

113,712

Purchased electricity (location-based)

1,086

43,200

1,358

42,771

Scope 3

Category 6: Business travel (grey fleet only)

Total gross emissions (mandatory)

77

14,281

103

196,356

88

15,371

311

189,295

Voluntary emissions:

Scope 1

Bioenergy (CH₄ & N₂O)

Coal

Process related emissions

Total gross emissions (voluntary)

Total gross emissions (mandatory & 
voluntary)

Outside of scopes (CO2 only)
Bioenergy 

Petrol/diesel biofuel content

Intensity ratio: tCO2e per million-pound 
turnover:

Mandatory emissions only

Mandatory & voluntary emissions

-

-

-

- 

14,281

-

227

193.0

193.0

1.4

140,333

413,896

554,230

750,586

7,586

251

423.2

1,617.6

-

-

-

-

15,371

223

142.3

142.3

2.0

131,205

388,517

519,724

709,020

11,013

239

351.9

1,317.9

3  The Group total includes emissions from the UK, Channel Islands, Belgium, and Nordkalk (Estonia, Finland, Poland, Sweden and Turkey, with 

Spain from August 2022 only).

Breakdown of emissions across the Group by region for 2022 only (tCO2e)4
Emission source

Bioenergy (CH₄ & N₂O)

Coal

Gas 

Company owned vehicles & site fuel

Process related emissions

Scope 2

North West

West

North East

-

-

66 

18,431

-

-

-

108 

6,180

-

2 

131,205 

32,328 

89,101

388,517 

2022

Total

2.0 

131,205 

32,501 

113,712

388,517 

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1,473 

1,715 

39,583 

42,771 

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Category 6: Business travel (grey fleet only)

Total gross emissions

Outside of scopes

Bioenergy (CO2)
Petrol/diesel biofuel content

Intensity ratio

95 

20,065 

-

239 

-

216 

311 

8,003 

680,952 

709,020 

-

-

11,013 

-

11,013 

239 

tCO2e per million-pound turnover

144.2

91.6

2,186.2

1,317.9

4  The North West includes the UK and Channel Islands; the West region includes Belgium; the North East region includes Nordkalk.

Intensity ratio

The intensity ratio is total gross emissions in metric tonnes 
CO2e per total million-pound (£m) turnover. This is calculated 
separately for ‘mandatory’ emissions and ‘mandatory & 
voluntary’ emissions for the UK and regionally for the North 
West, West and North East SigmaRoc regions. This financial 
metric is considered the most relevant to the Company’s wide-
ranging activities and allows a comparison of performance 
across other organisations and sectors. 

Energy efficiency action during current 
financial year
Emissions for Nordkalk (the North East region) have been 
reported for a full 12 months in 2021 (despite joining SigmaRoc 
in September 2021) and 2022 to provide comparable annual 
emissions for the Group. Consequently, the reported emissions 
reveal that Group wide relative and absolute emissions have 
reduced in 2022 despite the acquisitions of Johnston Quarry 
Group, RightCast and La Belonga.

Fuel consumption emissions in the North East region have 
reduced with a transition away from coal (reduced by 9,128 
tCO2e) and coke gas (reduced by 4,648 tCO2e) to alternative 
and biofuel sources, such as recycled fuel oil (increased by 
6,459 tCO2e) and biofuel in Finland and Sweden rotary kilns.
Gross UK emissions have increased by 1,090 tCO2e in 2022, 
largely due to the acquisitions of Johnston Quarry Group (1,816 
tCO2e) in 2022, which has countered emission reductions 
elsewhere in UK operations. Nevertheless, operational 
efficiencies at the Wales Platform quarries of Harries have 
resulted in energy efficiency improvements. In Blaencilgoed 
Quarry, usage of DERV has reduced by 0.14 litres per tonne 
of aggregate production when compared to 2021 data. At the 
same quarry, power to a small submersible water pump has 
been converted from a diesel generator onto mains electricity, 
which has a lower carbon intensity.

At the Harries Bolton Hill Quarry, operational efficiencies have 
resulted in DERV usage reducing by 0.3 litres per tonne in 
mobile plant aggregate production, while at the main fixed 
crushing plant, electricity consumption has reduced by 1.5 kWh 
per tonne in aggregate production compared to 2021 data. 
Furthermore, a fabricated steel structure has been constructed 
at Alltgoch Quarry over the cold feed bins at the asphalt plant as 
part of a development to keep the aggregate and dust drier and 
save energy costs.

The Ronez operations are trialling low temperature asphalt to 
reduce use of gas oil and have been improving metering and 
monitoring of energy usage to identify further opportunities in 
2023. At Poundfield Products, work has begun to replace the 
diesel-powered forklift truck fleet with electric powered models, 
while also investigating the feasibility of installing solar panels at 
the main manufacturing sites.

Water management and biodiversity

SigmaRoc understands the pressing need for businesses to 
preserve the environment they operate in, safeguarding our 
shared home for current and future generations. 

SigmaRoc is dedicated to limiting and mitigating the impact 
of its activities on the environment and focusing on growing 
sustainably. To do so, we have implemented several polices 
including Biodiversity and Environment & Water. 

Water management

Our operations minimise the amount of fresh water extracted, 
with 86% of our water being recycled and reused. In several 
sites, excess water is routed to local water supply companies 
for treatment and then use in local communities. Several of our 
quarries have extensive amounts of naturally collected water 
which, subject to agreement with local authorities, can be used 
as alternative water sources.

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Biodiversity

Despite the Group operating over a large area of 
approximately 4,000 acres, this year saw around 16% 
restored according to agreed programs. Even in our working 
environments, we take a proactive approach to biodiversity 
and our sites have created working ecosystems. This 
includes breeding programs and the re-introduction of wildlife 
such as the Red Bill Chough, not seen for over 100 years, 
nesting of peregrine falcons, as well as other flora and fauna. 
Operational considerations not only seek to minimise impact, 
but also actively enhance biodiversity in surrounding areas.

Some sites are close to Sites of Specific Scientific Interest 
where our working relationships with local groups and 
national agencies have helped ensure they thrive. Where 
there is risk of impact, the valuable species are moved to 
other suitable or created areas.

The businesses’ environmental aspects are guided by their 
individual operating policies, ensuring that local requirements, 
as well as wider requirements, are met.

The operating policies list the guiding principles of the 
management system and provide a framework for setting 
quality, environmental and H&S goals supporting strategy 
and aiming for continuous improvements being implemented 
within all businesses.

Before commencing operation of a site, the potential 
environmental and social impacts are assessed through an 
Environmental Impact Assessment process, after which an 
application for an environmental permit is typically made. 

During the operating phase of the sites, environmental 
management is guided by environmental permits, which set 
regulatory requirements for the operation and closure, and 
by the environmental management system of the Company 
including ISO14001. 

Active sites have restoration and water management plans 
which are often set as part of the permitting process and 
are updated as required. The environmental management of 
the sites covers matters such as ecological and biodiversity 

impacts, waste generation, noise impacts, emissions to air, 
discharges to water, natural resource consumption, and 
hazardous chemical usage.

The Group is committed to minimising its impact on 
the natural environment where it operates. We integrate 
biodiversity management into all steps of planning, 
production and closure of sites whilst maintaining a hierarchy 
of mitigation (avoid, minimize, restore, and finally offset).

Group Health and Safety Report

2022 once again saw continued focus and commitment 
to health & safety across a larger and more diverse Group. 
Importantly, the Group has seen a further 13% reduction in 
the Total Recordable Incident Rate (TRIFR) and 8% reduction 
in Lost Time Injury Frequency Rate (LTIFR). Strong focus on 
near hits and hazard & risk elimination resulted in an increase 
in positive and lead indicating reporting by more than 70%. 
It should be clearly noted that when reporting we cover 
all those that work on our site regardless of employment 
status and as such this includes employees, agency staff, 
consultants, and contractors.

TIFR

TIFR per 1mhrs for employees and contractors

2022

2021

2020

2019

-13%

-29%

-23%

Operating in numerous countries across the UK and Europe, 
we continue to ensure compliance with local regulation, 
which is managed at a local level, whilst at the same time 
integrating these businesses to align with best practice 
Group H&S standards.

Principles

The Group continues to drive its overarching H&S standards which we believe supported the continual improvement in health and 
safety in 2022. 

Structured & Compliant

1. All sites audited with identified 
improvement actions.

2. All corrective actions properly c 
losed out and on time.

Proactive Prevention

1. Core risks with live action plan.

2. Uncontrolled Risks and hazards 
(HIRE) logged and actioned.

Learn & Improve

1. No repeat Events.

2. Performance and events  
promptly communicated  
throughout the businesses.

Core risks

HighVizz

SigmaRoc has worked closely with consultants and post-
graduate researchers to continual improve our health & safety. 
This year has seen the focus on core risks which include:

 – Contact with moving vehicles / objects

 – Entrapment by machinery / moving parts

 – Hit by suspended load / falling objects

 – Falls from height
 – Trapped by significant mass / energy
 – Powders and COSHH material handling

Two primary areas of focus to improve our control of core 
risks has been on:

1.  Serious Injury or Fatality (SIF) framework; and

2.  Investigations.

SIF is the focus on events that could lead to Serious Injury 
or Fatality; in simple terms those events that cause or have 
the potential to cause life threatening / changing injuries. This 
work has been heavily developed in recent times and is seen 
to be the next evolution of well-grounded traditional H&S 
principles; driving the focus to those areas that are of the 
most serious nature. This has supported and aligns with our 
core risks and enables us to develop improved reporting to 
ensure action on those key areas.

The Group also maintains a strong focus on conducting 
detailed investigations, not only after an event has happened, 
but also before events happen. For example, through Bow 
Tie analysis, core risk events can be reviewed before they 
happen. This allows causes to be proactively identified so 
safety barriers can be implemented to mitigate routes to 
an adverse H&S event. On the flip side, the effects and 
consequences of the event are also proactively identified so 
safety barriers can be implemented to mitigate the impacts of 
such an event. 

Post event investigation, including investigation on near hits, 
and externally publicised events both in our industry and 
beyond, is conducted. The level of investigation is proportional 
to the severity and seeks to review not just the event, but 
also organisation factors, task and environmental conditions, 
individual and team actions, and absent or failed defences. 

It is by these principles and through core risk management 
and investigation that the Group can act to continually deliver 
its year-on-year H&S improvement.

Front line leadership

Following on from 2021, in 2022 the Group concluded 
its initial Group front line leadership initiative. The Group 
continues to support and drive NEBOSH and IOSH (or 
equivalent) training of supervisor and front-line management 
as an on-going process. 

2022 laid the foundation for the 2023 initiative to ensure all 
front-line leaders spend optimal time on site, leading and 
managing safety, quality, and productivity. This includes 
engagement of our front-line leaders, which includes both 
supervisors and managers, and working closely with them to 
ensure they continue to be supported and equipped, whilst 
identifying and eliminating unnecessary process and reporting, 
to maintain a safe, lean, and agile business. 

By focusing on the inputs of having boots on the ground and 
lean processes driven by our front-line leaders, the Group is 
confident that it will see continued improvement in the output 
of not only safety, but also quality and productivity.

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Our ability to manage and report safety continues to thrive 
and develop through our HighVizz app. This includes 
supporting SIF identification, as well as new modules such 
as pre-start inspections, and enables our teams to have lean 
processes and systems that ensure risks are managed more 
effectively and efficiently.

Culture

The safety culture of the Group continues to have strong 
focus, as every new business comes with differing 
approaches to safety prior to joining SigmaRoc. In 2022, the 
H&S part of the monthly senior management meeting was 
given its own specific meeting held two weeks earlier. The 
meeting has been expanded to a wider audience to promote 
focus, communication and prompt closure of actions, with the 
ability to follow up key actions in the main senior management 
team meeting two weeks later; thereby driving the “plan, do, 
check, act” cycle used by the UK HSE.

The initiative based on football league tables in Belgium 
has shown huge success and has resulted in year-on-year 
increased engagement of nearly 400% for near hits, hazard, 
and risk identification and a subsequent reduction in SHIFR 
by 23%.

Occupational Health

Both SASB and the UK Minerals Product Association have a 
focus on occupational health, especially Silicosis. As a Group 
we have a hierarchy of controls, based upon best health 
and safety guidance and an assessment of the risks within 
our sites and workplaces ensuring compliance with HASWA 
1974, MHSWR 1999, COSHH Regulations, L140 - HSE 
ACOP for HAVS, PUWER 1998, HSG258 - HSE Controlling 
airborne contaminants at work (use of LEVs) and EH75-4 and 
INDG 463 Silica and control methods.

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These include:

 – Use of Risk assessments, safe systems of works and 

COSHH assessments;

 – Minimising dust generated by our operations through 
engineering controls such as enclosing processing 
equipment and transfer points, water suppression, use of 
spray systems for dust encapsulation and local exhaust 
ventilation;

 – Periodic personal and local monitoring by external 

consultants and subsequent personal assessments against 
recognised exposure limits;

 – Health questionnaires and health surveillance of staff by 

Occupational Health specialists;

 – Where surveys identify potential exposure above recognised 

exposure limits warning signage is posted and workers 
are required to wear appropriate respiratory protective 
equipment including full and half masks, and air fed 
breathing systems;

 – Time limits set for and policy of job rotation to minimise 

exposure times in addition to the use of specialised PPE in 
areas of risk;

 – Training for new employees and regular refresher training for 
existing employees to raise awareness of the risks to health 
that can arise from exposure; and

Training in the correct use and maintenance of PPE provid-
ed to protect their health and other checks such as face fit 
testing for dust masks.

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ESG report 

Stakeholders

Stakeholders (in 
alphabetical order)

Description

Colleagues

Customers and 
Suppliers

Communities

Investors

Regulators / local 
Government

We have a dedicated workforce of over 2,000 across 
the Group. We recognise our dedicated workforce as 
a key driver of the value derived from the business. 
Our colleagues are experienced and continuously 
developed to fulfil their potential. All employees are 
offered a fair benefits and compensation package 
relative to their role and level in the organisation. We 
encourage share ownership where it is available and, 
where possible, are working to setup where it is not 
currently in place.

All our businesses are decentralised and locally 
focused so that we know the customers’ and 
suppliers' areas like they do. We work alongside 
our customers to provide “right first time” service 
and to seek proactive and innovative solutions to 
support requirements. “Right first time” is key to 
success and ensuring customer loyalty as part of our 
long-term success. We recognise the huge role our 
suppliers play in our long-term success. We strive 
to ensure timely payments and maximise value to 
support the delivery of our customers’ needs. We 
balance economic requirements with sustainability 
considerations over the whole supply chain.

How we engage

Site presence and visual felt leadership. 
Employee groups and committees and 
unions. Focus on development training 
and succession planning. Decentralised 
approach with flat management 
allowing easy access to all staff. 
Employee benefit offerings that can also 
extend to family members.

Prioritise a local focus on both 
customers and suppliers. Engage 
directly from our sites so that the 
customer and supplier deal directly with 
the site they are supplying or buying 
from. Ensure timely payments are made 
to suppliers. Functional and intuitive 
websites and digital solutions focused 
on the customer. Ensure adequate 
checks and due diligence are done on 
customers and suppliers.

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By being decentralised and local we are at the heart 
of the communities in which we operate allowing 
us to be good, knowledgeable, supportive, and 
engaging neighbours.

Proactive approach and active 
participation in community and 
industry working groups, forums, and 
committees.

All our Shareholders play an important role in the 
continued success of our business. We maintain 
purposeful and close relationships with them either 
directly or via wider mediums such as Q&A webinars 
and conferences. We seek to be transparent and 
give clear and consistent messages across all 
communication channels.

We look to develop and sustain good relationships 
with many regulators who govern our businesses to 
ensure the success of our business and maintaining 
our license to operate. We are committed to 
adherence of legal and regulatory requirements. We 
are committed to have independent review / oversight 
be it internally or externally. We are committed 
to a sustainability framework following review of 
international standards.

Dedicated forums such as AGM, 
annual and interim webinar Q&As and/
or interactive investor presentations. 
Annual and interim reports, trading 
statements and RNS. Regular phone 
calls and dialogues. Broker and 
NED contacts. Site visits, investor 
roadshows, investor conferences.

Regular dialogue with Governments, 
Government agencies, regulators, and 
industry groups. Active membership 
of the industry bodies such Mineral 
Products Association, Federation 
Industries Extractives and European 
Lime Association. Effective and 
clear policies to ensure governance. 
Education and training of staff to 
reinforce compliance with regulations.

MATERIALITY ASSESSMENT

Increasing importance to Stakeholder vs. increasing importance to SigmaRoc

2

1

4

3

11

6

12

9

5

10

8

7

Increasing importance to SigmaRoc

1.   Sustainable use of reserves 

and resources

2.   Responsible use of key 

resources

3.   Optimal energy use and 
minimal impact on the 
environment

4.   Contributing to sustainable 

construction and addressing 
environmental aspects

5.   Ensure people leave work in 
the same or better condition 
than when they arrived

6.   Supporting the physical 
and mental health of our 
employees and their families

7.   Attract, train, retain and 
engage our workforce

8.   Be a good neighbour, source 
local, buy local, sell local, 
invest local

9.   Promote QCA and Corporate 

Governance

10.  Ensure proactive Board 

oversight and independance of 
commitees

11.  Focus on risk management 

and mitigation

12.  Ensure transparency on 

reporting and tax

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Stakeholder engagement 

The Directors believe they have acted in the way most likely 
to promote the success of the Group for the benefit of its 
members as a whole, as required by s172 of the Companies 
Act 2006. The requirements of s172 are for the Directors to:

 –     Consider the likely consequences of any decision in the long 

term;

 –     Act fairly between the members of the Company;

 –     Maintain a reputation for high standards of business 

conduct;

 –     Consider the interests of the Group’s employees;

 –     Foster the Group’s relationships with suppliers, customers 

and others; and

 –     Consider the impact of the Group’s operations on the 

community and environment.

The application of the s172 requirements are demonstrated 
throughout this report and the Accounts as a whole, with the 
following examples representing some of the key decisions 
made in 2022 and up to the date of these Accounts:

 –     Continued pursuit of buy and build growth strategy: the 

Group has continued its buy and build growth strategy, 
completing three acquisitions during 2022 and entering 
into a strategic JV partnership with ArcelorMittal.

 –     Management of Russian invasion into Ukraine: the Group 

successfully evacuated family members of Ukrainian 
colleagues into Poland and provided support near the 
Ukrainian border to those that were unable to evacuate.

 –     Dealing with impact from UPM union strike: the Group 
endured a 4-month union strike at one of its largest 
customers and managed to mitigate the impact through 
a combination of operational efficiency programmes and 
cost savings initiatives.

 –     Safety initiatives: safety and wellbeing of our colleagues 
is one of our top priorities and the Group continued to 
improve its health and safety standards.

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STRATEGIC REPORT
ESG report 

Further specific information as to how the Board has had regard to the s172 factors:

Section 172 factor

Key examples

Page references

Consequence of any decision 
in the long term

CEO’s strategic report

Business model

Our strategy

Chief Technical Officer's risk report

ESG report

Governance report

Interests of employees

CEO’s strategic report – ESG, Safety & Innovation

Chief Technical Officer's risk report – Health & safety

Chief Technical Officer's risk report – Recruitment & retention

ESG report – Group health & safety

ESG report – Stakeholders

Fostering business 
relationships with suppliers, 
customers and others

Chief Technical Officer's risk report – Quality

ESG report – Social

Impact of operations on the 
community and environment

Chief Technical Officer's risk report – Operational disruption & key 
equipment failure

ESG report – Stakeholders

CEO’s strategic report – ESG, Safety & Innovation

Chief Technical Officer's risk report – Environment & climate change

ESG report – Social

ESG report – Environment

ESG report – Streamlined Energy & Carbon Report (SECR)

Maintaining high standard of 
business conduct

Acting fairly between 
members

Membership

ESG report – Stakeholders

Business model

Our strategy

ESG report

Governance report

ESG report – Governance

ESG report – Stakeholders

Governance report

Membership to trade organisations, industry  
bodies and other agencies is critical to ensure continual 
improvement in all that we do and to help facilitate the 
ongoing changes our industry and our customers face. 
Across our platforms we both support and are supported 
by National and International bodies such as:

 –     Mineral Product Association (MPA): UK industry trade 

association for the aggregates, asphalt, cement, 
concrete, dimension stone, lime, mortar and silica sand 
industries.

 –     Federation Industries Extractives (Fediex) of which we 

have representation on the Board.

 – FedBeton: Federation for ready-mixed concrete  

in Belgium.

3, 4, 5 Based on Group Revenue, not number of businesses

 –     European Lime Association (EuLA) of which we have 

representation on the Board.

 –     Industrial Minerals Association Europe (IMA Europe).

 –     European Calcium Carbonate Association (CCA).

 –     International Lime Association (ILA).

Further to these bodies, businesses in the Group also have 
ISO accreditation or equivalent in ISO 9001 Quality (78%3 
); ISO 14001 Environment (76%4) and ISO 45001 Health 
& Safety (69%5). Some businesses are currently going 
through ISO accreditation programs. Benelux was reviewed, 
however the local business and product accreditations held 
were deemed to have greater relevance than the ISO, for 
both our customers and end-users. 

Further information on ESG will be available via our 
dedicated ESG Report and at www.sigmaroc.com. 

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Stakeholder 
report

STRATEGIC REPORT
Stakeholder report

We understand and respond to the needs of our 
stakeholders. The Board is committed to and actively 
encourages effective relationships and communication 
with the Group’s stakeholders. This will realise a greater 
understanding of each stakeholder’s needs. The Board 
believes that by taking into account these needs and 
interests, the value for the Group and the long-term success 
of the Company will be maximised.

Investors and lenders

Our investors and lenders play an important role in 
the continued success of our business. We maintain 
purposeful and close relationships with them and our 
sustainable long-term growth strategy provides value for 
our investors and lenders.

Communities

Colleagues

We recognise our dedicated workforce as a key driver of the 
value derived from the business. Our colleagues are offered 
development opportunities to further fulfil their potential. 
All colleagues are offered a fair benefits and compensation 
package relative to their role and level in the organisation.

Customers and suppliers

We work alongside our customers by striving to deliver 
the best customer service and seek innovative solutions to 
support many of the major projects on which we operate. 
We pride ourselves on going the extra mile and recognise 
customer loyalty as a key part of our long-term success. 
The Group also recognises the huge role its suppliers play 
in its long-term success. We endeavour to maximise value 
from our suppliers and work with them to support the 
delivery of our customers’ needs.

Regulators/ local government/ industry associations

Developing and sustaining good relationships with the 
many regulators who govern our business is central to the 
success of our business and maintaining our license to 
operate. We are committed to adherence to our legal and 
regulatory requirements. We actively support our industry 
representatives in pursuing the best regulatory regime for 
our business.

We are at the heart of the communities in which we operate 
so recognise our responsibility to be good, supportive and 
engaged neighbours. Our businesses have active liaison 
programmes with the communities in which they operate, 
and they seek to take into account their interests and 
concerns in their operational activities.

We are making a material difference through the impact we 
have with everyone who lives, works, travels and socialises 
in communities throughout the UK, Channel Islands and 
Europe. The Board believes that it has acted in a way which 
is likely to promote the success of the Company for the 
benefit of its members and other stakeholders through the 
decisions it has taken in the year to 31 December 2022.

The Board is responsible for establishing the Group’s long-
term strategy and objectives; however, it recognises that 
the executive and senior managers of our businesses play 
an important role in achieving these goals. The Board has 
an effective delegation structure in place which allows local 
management and their workforces to engage effectively 
and react accordingly, to understand the needs of their 
suppliers, customers, communities and regulators at a local 
level. The Board is of the opinion that engaging the majority 
of its stakeholders on a local level is the most effective 
process for the long-term success of the Group.

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Stakeholder report 

Their material 
issues

Methods of 
engagement

Colleagues

Customers & 
Suppliers

Regulators/ 
Local 
government/ 
Industry 
associations

Investors & 
Lenders

Communities

 –     Physical working 

 –     Cost

 –     Climate change

 –     Governance

 –     Noise 

 –      Profitability 

 –     Transportation 

and return on 
investment 

 –      Sustainability 
commitments 

 –      Environment

 –      Strategy

routes 

 –     Health and safety 

 –     Environment 

 –      Communication

 –     Support for local 

causes

 –     Capital markets 

 –     Targeted 

events

consultations 

 –     Site visits and 

field trips

 –     Local liaison 
meetings 

 –     Emissions and 
discharges 

 –     Site restoration 
and aftercare 

 –     Health and 

safety 

 –     Logistics 
practices 

 –     Planning 

compliance

 –     Mandatory 
returns and 
applications 

 –      Regulator visits 
and meetings 

 –      Notices 

 –     One-to-one 
meetings

 –     Liaison with 

 –     Telephone calls

local MPs and 
government 
offices

 –      Participation 
in industry 
associations

 –     Investor 

conferences

 –     Brokers’ 
contacts

 –     AGM

 –     Social media 

 –     Community events 

 –     Letters, emails, 

notices 

 –     Site tours 

 –     Websites 

 –     School visits

conditions

 –     Product 

 –     Pay and benefits 

development

 –     Communication

 –     Service levels 

 –     Opportunities 

for development 
and training 

 –     Sustainability 
commitments

 –     Product quality

 –     Health, safety 
and wellbeing 

 –     Sustainability

 –     Payment practices

 –     Colleague 

 –     Direct engagement

 –     Contracts and 

terms of business 

 –     Third-party 

engagement 

 –     Website 

 –     Industry 

associations 

 –     Tender quotations 

 –     360 feedback

engagement 
surveys

 –     Colleague focus 

groups

 –     Intranet, 

post, emails, 
newsletters, 
notices and 
presentations.

 –     Colleague 
groups 
and social 
committees 

 –     DNED for 
Workforce 
engagement 

 –      Personal 

development 
reviews

Value created Improved 

engagement 
with colleagues 
will ensure we 
develop, motivate 
and retain our 
valued workforce 
while promoting 
and attracting new 
colleagues that 
want to work for 
us.

Engaging with our 
customers helps 
us deliver excellent 
customer service, 
build relationships to 
enable us to get the 
right product, to the 
right place, at the 
right time for the right 
price. Engaging with 
our suppliers helps us 
deliver a sustainable 
supply chain and 
circular economy.

Through our 
engagement 
we are able to 
respond and 
contribute to 
sector needs 
and requirements 
and deliver on 
compliance 
and regulatory 
standards and 
have input in their 
development. 

Our engagement 
with investors 
and lenders 
ensures that 
they have a clear 
understanding of 
our business and 
objectives and 
are prepared to 
continue with their 
financial support.

Positive engagement 
with our communities 
ensures that we 
understand and 
take into account 
their concerns and 
needs so that we 
can address these 
and improve the 
communities that we 
live and work in.

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Highlights of stakeholder engagement  
in 2022

The Board, together with members of the Executive 
Committee and other senior and local managers, continued 
to engage proactively with all our stakeholders. The following 
are just some examples of those engagements in 2022.

Colleagues

Successfully evacuated family members of Ukrainian 
colleagues into Poland and provided support near the 
Ukrainian border to those that were unable to evacuate.

As part of our commitment to employees as well as their 
families and the communities they love and work in, 
West Wales held a Family Fun Day with over 200 people 
attending. This was an opportunity for everyone to come 
together, have fun and relax as well as raise money for 
local charities with additional support from other local 
businesses.

Customer and suppliers

During the year the Group had frequent engagement  
with ArcelorMittal, a customer and more recently strategic 
JV partner.

In September 2022, the Company’s CEO and CFO met 
with the CEO of SSAB to discuss their ongoing commercial 
relationship, with particular emphasis on sustainability.

Regulators, local government and 
industry associations

Each Platform works closely with their local regulators, 
governments and industry associations with many of our 

senior management team representing either working 
groups, committees or holding board positions such as our 
board position with the European Lime Association. 

By having our Platforms work closely with these bodies, we 
ensure we are the forefront of our local communities, leading 
our businesses forward as ambassadors of best practice.

Investors and lenders

In May 2022 the Company returned to Mello, a private 
investor conference held in London, where it presented at 
two separate sessions to groups of 40 shareholders. The 
Company was also present at the Investor Show, a private 
investor forum where in the past two years it has displayed 
its more recent innovations and acquisitions, such as 
Greenbloc and Bath Stone.

In October 2022 the Company organised a private 
investor event at the Isokon Gallery in London, providing 
shareholders the opportunity to meet with the executive 
management team and receive an update on the Group’s 
trading for the third quarter of 2022, as well as an update 
on its Greenbloc ultra-low carbon concrete product range.

Communities

We continue to develop our working relationships with the 
military and military employment charities and are registered 
with the Career Transition Partnership. We help facilitate 
resettlement and transition from military to civilian life as well 
as support civilian spouses and partners of serving and ex-
Forces personnel on their journey into employment.

Across all our platforms, our business model of local 
business for local communities ensures that we continue 
to integrate into the areas we work, supporting both other 
local businesses, projects, and communities.

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GOVERNANCE REPORT
Board members 

Our Board comprises an executive leadership 
team with extensive experience of the international 
aggregates industry, supported by experienced 
non-executive directors who bring strong 
governance disciplines and a valuable external 
perspective to our business. 

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David Barrett
Executive Chairman

Max Vermorken

Chief Executive Officer

Garth Palmer

Chief Financial Officer

Appointed to Board: August 2016

Independent: No 

Committees: Nominations Committee

Background: Co-founded London Concrete in 
1997, subsequently building the business from one 
concrete plant in London to over a dozen plants 
around the capital. London Concrete was sold to 
Aggregate Industries and is currently the number 
one concrete supplier in London, with flagship 
projects such as the London Olympics, the Shard, 
the US embassy and the new Bloomberg building. 
Having previously worked with Pioneer, David 
retired from London Concrete in 2015 and is widely 
considered an expert in the industry.

Other Directorships: David also holds 
directorships in various London based Companies 
including Thames Aggregates Limited, Thames 
Recycling Limited and Capital Concrete Limited.

Appointed to Board: August 2016

Appointed to Board: January 2017

Independent: No

Independent: No 

Committees: Member of the Safety Committee

Background: Prior to SigmaRoc, Max was 
strategic advisor to the CEO of LafargeHolcim 
Ltd (LafargeHolcim) Northern Europe, the world’s 
largest construction materials group. His role 
included responsibility for the merger of Lafarge 
SA and Holcim Ltd in the region involving the only 
Day 1 integration of the two businesses following 
the hive-down and integration of two large asset 
portfolios – a mix which included two cement plants 
and a multitude of down-stream aggregates and 
construction materials assets. Prior to working for 
LafargeHolcim, Max worked in private equity at 
Luxembourg-headquartered The Genii Group, where 
he reported directly to its founding principals. Max 
holds a PhD in Financial Economics from University 
College London and Bachelor and Master degrees 
in both Civil Engineering and Financial Economics 
from University College London and the University of 
Brussels respectively. 

Other Directorships: Max is also a Director of a 
consulting company Skyeye Consulting Limited. 

Committees: Member of the AIM and MAR 
Compliance Committee

Background: Garth was Finance Director of 
SigmaRoc from inception until April 2020, at 
which point he stepped down from his part-time 
executive role, but remained as a non-executive 
board member and Company Secretary. In 
August 2021, in conjunction with the acquisition of 
Nordkalk, Garth returned as a full-time executive 
and Chief Financial Officer. Prior to joining 
SigmaRoc, Garth began his career providing 
audit and corporate services in Perth, qualifying at 
KPMG, before moving to London in 2005 where 
he provided compliance services across a range 
of industries. This led Garth to a Finance Manager 
role at Apple where he spent four years working 
on business process improvement, developing 
and implementing new and improved financial 
processes and systems before co-founding 
Westend Corporate LLP providing corporate 
and financial consulting services for AIM listed 
companies, predominantly within the mining and 
resources industries. Garth holds a Bachelor of 
Commerce Degree and is a member of the Institute 
of Chartered Accountants in England and Wales.

Other Directorships: Garth holds directorships in 
multiple businesses including Sport:80 Limited, GT 
Corporate Limited and GT Corporate AB. 

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Jacques Emsens

Non-Executive Director

Appointed to Board: April 2020 

Independent: Yes 

Committees: Member of the Audit Committee 

Background: Jacques is a founding member 
of JPSeven and is a member of the Board of 
Sofina, and numerous other companies. Jacques 
has a long history in defining and implementing 
strategies of industrial businesses including 
Sibelco. Jacques holds a degree in Business 
Administration from the European University of 
Antwerp, from the Université Libre de Bruxelles 
and from the London Chamber of Commerce and 
Industry and speaks French, Dutch and English.

Other Directorships: Jacques holds 
directorships in multiple businesses including 
JPSeven, Sofina, Le Pain Quotidien.

Simon Chisholm

Non-Executive Director

Appointed to Board: April 2020

Independent: Yes 

Committees: Chairman of Audit Committee; 
Chairman of the AIM and MAR Compliance 
Committee; Chairman of the Remuneration 
Committee; Chairman of the Nominations 
Committee

Background: Simon is currently the Head of  
Equity Capital markets at Redburn (Europe), 
a subsidiary of Rotshchild & Co. Previously he 
was the founder and managing director of Feros 
Advisers spending over 20 years working in the 
investment arena including as a fund manager 
with Henderson. In 2013, Simon established 
Feros Advisers in response to the significant 
regulatory and technological changes that were 
impacting investment managers and quoted 
companies. Simon joined Berenberg in 2003 and 
established an office for them in London. Over 
the next 10 years Simon was one of the principal 
architects in building the business from 3 people 
in London to around 140 and establishing the 
bank as a recognised brand name in the global 
investment community. Before joining the sell-
side, Simon was a fund manager investing in 
European equities first at Singer & Friedlander 
and then at Henderson Global Investors and 
ran European Smaller Companies investment 
products. After University Simon joined Coopers 
and Lybrand and qualified as a Chartered 
Accountant.

Other Directorships: Simon is currently an active 
director at Feros Advisers Ltd and Whitefoord Ltd.

Tim Hall

Non-Executive Director

Axelle Henry

Non-Executive Director

Appointed to Board: April 2019 

Appointed to Board: March 2022

Independent: Yes

Independent: Yes

Committees: Member of the Safety Committee, 
Member of the Remuneration Committee

Committees: AIM and MAR Compliance 
Committee

Background: Tim has spent his entire career in 
the aggregates industry, most recently as CEO of 
Breedon South, a business he helped build from 
inception and from which he retired in August 
2017. Prior to this he was director of Tarmac 
Limited’s Western Area; managing director of 
Tarmac Western Limited, the company formed by 
Anglo American from the former assets of Nash 
Rocks, Tilcon and Tarmac. He spent the previous 
27 years with Nash Rocks, latterly as managing 
director. Tim brings a wealth of experience and 
knowledge of the industry to the Board and will be 
an asset in SigmaRoc’s continued development, 
as he has been with Breedon. Tim’s knowledge 
and network within the industry supports 
SigmaRoc’s growth in the aggregates and 
construction materials market in the UK. 

Other Directorships: Tim holds directorships 
in multiple businesses including Langsun 
Developments Limited and T G Concrete 
Bridgnorth Limited. 

Background: Axelle has served as Chief Financial 
Officer for Verlinvest Group, a Brussels-based 
international investment business, since April 
2014 and also serves on the board of directors 
for a number of their private companies, as well 
as Nasdaq quoted Vita Coco. She has held a 
variety of senior executive positions, including as 
Deputy Chief Financial Officer of Groupe Bruxelles 
Lambert. Ms Henry has over 20 years’ experience 
in the Private Equity and Investment Sector, 
starting her career with KPMG as senior auditor. 
She holds degrees in commercial engineering 
from the Solvay Business School.

Other Directorships: Axelle holds directorships 
in multiple businesses including Verlinvest, 
Cofintra SA, Beverage Holdco Inc. and STAK 
Armonea.

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GOVERNANCE REPORT 
Corporate Governance report

The Directors recognise the importance of sound corporate 
governance. As a company whose shares are traded on 
AIM, the Board has decided to comply with the QCA Code. 
In addition, the Directors have adopted a code of conduct 
for dealings in the shares of the Company by directors and 
employees and are committed to maintaining the highest 
standards of corporate governance. Garth Palmer, in his 
capacity as CFO, has assumed responsibility for ensuring 
that the Company has appropriate corporate governance 
standards in place and that these requirements are followed 
and applied within the Company as a whole.

The corporate governance arrangements that the Board 
has adopted are designed to ensure that the Company 
delivers long term value to its Shareholders and that 
Shareholders have the opportunity to express their views 
and expectations for the Company in a manner that 
encourages open dialogue with the Board.

The Board recognises that its decisions regarding strategy 
and risk will impact the corporate culture of the Company 
as a whole and that this will impact the performance of 
the Company. The Board is very aware that the tone and 
culture set by the Board will greatly impact all aspects of the 
Company as a whole and the way that employees behave. 
A large part of the Company’s activities are centred upon 
what needs to be an open and respectful dialogue with 
employees, clients and other stakeholders. Therefore, the 
importance of sound ethical values and behaviours is crucial 
to the ability of the Company to successfully achieve its 
corporate objectives. The Board places great importance 
on this aspect of corporate life and seeks to ensure that this 
flows through all that the Company does. 

The key governance related matters that occurred during 
the financial year ended 31 December 2022 were:

1.  Appointment of Axelle Henry as Independent NED.

2.   Appointment of Julie Kuenzel as Company Secretary, 
charged with overseeing Group wide compliance and 
reporting to the Board.

3.   Adoption of Competition Compliance and Diversity & 

Inclusion policies.

Corporate Governance Report 

The QCA Code sets out 10 principles that should be applied. 
These are listed below together with a short explanation of 
how the Company applies each of the principles: 

Principle One 

Establish a strategy and business model which promote 
long-term value for shareholders

Strategy and purpose: The Company invests in and 
acquires businesses in the construction materials sector. 
The principal activity of the Group is the production of  
high quality aggregates and supply of value-added 
construction materials.

The Group’s aim is to create value for shareholders through 
the successful execution of its buy and build strategy in the 
construction materials sector.

Business model: The Group’s business plan is to acquire 
high quality and well managed assets in the construction 
materials sector, providing the Group with a strong 
operating platform, diversified income streams and stable 
cash flows in order to grow the Group and execute on its 
strategy further.

The Group is run as a commercially-minded business, 
seeking to return an increase on investment capital to 
Shareholders. Proven methods of raising capital through 
recognised means available to publicly-listed companies 
are relied on to fund growth acquisitions. Following each 
acquisition, the Group seeks to implement operational 
efficiencies that improve safety, enhance productivity, 
increase profitability and ultimately create value for 
Shareholders.

Principle Two 

Seek to understand and meet shareholder needs and 
expectations

Shareholder dialogue: The Company remains committed to 
listening and communicating openly with its shareholders to 
ensure that its strategy, business model and performance 
are clearly understood. Understanding what analysts and 
investors think about the Company, and in turn, helping 
these audiences understand the Company’s business, is a 
key part of driving the business forward and the Company 
actively seeks dialogue with the market. The Company does 
so via investor roadshows, attending investor conferences, 
hosting capital markets days and through regular reporting.

Private Shareholders: The AGM is the main forum for 
dialogue between retail Shareholders and the Company. 
The Directors routinely attend the AGM and are available 
to answer questions raised by Shareholders. The results 
of the AGM are subsequently published on the Company’s 
corporate website. Private Shareholder events are held 
periodically, such as the private retail event held at the 
Isokon Gallery in October 2022.

Institutional Shareholders: The Company actively seeks to 
build relationships with institutional Shareholders through 
calls, presentations, and visits. Shareholder relations are 
managed primarily by the CEO, but the Executive Chairman 
and Senior Independent Non-Executive Director are also 
available to meet with major shareholders to discuss issues 
of importance.

Principle Three 

Take into account wider stakeholder and social 
responsibilities and their implications for long-term success

Engagement: Engaging with stakeholders strengthens 
relationships and helps make better business decisions  
to deliver on commitments. The Company is regularly 
updated on wider stakeholder engagement feedback 
to stay abreast of stakeholder insights into the issues 
that matter most to them and the Group’s business, and 
to enable the Board to understand and consider these 
issues in decision-making. With Shareholders, suppliers 
and customers, employees are one of the most important 
stakeholder groups and employees’ engagement surveys 
and feedback are closely monitored.

Employees, contractors and suppliers: The Group has 
established a safe and healthy work environment, which 
complies with the relevant occupational health & safety 
laws. The Group ensures that the workforce is provided 
with sufficient training to develop the appropriate skills and 
knowledge to complete the tasks requested of them.

For the sake of occupational health & safety, all contractors 
and sub-contractors are treated in exactly the same manner 
as employees.

Communities: The Group has supported and given back to 
the community by participating in a selection of projects in 
recent years. Further details of the Group’s environmental, 
social and governance related initiatives for the year are 
detailed in the ESG and Stakeholder Reports included in 
these Accounts. 

Modern slavery: As part of our mission to “do the right 
thing” we oppose modern slavery in all its forms and work 
to prevent it by any means that we can. We expect anyone 
who has any suspicions of modern slavery in our business 
or our supply chain to raise their concerns without delay.

Principle Four 

Risk Management 

Embed effective risk management, considering both 
opportunities and threats, throughout the organisation

Risk register: To assist the Board with effectively managing 
risk across the Group the Company has established a risk 
register which is reviewed periodically.

Internal control: The Company has an established 
framework of internal control, the effectiveness of which 
is regularly reviewed by executive management, the Audit 
Committee and the Board in light of an ongoing assessment 
of significant risks facing the Company and the Group.

The Company recognises that maintaining sound controls 
and discipline is critical to managing the downside risks to 
its business plan.

The Board has ultimate responsibility for the Group’s system 
of internal control and for reviewing its effectiveness. The 
Audit Committee assists the Board in discharging its duties 
regarding the financial statements, accounting policies 
and the maintenance of proper internal business, and 
operational and financial controls.

The Board presently considers that the internal controls in 
place are appropriate for the size, complexity and risk profile 
of the Group. 

Principle Five 

Maintain the board as a well-functioning, balanced team led 
by the chair

Board composition: The Board comprises the Executive 
Chairman, two Executive Directors, and four Non-Executive 
Directors, all of whom are deemed independent. The Board 
considers, after careful review, that the Independent Non-
Executive Directors bring an independent judgement to bear.

The biographies of the members of the Board can be found 
on the Company’s website (https://sigmaroc.com/investor-
relations/board/).

The Board is satisfied that it has a suitable balance 
between independence and knowledge of the Group and 
its operations to discharge its duties and responsibilities 
effectively. The Board receives periodic updates from the 
management team. All Directors are encouraged to use 
their independent judgement and to challenge all matters, 
whether strategic, operational or financial.

Membership of the Board, its activities, performance and 
composition are subject to periodic review.

Conflicts of interest: The Company has effective procedures 
in place to monitor and deal with conflicts of interest. The 
Board is aware of the other commitments and interests 
of its Directors, and changes to these commitments and 
interests are reported to, and, where appropriate, agreed 
with, the rest of the Board.

Formal quarterly  
meetings and meetings 

Director

Attended

Eligible to 
attend

Max Vermorken

David Barrett

Garth Palmer

Simon Chisholm

Jacques Emsens

Tim Hall

Axelle Henry

Principle Six 

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Ensure that between them the directors have the necessary 
up-to-date experience, skills and capabilities

Suitability: The Board guides and monitors the business 
and affairs of the Company on behalf of the shareholders by 
whom they are elected and to whom they are accountable. 
The Board is satisfied that given its size and stage of 
development, between the Directors, it has an effective 
and appropriate balance of skills and experience across 
technical, commercial and financial disciplines.

The Company complies with the QCA Code and full 
biographical details of the Directors and their skills and 
experience can be found on the Company’s website: 
https://sigmaroc.com/investor-relations/board/).

Appointment, removal and re-election: The Nominations 
Committee makes decisions regarding the appointment and 
removal of Directors, and there is a formal, rigorous, and 
transparent procedure for appointments.

Independent advice: All Directors are able to take 
independent professional advice in the furtherance of their 
duties, if necessary, at the Company’s expense. In addition, 
the Directors have direct access to the advice and services 
of the Company Secretary and Chief Financial Officer.

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The Board and its Committees receive appropriate and 
timely information prior to each meeting, with a formal 
agenda being produced for each meeting, and Board and 
Committee papers distributed several days before meetings 
take place.

Roles and responsibilities: There is a clear division of 
responsibility at the head of the Company between the 
Chairman and the CEO.

The Board is supported by the Audit, Remuneration, AIM 
and MAR Compliance and Nominations committees. Each 
committee has access to such resources, information, and 
advice as it deems necessary, at the cost of the Company, 
to enable the committee to discharge its duties.

As the Group grows and develops the Board will periodically 
review its corporate governance framework to ensure it 
remains appropriate for the size, complexity, and risk profile 
of the Group.

Principle Ten 

Communicate how the company is governed and is 
performing by maintaining a dialogue with shareholders and 
other relevant stakeholders

Communication: The Company attaches great importance 
to providing shareholders with clear and transparent 
information on the Company’s activities, strategy and 
financial position through the Annual Report and Accounts, 
full-year and half-year announcements, the Annual General 
Meeting (AGM) and one-to-one meetings with large existing 
or potential new shareholders.

The Company announces significant developments via 
various outlets including the London Stock Exchange’s 
Regulatory News Service (RNS).

The Company made its policies and the terms of reference 
for its committees available on its website.

The Board receives regular updates on the views of 
shareholders through briefings and reports from the CEO 
and the Company’s brokers. The Company communicates 
with institutional investors frequently through briefings with 
management. In addition, analysts’ notes and brokers’ 
briefings are reviewed to achieve a wide understanding of 
investors’ views.

GOVERNANCE REPORT 
Corporate Governance report 

Principle Seven 

Evaluate board performance based on clear and relevant 
objectives, seeking continuous improvement

Appraisal: The Chairman assesses the individual 
contributions of each member of the Board to ensure 
that their contribution is relevant and effective; they are 
committed; and where relevant, they have maintained  
their independence.

An evaluation of the Board will be carried out annually and 
on a three-yearly cycle. The evaluations may be facilitated 
by an independent evaluator.

The Remuneration Committee will compare the 
performance of the Board with the requirements of its 
charter, the Company vision and KPIs.

Succession planning is considered by the Board as a whole. 
The Board will annually review and make recommendations 
relating to talent management and succession planning for 
the Board and the CEO.

Principle Eight 

Promote a corporate culture that is based on ethical values 
and behaviours

Code of conduct: The Board has adopted a code of 
conduct which provides a framework for ethical decision-
making and actions across the Group. The code of conduct 
reiterates the Group’s commitment to integrity and fair 
dealing in its business affairs and its duty of care to all 
employees, contractors and stakeholders.

Each Board member’s adherence to the Group’s code of 
conduct is assessed as part of the annual Board review 
and appraisal.

Anti-corruption and bribery: The Board has adopted an anti-
corruption and bribery policy to further ensure honest and 
ethical conduct of employees. The Company also provides 
periodic training to employees to ensure they are aware of 
their responsibilities in relation to bribery and corruption.

The Company has a zero-tolerance approach to bribery and 
corruption. The Company’s General Counsel is responsible 
for monitoring compliance with and maintaining the anti-
corruption and bribery policy.

Principle Nine 

Maintain governance structures and processes that  
are fit for purpose and support good decision-making by 
the board

Board programme: The Board is responsible for approving 
the Company strategy and policies, for safeguarding the 
assets of the Company, and is the ultimate decision-making 
body of the Company in all matters except those that are 
reserved for specific shareholder approval.

The Board meets at least four times each year in 
accordance with its scheduled meeting calendar and 
maintains regular dialogue between Board members, in 
particular between the CEO, the Chairman and the non-
executive Board members.

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Audit Committee  
report

GOVERNANCE REPORT 
Audit Committee report

The Company has an established framework of internal control, the effectiveness of which is regularly reviewed by the Audit 
Committee in light of an ongoing assessment of significant risks facing the Company and the Group. The Audit Committee 
assists the Board in discharging its duties regarding the financial statements, accounting policies and the maintenance of 
proper internal business, and operational and financial controls.

Key activities carried out in 2022

During the year, the Committee met formally two times and 
discussed the following:

 – Internal controls and risk management

 – Taxation

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 – External audit tender process

 – Audit planning

 – Auditor’s fees and independence
 – Auditor’s effectiveness
 – Interim report and annual report

 – Internal audit

 Meeting Attendance 

 – Going concern and viability statement
 – Significant accounting matters
 – Plans for transition to new accounting standards

 – Whistleblowing

 – The Audit Committee’s terms of reference

The Committee is made up of Independent Non-Executive Directors and shall meet not less than twice in each financial year. 
Due to logistical reasons, the Committee delayed its second meeting in 2022, scheduled for December 2022, to January 2023. 
That meeting was held on 13 January 2023.

Director 

Simon Chisholm 

Jacques Emsens 

Committee Duties 

The Audit Committee carries out the duties below for the 
Company, major subsidiary undertakings and the Group as 
a whole, as appropriate: 

 –  Monitor integrity of the financial statements and financial 

performance; 

 –  Review financial statements, significant financial returns 
to regulators and any financial information of a sensitive 
nature; 

 –  Review and challenge internal financial controls and risk 

management systems including the review of matters of a 
non-financial nature; 

 –  Review and challenge accounting policies, accounting 

methods and adherence to accounting standards;

 –  Review and make recommendation with regards to the 
external auditor, including appointment, independence, 
objectivity, effectiveness, performance and remuneration; 

 –  Consults with the external auditor on the scope of their 
work and reviews all major points arising from the audit; 

 –  Ensure fully functional whistleblowing policy. 

Chair Statement 

The Audit Committee was chaired by myself and comprises 
of Jacques Emsens as the other member. The Committee 

Meetings Attended

Eligible to attend

1

1

1

1

has relevant financial experience at a senior level as set 
out in their biographies. The Audit Committee met once 
formally in 2022 and also held informal discussions with 
the external auditor as appropriate. The principal activities 
of the Audit Committee in respect of the year ended 31 
December 2022, and the manner in which it discharged its 
responsibilities, were as follows: 

Financial Statements 

The Audit Committee reviewed and agreed the external 
auditor’s strategy and approach in advance of their audit for 
the year ended 31 December 2022, and reviewed reports 
on the outcome of the audit. The Audit Committee also 
reviewed the 2022 Preliminary Results Announcement, 
the 2022 Annual Report, the 2022 Interim Results 
Announcement and the 2022 Interim Report. 

Significant Accounting Matters 
During the year, the Audit Committee considered key 
accounting issues, judgements and disclosures in relation 
to the Financial Statements. The most significant of these 
was the risk of the value of inventory, the carrying value 
of investments and the value of goodwill at a Group level. 
The Audit Committee also received communications from 
management and the external auditor on a number of other 
accounting matters, including the valuation of mineral reserves 
and resources, revenue recognition and restoration provisions.

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GOVERNANCE REPORT 
Audit Committee report

Going Concern and Viability 

The Audit Committee reviews supporting papers from 
management to support the Going Concern and Viability 
statements set out on page 145. This includes sensitivity 
analysis over key assumptions. Following this review, the 
Audit Committee recommended to the Board the approval 
of both statements.

External Auditor 

The external auditor, PKF, attends meetings of the Audit 
Committee. The Audit Committee has the opportunity 
to meet with the external auditor without the executive 
directors being present to provide a forum to raise any 
matters of concern in confidence and together discusses 
and agrees the scope of the audit plan for the full year. 
The external auditor reports on the control environment 
in the Group, key accounting matters and mandatory 
communications. The Audit Committee also receives and 
reviews a report from the external auditor setting out to 
its satisfaction how its independence and objectivity is 
safeguarded when providing non-audit services. The value 
of non-audit services provided by PKF in respect of the 
year ending 31 December 2022 amounted to £116,750 for 
due diligence and transactional services (2021: £325,000, 
principally in respect of tax services and due diligence 
and transactional services). During the year there were no 
circumstances where PKF was engaged to provide services 

prohibited by the FRC’s 2019 ethical standard or which 
might have led to a conflict of interest.

The Audit Committee continues to be satisfied with the 
work of PKF and that they continue to remain objective 
and independent. Zahir Khaki is serving his second year as 
Audit partner.

Internal Audit 

The Group does not have a formal internal audit function, 
the CFO performs a number of activities that an internal 
audit function would perform. The Audit Committee receive 
regular formal updates covering planned activities, findings 
of reviews performed and updates on agreed actions from 
previous reviews. The Audit Committee considers this is 
appropriate given the close involvement of the executive 
directors and senior management on a day-to-day basis. 
However, the need for an internal audit function will be 
kept under review by the Audit Committee on behalf of the 
Board. 

This report was approved by the Board on 25 March 2023.

Simon Chisholm 
Non-Executive Director 
25 March 2023

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Remuneration  
Committee report

GOVERNANCE REPORT 
Remuneration Committee report

Chair statement 

I am pleased to present the Remuneration Committee report 
for the year ended 31 December 2022 and can confirm that 
all aspects of executive remuneration are in order.

We undertook a comprehensive review of our remuneration 
policy in 2021, which included advice from advisers and 
consultation with certain Shareholders, to ensure it was 
appropriate given SigmaRoc’s growth to date combined 
with the future growth and development ambition of the 
Group. The focus of 2022 has been on implementing 
the policy and ensuring pay outcomes fairly reflect the 
performance of the Group and take into consideration 
external macroeconomic conditions.

This report comprises three sections: this Annual 
Statement, the Policy Report which summarises our 
current remuneration policy, and the Annual Report on 
Remuneration which sets out the amounts earned by 
Directors in 2022, and how we propose to apply the policy 
in the future.

At the 2023 AGM, Shareholders will have the opportunity 
to vote on the Directors’ Remuneration Report and we look 
forward to your continued support.

The Remuneration Committee has been charged by the 
Board to ensure that the Group’s pay and benefits practices 
are competitive, able to attract high calibre people and to 
ensure those people are suitably incentivised to perform 
and remain with the Group over the long term.

The Board is ultimately responsible for the Group’s 
remuneration policy. The role of the Remuneration 
Committee is to determine the terms of employment for the 
executive directors and senior management of the Group 
within the framework established by the Board.

I chaired the Remuneration Committee throughout the year 
and my co-member Jacques Emsens was replaced by Tim 
Hall on 13 December 2022.

Key activities carried out in 2022

During the year, the Remuneration Committee met formally 
once and discussed the following: 

 – Executive remuneration

 – Annual bonuses
 – Pay and benefit levels across the Group
 – Remuneration review and shareholder consultation

 – Long term incentives

 – The Remuneration Committee report

 – Review of the Committee’s terms of reference

Meeting attendance 

Director 

Simon Chisholm 

Jacques Emsens1

Tim Hall2

Meetings 
Attended

Eligible to 
attend

1

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1

1

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1

1 Resigned from the Committee on 13 December 2022
2 Appointed to the Committee on 13 December 2022 

Committee duties 

The Remuneration Committee is responsible for: 

 –    Determining and agreeing with the Board the framework 
or broad policy for the remuneration of the executive 
officers and other senior managers; 

 –  Taking into account all factors which it deems necessary 

including the level of the Company’s remuneration 
relative to other companies to ensure that members of 
the Company are provided with appropriate incentives 
to encourage enhanced performance and are, in a fair 
and reasonable manner, rewarded for their individual 
contributions to the success of the Company; and

 –  Determining each year whether awards will be made, and 
if so, the overall amounts of such awards, the individual 
awards to executive directors and other senior executives 
and the performance targets to be used. 

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GOVERNANCE REPORT 
Remuneration Committee report

2022 business performance

2022 was another busy, challenging, and very successful 
year for the Group. The Group was able to successfully 
deal with a union strike at one of its largest customers, the 
impacts from the military action against Ukraine and an 
inflationary macro-economic environment.

From a purely financial perspective, in 2022, the Group 
delivered revenue of £538.0 million, Underlying EBITDA 
of £101.7 million, Underlying profit before tax of £62.7 
million and Underlying EPS of 8.0p. This is an increase YoY 
to Underlying EPS of approximately 50% and exceeded 
the initial market consensus estimate of 7.0p by 14%, an 
exceptional achievement. The Group also had strong cash 
generation, closing the year with £68.6 million which kept 
Adjusted Leverage Ratio within our long term target range 
at 1.93x.

The Group also maintained its excellent health & safety 
standards, made further acquisitions in the UK and Spain, 
and entered into strategic partnerships with ArcelorMittal 
and Aqualung while continuing development and adoption 
of Greenbloc and other cement-free solutions.

2022 remuneration outcomes

In 2021 the Committee undertook a complete review of 
our remuneration policy in conjunction with our advisers, 
and in consultation with certain Shareholders, to ensure it 
is appropriate given SigmaRoc’s growth to date combined 
with the future growth and development ambition of the 
Group. A key outcome of the review, and which was 
specifically directed by input from Shareholders, was to 
measure executive director bonuses based on EPS, rather 
than EBITDA, as it currently provides a more complete 
assessment of the Group’s financial performance.

As a result, the 2022 annual bonus was primarily based 
on Underlying EPS with additional performance conditions 
pertaining to corporate objectives – this year focussing on 
the Group’s leverage and sustainability.

The 2022 Underlying EPS targets were set in early 2022, 
following confirmation of market consensus estimates, 
and the maximum target set required an out performance 
relative to market expectations of 10% or more. At the 
outset of 2022 the market consensus estimates for the 
Group’s full year EPS was 7p, therefore the maximum 
target was 7.7p. As noted in the 2022 business 
performance review, the Group performed very strongly 
despite numerous challenges, achieving Underlying EPS 
of 8.0p, being 4% ahead of the maximum target set and 
this measure, applying to 75% of the overall bonus, was 
therefore achieved in full.

The remaining 25% of the overall bonus pertained to 
corporate objectives and this year was focused on:

a.  delivering a net-zero roadmap and maiden ESG report, 
which the Company duly published in April 2022; and

b.  following the acquisition of Johnston, which pushed the 
Group above its 2.0x self-imposed leverage target, to 
end the year with an Adjusted Leverage Ratio of 2.0x or 
below, and which was likewise achieved with the Group 
reporting an Adjusted Leverage Ratio of 1.93x.

The 25% of the overall bonus pertaining to corporate 
objectives was therefore achieved in full in 2022.

The Committee carefully considered whether the annual 
bonus outcome reflects the underlying performance of 
the business, as well as the experience of Shareholders 
and other stakeholders during the year and whether any 
discretion should be exercised. In doing so, the Committee 
specifically considered health & safety performance of the 
Group, factored in broader financial performance (revenue, 
EBITDA, EBITDA margins, free cash flow, CapEx and 
ROIC) and overall delivery of strategy. The Committee was 
satisfied that the bonus outcome was fair, and no discretion 
was exercised.

2023 policy application

For 2023, the Committee will implement the policy 
established in 2021 as follows:

 –  Review of executive director salaries to ensure they 
remain commensurate, taking into consideration the 
inflationary macroeconomic environment in 2022 and its 
evolution in 2023, and the fact that the executive directors 
did not receive any adjustments to their salaries in 2022.

 –  No change to benefits or pension arrangements.

 –  The annual bonus opportunity will continue to be 125% 
of salary for executive directors and be based at 75% of 
Underlying EPS and 25% for corporate objectives, with 
suitable safety standards being maintained as an override.

 – Assessment of the performance measures to determine 

vesting of the initial PSP awards granted in October 2021.

Shareholders’ and employee’s views

We are very grateful for the views received from major 
Shareholders and seek to engage with Shareholders on 
a continuous basis on remuneration matters. I can be 
contacted via the Company Secretary should you have any 
questions on this report or more generally in relation to the 
Group’s approach to remuneration.

While SigmaRoc applies the QCA Code, the Board 
considers the principles and provisions in the UK 
Corporate Governance Code. Under the main code, 
companies are required to establish a mechanism for 
gathering the views of the workforce on all matters, 
including pay. The Board has considered carefully the 
most effective way of achieving this and has appointed 
its General Counsel, Anthony Brockbank, as the Group’s 
workforce representative, reporting to the Board on all 
workforce engagement matters.

Remuneration at a glance

The key elements of executive directors’ remuneration 
packages and our approach to implementation in 2023 are 
summarised opposite:

Fixed pay

Salary 
(annual base)

Pension

Benefits

2021

2022

 – Chairman £375,000

 – no change

 – CEO £475,000

 – CFO £375,000

 – 10% of salary

 – no change

 – includes private medical and car 

 – no change

allowance

Annual bonus

Maximum opportunity

 – 125% of salary

Performance 
measures

 – 75% Underlying EPS

 – 25% corporate objectives

 – Safety overrides entire bonus 

outcome

 – Committee has absolute discretion 

to adjust bonus outcome

 – no change

 – no change

Share based 
incentives

Shareholding 
guidelines

Award level

 – Chairman initial grant of 4,688,460 

 – no change

options

 – CEO initial grant of 11,221,560 

options

 – CFO initial grant of 3,919,860 

options

 – Vest over 3 years following award

Performance 
measures

 – 75% Underlying EPS in FY23, pro-
rata from 6p (0%) up to 8p (100%)

 – 25% relative TSR over 3 year 
period (against AIM 100 Index)

 – majority Shareholder support to 

consider FY22 performance when 
evaluating EPS

In employment

 – none

 – 75% of salary

Remuneration outcomes for 2022

Summary of incentive outcomes

Annual bonus

Underlying EPS

Corporate objectives

Safety

Weighting

% of maximum achieved

% of bonus achieved

75%

25%

Overarching

100%

100%

n/a

75%

25%

n/a

Overall, bonuses of 125% of salary became payable to executive directors.

Policy Report 

Base salary 

Performance measured benefits 
Remuneration performance measures are selected to 
align with the Group’s key performance indicators and the 
interests of Shareholders. Performance targets are set 
so that they are stretching to achieve maximum pay-out 
but also ensure excessive risk exposure is mitigated. The 
Remuneration Committee sets targets that are aligned 
with the Company’s strategy as well as both external 
expectations and the economic environment.

If there are changing circumstances, such as material 
acquisitions or changes in market conditions, the 
Committee retains the ability to adjust or amend 
performance measures and targets to ensure that they are 
relevant and to ensure they still incentivise whilst minimising 
excessive risk exposure.

Our objective is to provide a competitive base salary 
reflective of the skills and experience of the relevant 
individual. These are reviewed annually or on a significant 
change of responsibilities or change in market practice or 
a change in the size or complexity of the business. The 
Remuneration Committee also takes into account external 
market data and pay and employment conditions elsewhere 
in the Group and industry when considering increases 
to base salary levels. There are no performance criteria 
associated with receiving this benefit. 

Annual cash bonus 

To incentivise the delivery of annual financial, strategic and 
safety objectives, executive directors and senior management 
may participate in the annual bonus scheme. The 
Remuneration Committee sets performance measures and 

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GOVERNANCE REPORT 
Remuneration Committee report

targets at the start of the financial year, or later if appropriate, 
and based on the performance, bonuses are paid in cash 
shortly after the completion of the audit of the annual results.

The executives’ annual bonus arrangements are focused on 
the achievement of the Company’s short- and medium-term 
financial objectives, with financial measures selected to closely 
align the performance of the executive directors with the 
strategy of the business and with shareholder value creation. 
Where non-financial objectives are set, these are chosen to 
support the delivery of the longer-term strategic milestones and 
which link to those KPIs of most relevance to each director’s 
individual responsibilities.

For executive directors, the maximum opportunity is 125% 
of salary. This level of incentive opportunity reflects the 
Committee’s desire to retain a high proportion of remuneration 
on variable pay (which is not pensionable).

Financial measures will normally determine the majority or all of 
the bonus opportunity and the balance may be based on non-
financial, strategic, personal and/or ESG-related objectives. 
Where possible, a graduated scale of targets is normally set for 
financial measures, with no pay-out for performance below a 
threshold level of performance.

Any payment is discretionary and will be subject to the 
achievement of stretching performance targets and annual 
bonus may be reduced or eliminated if safety performance or 
accident records deteriorate or reach unacceptable levels.

Performance Share Plan

In conjunction with the acquisition of Nordkalk in August 2021, 
a Performance Share Plan was proposed to drive performance 
of the Group and delivery of the Group’s long-term objectives, 
aid retention of key personnel and align directors’ interests with 
those of Shareholders.

The PSP, together with any other share incentive plan(s), is 
limited to no more than 10% of the issued ordinary share 
capital of the Company over a ten-calendar year period.

The initial awards under the Performance Share Plan 
(referend to henceforth as LTIP) were made to the executive 
directors and certain senior management, with the allocations 
determined by the Remuneration Committee. The LTIP is 
subject to meeting EPS growth and TSR criteria, with the 
first vesting attainable following the financial year ended 31 
December 2023.

The EPS measure is based on growth in Underlying EPS 
over the performance period. The target range is a sliding 
scale set at the time of award, taking account of internal and 
external forecasts, to encourage continuous improvement and 
incentivise the delivery of stretch performance.

The TSR measure takes the total return received by the 
Group’s Shareholders in terms of share price growth over 
a three-year period and compares it with the total returns 
received by shareholders in companies within a predetermined 
and appropriate comparator group. The Remuneration 
Committee’s intention is to reward only TSR performance 
which outperforms the comparator group.

Subsequent awards may be granted by the Remuneration 
Committee within six weeks following the Company’s 
announcement of its financial results for any annual or six 

month period. The Remuneration Committee may also 
grant awards at any other time when it considers there to be 
exceptional circumstances which justify the granting of awards 
(for example, in the case of recruitment).

An employee may not receive such subsequent awards in any 
financial year in respect of Ordinary Shares having a market 
value in excess of 150% of their annual base salary in that 
financial year.

As a general rule, an award will lapse upon a participant’s 
termination of employment within the Group, with certain 
exceptions permissible solely at the discretion of the 
Remuneration Committee (death, injury, ill-health, redundancy 
etc).

The Performance Share Plan and the LTIP awards were 
approved by Shareholders at a general meeting of the 
Company on 2 August 2021.

Pension 

Pensions are provided to aid recruitment and retention by 
allowing the executive directors to make provision for long-term 
retirement benefits. These are comparable with similar roles 
in similar companies. Executive directors are currently entitled 
to receive 10% of their base salary. There are no performance 
criteria associated with receiving this benefit. 

Other benefits 
The Group also provides competitive and cost-effective 
benefits that may include private medical insurance, 
car allowance, employee benefits insurance and the 
reimbursement of certain travel costs. There are no 
performance criteria associated with receiving these benefits.

All our UK employees, over 500, have been offered both 
private medical insurance and group life assurance. Our 
benefits provider commented that the uptake of this offering 
from our employees was unprecedented, with many adding 
family members. 

SigmaRoc has also engaged Link Group to set up a share 
incentive plan for all UK employees, an offering we already have 
in the Channel Islands. Under the terms of the SIP, each eligible 
employee can contribute from salary to purchase Ordinary 
Shares. We are continuing to investigate share plans for our 
European operations.

Non-Executive Directors

Non-executive directors each receive a market rate basic fee, 
subject to time commitment requirements, for holding the office 
of non-executive director which is set by the Board as a whole.

Non-executive directors do not participate in any incentive 
scheme, share scheme or pension arrangement (except for 
minimum statutory requirements), but may be eligible to receive 
benefits such as the use of secretarial support, travel costs or 
other benefits that may be appropriate.

Service agreements / letters of 
appointment of Directors and loss  
of office 
Each of the directors has a service agreement or letter of 
appointment with the Company as follows:

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Director 

Date joined 

Notice 
Director 

Notice 
Company 

22 August 2016

12 months

12 months

22 August 2016

12 months

12 months

director’s experience and knowledge which can benefit 
SigmaRoc. Subject to approval by the Board, executive 
directors are allowed to accept non-executive appointments, 
provided that these appointments are not likely to lead to 
conflicts of interest, and the Committee will consider its 
approach to the treatment of any fees received by executive 
directors in respect of non-executive roles as they arise.

5 January 2017

6 months

6 months

Consideration of Shareholders’ views

David  
Barrett 

Max 
Vermorken 

Garth  
Palmer 

Tim  
Hall 

Simon 
Chisholm 

Jacques 
Emsens 

Axelle  
Henry

18 April 2019

6 months

6 months

20 April 2020

6 months

6 months

20 April 2020

6 months

6 months

26 April 2022

6 months

6 months

When it comes to payments and loss of office, the Board will 
always look to act in the Shareholders’ interest.

Notice periods and payments in lieu  
of notice 

The maximum notice period for executive directors is 
12 months, however the Committee retains the right to 
terminate an executive director’s service agreement by 
making a payment in lieu of notice. The payment will include 
salary, cost of benefits and loss of pension provision for the 
notice period (or the unexpired portion of it).

Annual bonus

The payment of a bonus for the year in which the executive 
director leaves is determined by the Remuneration 
Committee, taking into consideration their contribution up 
to the leaving date and normal pro-rating for time in service 
during the year.

Other payments

In appropriate circumstances, other payments may also 
be made, such as in respect of accrued holiday and 
outplacement and legal fees. 

Recruitment policy

The Remuneration Committee will seek to ensure that when 
appointing a new executive director, their remuneration 
arrangements are in the best interests of the Company, and 
not more than is appropriate. The Committee will determine 
a new executive director’s remuneration package in line with 
the policy set out above, however discretionary awards may 
be made in appropriate circumstances, such as: 

 – An interim appointment to fill a role on a short-term basis;

 – Provide relocation, travel and subsistence payments;

 – Reflect remuneration arrangements provided by a previous 

employer; and

 – Reimbursement of costs incurred as a consequence of 

resigning from their previous employment.

External appointments for executive 
directors

The Company recognises that its executive directors may 
be invited to become non-executive directors of other 
companies. Such non-executive duties can broaden a 

The Committee is committed to an ongoing dialogue 
with Shareholders and welcomes feedback on directors’ 
remuneration. The Committee seeks to engage directly 
with major Shareholders and their representative bodies 
on changes to the policy. The Committee will also 
consider Shareholder feedback received in relation to the 
remuneration-related resolution to be put forward at this 
year’s AGM. This, together with any additional feedback 
received from time to time (including any updates to 
Shareholders’ remuneration guidelines), is then considered 
as part of the Committee’s annual review of remuneration 
policy and its implementation.

In its 2021 review of executive remuneration the Committee 
conducted a comprehensive consultation exercise which 
elicited feedback from the Company’s largest Shareholders. 
The Committee was very grateful for the views received. 
The feedback, which was largely positive, was used 
constructively to shape our remuneration arrangements.

Consideration of employment conditions across the Group

The Committee closely monitors the pay and conditions 
of the wider workforce, and the design of the directors’ 
remuneration policy is informed by the policy for employees 
across the Group.

While employees are not formally consulted on the design 
of the directors’ remuneration policy, the Board will receive 
views through our designated workforce representative on a 
variety of areas including pay.

Differences in pay policy for executive 
directors compared to employees

As for the executive directors, general practice across the 
Group is to recruit employees at competitive market levels 
of remuneration, incentives, and benefits to attract and 
retain employees, accounting for national and regional talent 
pools. When considering salary increases for directors, 
the Committee considers salary increases and pay and 
employment conditions across the wider workforce. The 
pension contribution for executive directors is consistent with 
that for the general workforce. Senior employees can earn 
annual bonuses for delivering exceptional performance, with 
corporate performance measures aligned to those set for the 
executive directors. All UK based employees, including the 
executive directors, have the opportunity to participate in the 
tax-approved share incentive plans.

There are some differences in the structure of the 
remuneration policy for the executive directors compared 
to that for other employees within the organisation, which 
the Committee believes are necessary to reflect the differing 
levels of seniority and responsibility. At senior levels, 
remuneration is increasingly long-term, and ‘at risk’ with an 
increased emphasis on performance-related pay and share- 
based remuneration. This ensures the remuneration of the 
executives is aligned with both the long-term performance of 
the Company and the interests of Shareholders.

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GOVERNANCE REPORT 
Remuneration Committee report 

 Annual Report on remuneration 

The remuneration of the executive directors for the year ended 31 December 2022 was as shown in the table below:

Executive Directors

David Barrett 

Max Vermorken

Garth Palmer

31 December 2022

Directors’ 
fees 
£’000

Bonus 
£’000

Taxable 
benefits 
£’000

Pension 
benefits 
£’000

Options 
issued (2) 
£’000

375

475

375

469

594

469

1,225

1,532

15

15

15

45

-

60

40

100

-

-

-
-

The remuneration of the executive directors for the year ended 31 December 2021 was as shown in the table below: 

Executive Directors

David Barrett 

Dean Masefield1
Max Vermorken

Garth Palmer

Directors’ 
fees 
£’000

Bonus 
£’000

Taxable 
benefits 
£’000

Pension 
benefits 
£’000

Options 
issued2 
£’000

358

120

456

151

469

-

594

180

1,085

1,243

14

6

14

5

39

-

8

30

13

51

61

-

129

52

242

Total 
£’000

859

1,144

899

2,902

Total 
£’000

902

134

1,223

401

2,660

1  Dean Masefield was CFO until 31 August 2021 when he stepped down from his Board position and became the Deputy CFO of the Group. 
Garth Palmer transitioned from Non-Executive Director to Executive Director and CFO of the Group on this date.
2 Options issued relate to options granted in the 2019 financial year and vesting in the 2021 financial year.

Annual bonus for 2022

The annual bonus opportunity for each executive director 
was 125% of base salary (pro-rated for service). The 2022 
annual bonus was based on the achievement of stretching 
Underlying EPS targets for 75% with the remaining 25% 
based on corporate objectives.

Underlying EPS (75% of the total bonus)

Threshold 
level of 
Underlying 
EPS

Maximum 
level of 
Underlying 
EPS

Actual 
level of 
Underlying 
EPS

Bonus 
earned 
(percentage 
of max)

7.0p

7.7p

8.0p

100.0%

Reflecting the strong financial performance of the Group in 
a challenging year, the earnings outcome for the year was 
ahead of the maximum EPS target of 7.7p. As a result, 
the EPS measure was achieved in full. Based on a bonus 
opportunity of 125% of base salary, and a 75% weighting 
against the EPS condition, performance against this measure 
delivered a bonus outcome of 93.75% of base salary.

Corporate objectives (25% of the  
total bonus)

The following corporate objectives were set for the 
executive directors at the outset of 2022:

a.   delivering a net-zero roadmap and maiden ESG report, 
which the Company duly published in April 2022; and

b.   following the acquisition of Johnston, which pushed the 
Group above its 2.0x self-imposed leverage target, to 
end the year with an Adjusted Leverage Ratio of 2.0x or 
below, and which was likewise achieved with the Group 
reported an Adjusted Leverage Ratio of 1.93x

The 25% of the overall bonus pertaining to corporate 
objectives was therefore achieved in full in 2022.

Overall, the bonus outcome for the year, taking into 
account financial performance and the delivery of corporate 
objectives, was 100% of the maximum.

The overall bonus for the period in service as a director was 
as follows:

David Barrett – 125% of base salary
Max Vermorken – 125% of base salary
Garth Palmer – 125% of base salary

The Remuneration Committee believes these outcomes 
fairly reflect the performance of the business over the 2022 
financial year.

Performance Share Plan

The LTIP was granted under the PSP in October 2021, with 
awards vesting subject to a performance condition based 
on Underlying EPS growth for the year ending 31 December 
2023 and TSR over a three year period relative to the AIM 
100 index.

The Remuneration Committee met to consider the 
performance of the executive management team in relation 
to the performance conditions set within the LTIP and to 
assess progress in the year 2022. The Committee has 
concluded that the management team has delivered above 
expected performance in relation to the EPS performance 
condition as defined in the LTIP. Additionally, the Committee 
notes that the management team has outperformed against 
expectations on other long term financial and operational 
targets, as announced with the Nordkalk acquisition. These 
conclusions are based on the following considerations:

 – Underlying EPS of 8.03p, up from 5.4p per share in 2021 

and 4.5p per share in 2020;

 – Adjusted Leverage Ratio below 2x EBITDA;

 – Underlying EBITDA margin of 19% and Net Margin of 

22%, both up on the prior year;

 – CCR of 85%, up on the prior year and on target to reach 

95% in the mid-term; and

 – ROIC of 11%, up from 8% in 2021 and on track to reach 
the 15% mid-term target, absent of further acquisition 
work.

The Remuneration Committee considered the conditions 
under which these targets were achieved and noted the 
following exceptional circumstances:

 – Severe national strike of the paper industry in Finland, 

lasting over four months, shutting down all paper 
production in the country, and directly impacting one 
of the major revenue streams of the Group with a net 

negative impact of over £4 million EBITDA. 

 – Breakdown of customer production facilities through 
catastrophic failure, shutting down one key customer. 

 – Invasion of Ukraine by Russia, leading to:

-   loss of both Russian and Ukrainian exports and loss of 

Russian subsidiary; and

-   unprecedented energy crisis and fuel availability crisis 

across the footprint of the business.

 – Unprecedented inflationary pressures, over 20% in certain 
countries of operations, leading to customer capacity 
shutdowns and production stops.

 – Availability issues with respect to spare parts and 
components due to supply chain issues globally.

 – Sharp rise in interest rates across the operational region 
in the face of the aforementioned inflationary pressures.

Irrespective of these challenges the executive management 
team was able to exceed the Underlying EPS performance 
condition set under the LTIP, reaching 8.03p for the year 
2022. As a result of this performance, and given none of the 
conditions listed above were expected when the LTIP was 
proposed, the Remuneration Committee considers the EPS 
performance condition of the LTIP as satisfied for the year 
ended 31 December 2022. The Remuneration Committee 
reserves its discretion to review this decision prior to any vesting 
of awards and will take into consideration the performance of 
the Group for the year ending 31 December 2023.

Prior to reaching this conclusion, the Remuneration 
Committee undertook a process of Shareholder 
consultation and received broad support. 

No PSP awards were granted in 2022.

Share Incentive Plan

During 2022, the SIP trustee purchased (using the cash 
contributions made by employees) a total of 104,302 
Ordinary Shares at an average price of 65 pence per share. 
Of these, the CEO and CTO purchased a total of 1,384 
Ordinary Shares at an average price of 88 pence per share.

Beneficial interests
Beneficial interests of directors, their families and trusts in ordinary shares of the Company at 31 December 2022 were:

David Barrett

Max Vermorken

Garth Palmer 

Tim Hall

Simon Chisholm

Jacques Emsens

Axelle Henry

Ordinary Shares

Vested options Unvested options 

3,053,439

5,638,674

4,688,460

759,231

616,146

400,176

-

-

-

11,807,349

11,221,560

3,326,014

750,000

-

-

-

3,919,860

-

-

-

-

Ordinary Shares 
as % of salary

Holding  
guideline met?

453%

89%

91%

n/a

n/a

n/a

n/a

Yes

Yes

Yes

n/a

n/a

n/a

n/a

During the year the Committee introduced a new minimum shareholding guideline for executive directors, whereby they are 
expected to build and maintain a shareholding equivalent to 75% of their base salary. Current holdings of Ordinary Shares by 
the executive directors represent cash investments made by them into the Company and no Ordinary Shares that they currently 
hold have been granted to them by the Company in connection with their employment. When that changes the Committee will 
reassess the minimum shareholding guideline and revise accordingly.

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GOVERNANCE REPORT 
Remuneration Committee report 

CEO remuneration

The total remuneration figures, including annual bonus and vested PSP awards (shown as a percentage of the maximum that 
could have been achieved) for the CEO for each of the last five financial years are shown in the table below.

Year

2022

2021

2020

2019

2018

CEO

Max Vermorken

Max Vermorken

Max Vermorken

Max Vermorken

Max Vermorken

CEO total 
remuneration  
£ '000

Annual bonus 
pay-out against 
maximum 

opportunity % PSP vesting rates %

1,148

1,223

938

689

289

100.0

100.0

77.01

100.0

0.02

n/a

n/a

n/a

n/a

n/a

1  Entitled to 100% but voluntarily offered to reduce due to COVID pandemic while achieving Group targets set prior to COVID pandemic.
2 Management opted to defer any bonus discussions for the years 2016, 2017, 2018 while achieving all targets. 

Implementation of policy in 2023

Non-Executive Directors’ Fees 

GOVERNANCE REPORT 
Nomination Committee report

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Base salaries

Current base salaries for executive directors were estab-
lished as part of the Committee review in 2021.

The Committee carefully considered base salaries for exec-
utive directors during 2022. Despite the high levels of infla-
tion seen throughout the year, the Committee has decided 
not to make any changes to the base salaries of executive 
directors at this time.

The Committee recognises the challenges posed by infla-
tion but believes that it is important to maintain stability in 
the salaries of executive directors, particularly during uncer-
tain economic times. In 2023, the Committee will con-
duct a review of the base salaries of executive directors, 
considering macroeconomic developments, the individual 
performance and contributions of each executive director, 
as well as market trends and industry benchmarks. The 
Committee will determine whether any changes to base 
salaries are appropriate and will make recommendations to 
the Board accordingly.

The Committee also undertook a review of salaries across 
the broader Group toward the end of 2022 to ensure they 
remain commensurate, particularly given recent global infla-
tionary trends and in particular cost of living pressure from 
energy prices. Inflation rates by country, across multiple 
reference dates, were compared to recent and proposed 
changes to Group workforce salaries and wages. While 
severity of, and responses to, cost-of-living increases varied 
by country across the Group, the Committee was satisfied 
that the changes implemented to date, and where applica-
ble, those that were proposed, were fair and reasonable.

The basic fee for the non-executive directors for 2022  
was £50,000. No changes were proposed for NED fees 
but will be reviewed in conjunction with executive directors 
during 2023.

Annual bonus

For 2023, the executive directors will have the opportunity 
to earn a bonus of up to 125% of their base salary. The 
bonus will be subject to stretching performance conditions 
based on Underlying EPS (75%) and corporate objec-
tives (25%). The performance targets contain confidential 
information and so are not disclosed on a prospective 
basis. The Committee propose to disclose the targets, and 
performance against them, retrospectively as was the case 
in 2022.

PSP awards

The Committee does not expect to grant any further awards 
under the PSP in 2023, however 2023 will be the year in 
which the Committee determines satisfaction of the EPS 
target vesting performance conditions for the LTIP awards.

The Nomination Committee keeps the leadership of the 
Group under review, and ensures the Board is able to 
govern effectively now and in the future. 

Key activities carried out in 2022 

With the acquisition of Nordkalk in Q3 of 2021 the 
Nomination Committee considered the appropriate board 
composition for the Group and concluded that three 
executive directors supported by four independent NEDs 
would provide the right level of governance and oversight. 
The Nomination Committee thereafter conducted a search 
for an additional NED, identifying Ms Axelle Henry as a 
strong potential candidate, securing her appointment in 
April 2022.

Committee Duties 

The duties of the Nomination Committee are as follows: 

 –     To be responsible for identifying and nominating for the 

approval of the Board, candidates to fill Board vacancies 
as and when they arise; 

 –     Regularly review the structure, size and composition 

(including the skills, knowledge and experience) required 
of the Board compared to its current position and make 
recommendations to the Board with regard to any 
changes; 

 –     Keep under review the leadership needs of the 

organisation, both executive and non- executive, with a 
view to ensuring the continued ability of the organisation 
to compete effectively in the marketplace; 

 –     The Nomination Committee shall make recommendations 
to the Board as regards plans for succession for both 
executive and non-executive directors. 

Chair Statement 

It is a pleasure to be the Chairman of the Nomination 
Committee in a business that is exponentially growing. I 
look forward to supporting the Group in ensuring that we 
have the best executive and senior management teams in 
place that suit the strategy, business model and culture of 
SigmaRoc. 

This report was approved by the Board on 25 March 2023.

 –     Evaluate the balance of skills, knowledge and experience 

This report was approved by the Board on 25 March 2023.

Simon Chisholm 
Non-Executive Director 
25 March 2023  

on the Board; 

 –     Keep up to date and fully informed about strategic issues 
and commercial changes affecting the Group and the 
market in which it operates; 

 –     Give full consideration to succession planning for both 
executive and non-executive directors and other senior 
management in the course of its work, taking into 
account the challenges and opportunities facing the 
Company and what skills and expertise are therefore 
needed on the Board in the future; 

Simon Chisholm 
Non-Executive Director 
25 March 2023  

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GOVERNANCE REPORT 
Directors report

The Directors present their report, together with the 
audited Financial Statements, for the year ended 31 
December 2022.

Principal Activities 

The principal activity of the Company is to make investments 
and/or acquire businesses and assets in the construction 
and industrial quarried materials sectors. The principal 
activity of the Group is the production of high-quality 
aggregates and supply of value-added quarried materials.

Board composition and head office
The Board comprises three Executive Directors and four 
Non-Executive Directors at year end. The Corporate Head 
Office of the Company is located in London, UK.

Risk Management

The Board is responsible for the Group’s risk management 
and continues to develop policies and procedures that 
reflect the nature and scale of the Group’s business. Further 
details of the key areas of risk to the business identified by 
the Group are included on pages 88 to 92.

Details of the Group’s financial risk management policies are 
set out in Note 3 to the Financial Statements.

Results and Dividends 

For the year to 31 December 2022, the Group’s Underlying 
profit before tax was £62.7 million (2021: £26.8 million) and 
Underlying profit after tax was £53.6 million (2021: £22.1 
million). Recognising the Group’s strategy and current 
position on its journey, the Directors are not proposing to 
adopt a dividend policy yet. 

Stated Capital 

Details of the Company’s shares in issue are set out in Note 
28 to the Financial Statements. 

Directors 

The following Directors served during the year: 

Director

Position

David Barrett

Chairman

Max Vermorken

Chief Executive Officer

Garth Palmer 

Chief Financial Officer

Tim Hall

Independent Non-Executive Director

Simon Chisholm

Independent Non-Executive Director

Jacques Emsens

Independent Non-Executive Director

Axelle Henry1

Independent Non-Executive Director

1 Appointed on 26 April 2022

Directors & Directors’ interests

The Directors who served during the year ended 31 December 2022 are shown below and had, at that time, the following 
beneficial interests in the shares of the Company:

Max Vermorken

David Barrett

Garth Palmer 

Tim Hall

Simon Chisholm

Jacques Emsens

Axelle Henry

31 December 2022

31 December 2021

Ordinary Shares

Options Ordinary Shares

Options

759,231

11,807,349

674,150

11,807,349

3,053,439

5,638,674

3,009,189

5,638,674

616,146

400,176

3,326,014

750,000

556,146

400,176

3,326,014

750,000

-

-

-

-

-

-

-

-

-

-

-

-

Further details on options can be found in Note 29 to the Financial Statements.

Details on the remuneration of the Directors can be found in Note 10 to the Financial Statements.

Substantial Shareholdings 

The Company is aware that, as at 25 March 2023, other than the Directors, the interests of Shareholders holding three% or 
more of the issued share capital of the Company were as shown in the table below:

Shareholder

Blackrock Investment Mgt (UK)

Rettig Group

M&G Investment Management

Chelverton Asset Management

BGF Investment LP

Janus Henderson Investors

Polar Capital

Canaccord Genuity Wealth Management

Lombard Odier

Slater Investments

Inheritance tax

Shares in AIM listed trading companies or a holding 
company of a trading group may, after a 2 year holding 
period, qualify for Business Property Relief for United 
Kingdom inheritance tax purposes, subject to the detailed 
conditions for the relief. 

Investors should note that Business Property Relief would 
cease to be available in the event that the Company’s 
shares were to become listed on a HMRC designated stock 
exchange, for example the Main Market of the London 
Stock Exchange.

Employees 

By being responsible for their own businesses, that are 
aligned with the overall Group’s strategy, employees are fully 
aware of their impact and contribution as they are inherently 
responsible for their own success. The Group and each 
business is committed to employing the best they can, not 
only in skills and competence but also in their softer skills, 
regardless of who they are or where they have come from. 
Once engaged, each employee is nurtured and developed 
locally with opportunities within each business and platform 
offered openly. 

Political Contribution

The Group did not make any contributions to political 
parties during either the current or the previous year.

Annual General Meeting 

The AGM will be held at the Washington Mayfair Hotel, 
5 Curzon St, London W1J 5HE on 25 April at 3pm. The 
formal notice convening the AGM, together with explanatory 
notes on the resolutions contained therein, is included in 

Shares held

Percentage of holdings

63,581,543

50,276,521

49,100,079

47,286,417

46,105,973

45,190,500

39,511,584

37,833,884

32,685,177

28,282,422

9.16%

7.25%

7.08%

6.82%

6.65%

6.51%

5.69%

5.45%

4.71%

4.08%

the separate circular accompanying this document and is 
available on the Company’s website at www.sigmaroc.com.

Viability Statement 

The Directors have assessed the viability of the Group over 
a period to December 2027. This is the same period over 
which financial projections were prepared for the Group’s 
strategic financial plan. In making their assessment the 
Directors have taken into account the Group’s current 
position and the potential impact of the principal risks and 
uncertainties set out on pages 88 to 92 on its business 
model, future performance, solvency or liquidity. They  
also stress tested their analysis by running a number 
of credible scenarios and considered the availability 
of mitigating actions. Based on this assessment, the 
Directors confirm that they have a reasonable expectation 
that the Group will be able to continue in operation and 
meet its liabilities as they fall due over the period to 31 
December 2023. In making this statement, the Directors 
have assumed that financing remains available and that 
mitigating actions are effective. 

Corporate responsibility

Environmental 

SigmaRoc undertakes its activities in a manner that 
minimises or eliminates negative environmental impacts and 
maximises positive impacts of an environmental nature.

Health and safety

SigmaRoc operates a comprehensive health and safety 
programme to ensure the wellness and security of its 
employees. The control and eventual elimination of all work 
related hazards requires a dedicated team effort involving 
the active participation of all employees. A comprehensive 

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Policy and practice on payment of 
creditors

The Group agrees terms and conditions for its business 
transactions with suppliers. Payment is then made in 
accordance with these terms, subject to the terms and 
conditions being met by the supplier. As at 31 December 
2022, the Company had an average of 54 days (2021:  
58 days) purchases outstanding in trade payables and the 
Group had an average of 58 days (2021: 91 days).

Future developments

Details of future developments for the Group are disclosed 
in the Chairman’s Statement on page 10 and the CEO’s 
Strategic Report on page 14.

Provision of information to Auditor

So far as each of the Directors is aware at the time this 
report is approved:

 –     there is no relevant audit information of which the Group’s 

auditor is unaware; and

 –     the Directors have taken all steps that they ought to have 
taken to make themselves aware of any relevant audit 
information and to establish that the auditor is aware of 
that information.

Auditor

PKF Littlejohn LLP has signified its willingness to continue in 
office as auditor.

This report was approved by the Board on 25 March 2023.

Garth Palmer 
Chief Financial Officer 
25 March 2023

GOVERNANCE REPORT 
Directors report 

health and safety programme is the primary means for 
delivering best practices in health and safety management. 
This programme is regularly updated to incorporate 
employee suggestions, lessons learned from past incidents 
and new guidelines related to new projects, with the aim 
of identifying areas for further improvement of health and 
safety management. This results in continuous improvement 
of the health and safety programme. Employee involvement 
is regarded as fundamental in recognising and reporting 
unsafe conditions and avoiding events that may result in 
injuries and accidents. 

Internal controls

The Board recognises the importance of both financial and 
non-financial controls and has reviewed the Group’s control 
environment and any related shortfalls during the year. Since 
the Group was established, the Directors are satisfied that, 
given the current size and activities of the Group, adequate 
internal controls have been implemented. Whilst they are 
aware that no system can provide absolute assurance 
against material misstatement or loss, in light of the current 
activity and proposed future development of the Group, 
continuing reviews of internal controls will be undertaken to 
ensure that they are adequate and effective.

Further details of corporate governance can be found in the 
Corporate Governance Report on page 126.

Going concern

The Group meets its day-to-day working capital and other 
funding requirements through cash and banking facilities, 
which were renewed in July 2021 and of which more 
information can be found on page 86.

The Directors have a reasonable expectation that the Group 
has adequate resources to continue in operational existence 
for the foreseeable future and, therefore, continue to adopt 
the going concern basis in preparing the Annual Report and 
Financial Statements. Further details on their assumptions 
and their conclusion thereon are included in the statement 
on going concern included in Note 2.3 to the Financial 
Statements.

Prior year restatement

During the year, the prior year accounting treatment of the 
PPA on acquisitions has been revisited. The fair value uplift 
on assets acquired as part of the PPA exercise should 
have resulted in a deferred tax liability being recognised 
in accordance with IAS and IFRS. As a result, a prior year 
restatement to include deferred tax has been reflected 
within the financial statements. See Note 39 for details of 
the impact on the financial statement.

Directors’ and officers’ indemnity insurance

The Company has made qualifying third-party indemnity 
provisions for the benefit of its Directors and officers. These 
were made during the year and remain in force at the date 
of this Annual Report.

Events after the reporting period

Events after the reporting period are set out in Note 38 to 
the Financial Statements.

GOVERNANCE REPORT 
Statement of Directors’ responsibilities

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The Directors are responsible for preparing the Annual 
Report and the Financial Statements in accordance with 
applicable law and regulations, including the AIM Rules  
for Companies.

Company law requires the Directors to prepare financial 
statements for each financial year. Under that law the 
Directors have elected to prepare the Group and Company 
Financial Statements in accordance with UK-adopted 
International Accounting Standards (UK-adopted IAS) in 
conformity with the requirements of the Companies Act 
2006. Under company law the Directors must not approve 
the Financial Statements unless they are satisfied that they 
give a true and fair view of the state of affairs of the Group 
and Company, and of the profit or loss of the Group for 
that period. In preparing these Financial Statements, the 
Directors are required to:

 –     select suitable accounting policies and then apply them 

consistently;

The Directors are responsible for keeping adequate 
accounting records that are sufficient to show and explain 
the Group’s and Company’s transactions and disclose 
with reasonable accuracy at any time the financial position 
of the Group and Company, and enable them to ensure 
that the Financial Statements comply with the Companies 
Act 2006. They are also responsible for safeguarding the 
assets of the Group and Company, and hence for taking 
reasonable steps for the prevention and detection of fraud 
and other irregularities.

The Directors are responsible for the maintenance and 
integrity of the corporate and financial information included 
on the Company’s website, www.sigmaroc.com. Legislation 
in the United Kingdom governing the preparation and 
dissemination of the Financial Statements may differ from 
legislation in other jurisdictions. 

The Company is compliant with AIM Rule 26 regarding the 
Company’s website.

 –     make judgments and accounting estimates that are 

reasonable and prudent; 

The Directors confirm that they have complied with the 
above requirements in preparing the Financial Statements.

 –     state whether applicable UK-adopted IAS in conformity 

with the requirements of the Companies Act 2006 
have been followed, subject to any material departures 
disclosed and explained in the financial statements; and

 –     prepare the financial statements on the going concern 

basis unless it is inappropriate to presume that the Group 
will continue in business.

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GOVERNANCE REPORT 
Independent Auditor’s report to the members of 
SigmaRoc plc

Opinion 

We have audited the financial statements of SigmaRoc plc 
(the ‘Parent Company’) and its subsidiaries (the ‘Group’) 
for the year ended 31 December 2022 which comprise 
the Consolidated Income Statement, the Consolidated 
Statement of Comprehensive Income, the Consolidated 
and Parent Company Statements of Financial Position, the 
Consolidated and Parent Company Statement of Changes 
in Equity, the Consolidated and Parent Company Cash Flow 
Statements and notes to the financial statements, including 
significant accounting policies. The financial reporting 
framework that has been applied in their preparation is 
applicable law and UK-adopted international accounting 
standards and as regards the parent company financial 
statements, as applied in conformity with the requirements 
of the Companies Act 2006. 

In our opinion: 
 – the financial statements give a true and fair view of the state 
of the Group’s and of the Parent Company’s affairs as at 
31 December 2022 and of the Group’s profit and Parent 
Company’s loss for the year then ended; 

 – the Group financial statements have been properly 

prepared in accordance with UK-adopted international 
accounting standards;

 – the Parent Company financial statements have been 
properly prepared in accordance with UK-adopted 
international accounting standards and as applied in 
accordance with the provisions of the Companies Act 
2006; and

 – the financial statements have been prepared in accordance 

with the requirements of the Companies Act 2006. 

Basis for opinion 

We conducted our audit in accordance with International 
Standards on Auditing (UK) (ISAs (UK)) and applicable 
law. Our responsibilities under those standards are further 
described in the Auditor’s responsibilities for the audit of the 
financial statements section of our report. We are independent 
of the Group and Parent Company in accordance with the 
ethical requirements that are relevant to our audit of the 
financial statements in the UK, including the FRC’s Ethical 
Standard as applied to listed entities, and we have fulfilled 
our other ethical responsibilities in accordance with these 
requirements. We believe that the audit evidence we have 
obtained is sufficient and appropriate to provide a basis for 
our opinion. 

 – Ensuring the mathematical accuracy of the cash flow 

forecasts;

 – Comparing actual results for the year to forecasts to assess 

the forecasting ability and accuracy of management;

 – Holding discussions with management to understand the 
cash flow forecasts including the key inputs used and 
sources of these inputs;

 – Challenging management on the appropriateness of key 

assumptions and judgements used; 

 – Identifying events subsequent to the year-end, which would 
be expected to impact the Group and Parent Company 
and hence the directors' assessment of going concern, and 
challenging management thereon to ensure that they had 
been factored into management’s assessment; and

 – Considering the inherent risks to the business model and 
performing an analysis of how those risks might affect the 
financial resources or ability to continue operations over the 
going concern period.

The risks that we considered most likely to affect the financial 
resources or ability to continue operations over this period 
were:

 – adverse circumstances impacting timely conversion of trade 

receivables to cash;

 – industrial action reducing production volumes; 

 – the ability of the Group and Parent Company to comply 

with debt covenants;

 – rising inflation impacting expenditures, cost of sales and 

operating cashflows; and

 – failure to achieve required revenue growth. 

We considered these risks through a review of the application 
of reasonably foreseeable downside scenarios. We found the 
going concern disclosure in Note 2.3 to be appropriate as it 
gives a reasonable description of the assessment of going 
concern supported by the underlying cashflow forecasts 
reviewed as part of our work in this area.

Based on the work we have performed, we have not identified 
any material uncertainties relating to events or conditions that, 
individually or collectively, may cast significant doubt on the 
Group's or Parent Company’s ability to continue as a going 
concern for a period of at least twelve months from when the 
financial statements are authorised for issue.

Our responsibilities and the responsibilities of the directors 
with respect to going concern are described in the relevant 
sections of this report.

Conclusions relating to going concern 

Our application of materiality 

In auditing the financial statements, we have concluded that 
the directors’ use of the going concern basis of accounting 
in the preparation of the financial statements is appropriate. 
Our evaluation of the directors’ assessment of the Group’s 
and Parent Company’s ability to continue to adopt the going 
concern basis of accounting included:
 – Obtaining management’s cash flow forecasts for the going 

concern period being twelve months from the date of 
signing the financial statements;

The scope of our audit was influenced by our application 
of materiality. We set certain quantitative thresholds for 
materiality. These, together with qualitative considerations, 
helped us to determine the scope of our audit and the 
nature, timing and extent of our audit procedures on the 
individual financial statement line items and disclosures and in 
evaluating the effect of misstatements, both individually and in 
aggregate, on the financial statements as a whole.

Group financial statements

Parent Company financial statements

Materiality for the financial 
statements as a whole

£5.20 million

(2021: £2.72 million)

Basis of materiality

0.97% of turnover 

£3.00 million

(2021: £1.45 million)

0.86% of net assets 

Rationale Benchmark

We considered revenue to be the most relevant 
performance indicator of the Group as it is a 
significant driver of profit or loss for the year.

The Parent Company operates primarily as 
a holding company which holds the main 
debt facility for the Group and as such, we 
consider net assets as the key metric.

Rationale Percentage

The percentage applied to the benchmark has been selected to bring into scope all significant 
classes of transactions, account balances and disclosures relevant for the shareholders, and 
also to ensure that matters that would have a significant impact on the results were appropriately 
considered.

Performance materiality 
- 70% 

£3.64 million

(2021: £1.90 million)

£2.10 million

(2021: 1.02 million)

In determining performance materiality, we considered the following factors:
 – the number and quantum of identified misstatements in the prior year audit;
 – management’s attitude to correcting misstatements identified;
 – our cumulative knowledge of the Group and Parent Company and their environment, including 

industry specific trends;

 – the consistency in the level of judgement required in key accounting estimates;
 – the stability in key management personnel; and 
 – the level of centralisation in the Group’s financial reporting controls and processes.

We use performance materiality to reduce to an appropriately 
low level the probability that the aggregate of uncorrected 
and undetected misstatements exceeds overall materiality. 
Specifically, we use performance materiality in determining the 
scope of our audit and the nature and extent of our testing of 
account balances, classes of transactions and disclosures, for 
example in determining sample sizes.

For each significant component in the scope of our audit, 
we allocated a materiality based on the maximum aggregate 
component materiality. The range of materiality allocated 
across components was between £3.30 million and £2.00 
million. Materiality for material non-significant components 
of £2.86 million was calculated based on a percentage of 
Group revenue.

We agreed with the Audit Committee that we would report 
to them misstatements identified during our audit above 
£260,000 (2021: £136,000) as well as misstatements below 
those amounts that, in our view, warranted reporting for 
qualitative reasons.

Our approach to the audit

In designing our audit, we determined materiality, as above, 
and assessed the risk of material misstatement in the financial 
statements. In particular, we looked at areas involving 
significant accounting estimates and judgement by the 
directors and considered future events that are inherently 
uncertain. We note that the Group has made acquisitions 
of subsidiary undertakings and has performed a purchase 
price allocation during the year on the goodwill asset 
recognised in the prior year. Both of these areas are inherently 
complicated and require a significant amount of judgement 
by management. We also addressed the risk of management 
override of internal controls, including evaluating whether 
there was evidence of bias by management that represented 
a risk of material misstatement due to fraud.

We determined that of the 65 subsidiaries of the Group there 
were 32 components. A full scope audit was performed on 

the complete financial information of five components  
which were assessed as material and significant. 12 
components were considered material but not significant 
to which we performed audits of material balances using 
a materiality that is less than the materiality determined 
for the Group financial statements. For the remaining 
components not considered material, we performed a 
limited scope analytical review together with substantive 
testing, as appropriate, on Group audit risk areas applicable 
to those components based on their relative size, risks in 
the business and our knowledge of the entity appropriate to 
respond to the risk of material misstatement.

Of the five material and significant components, four were 
located in Finland, Sweden, Belgium and Poland. The 
components in these locations were audited by firms outside 
of the PKF network operating under our instruction. The 
remaining component audit was performed in London, 
conducted by PKF Littlejohn LLP using a team with specific 
experience of auditing mining companies and publicly listed 
entities. We interacted regularly with the component audit 
teams during all stages of the audit and we were responsible 
for the scope and direction of the audit process. This, in 
conjunction with additional procedures performed, gave us 
appropriate evidence for our opinion on the Group and Parent 
Company financial statements.

Key audit matters 

Key audit matters are those matters that, in our professional 
judgment, were of most significance in our audit of the 
financial statements of the current period and include the 
most significant assessed risks of material misstatement 
(whether or not due to fraud) we identified, including those 
which had the greatest effect on: the overall audit strategy, the 
allocation of resources in the audit; and directing the efforts of 
the engagement team. These matters were addressed in the 
context of our audit of the financial statements as a whole, 
and in forming our opinion thereon, and we do not provide a 
separate opinion on these matters.

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GOVERNANCE REPORT 
Independent Auditor’s report to the members of 
SigmaRoc plc 

Key Audit Matter

How our scope addressed this matter

Valuation and Allocation of Inventory (Group) 
(Note 2.10 and 21)

The Group holds £67.78 million of inventory 
in the Consolidated Statement of Financial 
Position at the year end. There is a risk that 
the carrying value of inventory is not in line 
with the requirements of IAS 2 Inventories 
and is thus materially misstated.

Specifically, there is a risk that inventory:  
 – has been valued using cost inputs and 

allocated overheads which are not wholly 
attributable to its production; and

 – has become obsolete, by way of damage 

or falling resalable value.  

Given the quantum of misstatement should 
the effect of these risks materialise, we 
determined that the valuation of inventory is 
a key audit matter.

Valuation and Allocation of Investments in 
subsidiary undertakings (Parent Company) 
(Note 2.2 and 18)

The Parent Company carries an “Investment 
in subsidiary undertakings” balance of over 
£583.42 million in its Statement of Financial 
Position.

There is a risk that the carrying value of the 
investments is greater than the recoverable 
amount and is therefore impaired.

We determined that the valuation of 
investments is a key audit matter as 
the estimated recoverable amount of 
investments is subjective due to the inherent 
uncertainty involved in forecasting and 
discounting future cashflows.

Our work in this area included:
 – Attending year-end inventory counts at a sample of sites to ensure existence 

and accuracy of inventory items and records;

 – Obtaining an inventory listing which reconciles to the inventory balance within 

the trial balance;

 – Reviewing movements in inventory from the inventory counts to the year end 
and reconciling a sample of the movements to purchases and sales invoices; 

 – Discussing with management their methodologies of valuing inventory to 

ensure these methodologies are consistent across the Group and are in line 
with IAS 2;

 – Reviewing purchase invoices and the cost absorption work papers on a 

sample of inventory items held at the year end to ensure that the valuations 
used are accurate;

 – Comparing the net realisable value (NRV) (e.g., the post year-end sales price) 
to the cost price on a sample of inventory items to ensure that inventory is 
valued at the lower of cost and NRV; and

 – Reviewing slow moving inventory items and assessing whether the provision 

for such items is complete.

We found managements processes and controls over the existence and 
completeness of inventory suitable. We are furthermore satisfied that the 
judgements made by management pertaining to the valuation and allocation of 
inventory are appropriate. 

Our work in this area included:

 – Obtaining the impairment models and assessment for each subsidiary and 

reviewing the models for reasonableness;

 – Assessing the mathematical accuracy of the models;

 – For all key assumptions and inputs to the impairment models: 

–  discussing their basis with management;

–   agreeing to supporting evidence and where possible, agreeing to third party 

data; 

–   recalculating the discount rate used;

 – Reviewing the value of the net investment in subsidiaries against the 

supporting underlying assets;

 – Assessing the historical forecasting accuracy, by comparing previous cash 

flow forecasts to actual results achieved;

 – Performing a sensitivity analysis on the key assumptions noted above; 

 – Considering the existence of impairment indicators per IAS 36 Impairment of 

Assets; and

 – Reviewing the associated disclosures in the financial statements and 

assessing the appropriateness of such disclosures.

We found management’s assessment of the carrying value of investments in 
subsidiary undertakings to be supported by the underlying models and the 
judgements and estimates applied reasonable.

Valuation and Allocation of Goodwill (Note 
2.6 and 17)

The Group carries a balance of over 
£173.83 million in goodwill relating to the 
acquisition of its subsidiary undertakings 
in the Consolidated Statement of Financial 
Position. Furthermore, subsequent to 
the acquisition of subsidiaries and the 
finalisation of the Purchase Price Allocation 
report (PPA), goodwill is allocated to other 
identifiable intangible assets with any 
remaining unallocated amount being left 
within goodwill.

In accordance with IAS 36, goodwill is 
not amortised. However, an impairment 
review should be undertaken annually, or 
more frequently, should events or changes 
in circumstances indicate a potential 
impairment. 

Goodwill is allocated to groups of cash 
generating units according to the level at 
which management monitors that goodwill, 
which is at the level of operating segments. 
As such, the impairment reviews are 
performed in conjunction with the respective 
investment reviews.

Given that the estimated recoverable amount 
of goodwill is subjective, there is a risk that 
the carrying value of goodwill is overstated. 
Should the effect of these risks materialise, 
the effect would be material and as such, we 
determined that the valuation of goodwill is a 
key audit matter.

Our work in this area included:

 – Using an auditor specialist to review the PPA and assess the key assumptions 

and inputs used to allocate the goodwill value to other intangible assets;

 – Obtaining the impairment models and assessment for each subsidiary and 

reviewing the models for reasonableness;

 – Assessing the mathematical accuracy of the models;

 – For all key assumptions and inputs to the impairment models: 

–  discussing their basis with management;

–   agreeing to supporting evidence and where possible, agreeing to third party 

data;

–  recalculating the discount rate used;

 – Reviewing the value of the net investment in subsidiaries against the 

supporting underlying assets;

 – Assessing the historical forecasting accuracy, by comparing previously 

forecast cash flows to actual results achieved;

 – Performing a sensitivity analysis on the key assumptions noted above; 

 – Considering the existence of impairment indicators per IAS 36 Impairment of 

Assets; and

 – Reviewing the associated disclosures in the financial statements and 

assessing the appropriateness of such disclosures. 

We found management’s assessment of the carrying value of goodwill to be 
supported by the underlying models and the judgements and estimates applied 
reasonable. 

Other information

The other information comprises the information included in 
the annual report, other than the financial statements and 
our auditor’s report thereon. The directors are responsible 
for the other information contained within the annual report. 
Our opinion on the Group and Parent Company financial 
statements does not cover the other information and, except 
to the extent otherwise explicitly stated in our report, we do 
not express any form of assurance conclusion thereon. Our 
responsibility is to read the other information and, in doing 
so, consider whether the other information is materially 
inconsistent with the financial statements or our knowledge 
obtained in the course of the audit, or otherwise appears 
to be materially misstated. If we identify such material 
inconsistencies or apparent material misstatements, we are 
required to determine whether this gives rise to a material 
misstatement in the financial statements themselves. If, based 
on the work we have performed, we conclude that there 
is a material misstatement of this other information, we are 
required to report that fact. 

We have nothing to report in this regard. 

Opinions on other matters prescribed by 
the Companies Act 2006 

In our opinion, based on the work undertaken in the course of 
the audit: 

 – the information given in the strategic report and the 

directors’ report for the financial year for which the financial 
statements are prepared is consistent with the financial 
statements; and 

 – the strategic report and the directors’ report have been 

prepared in accordance with applicable legal requirements. 

Matters on which we are required to 
report by exception 

In the light of the knowledge and understanding of the Group 
and the Parent Company and their environment obtained 
in the course of the audit, we have not identified material 
misstatements in the strategic report or the directors’ report.

We have nothing to report in respect of the following matters 
in relation to which the Companies Act 2006 requires us to 
report to you if, in our opinion: 

 – adequate accounting records have not been kept by the 

Parent Company, or returns adequate for our audit have not 
been received from branches not visited by us; or 
 – the Parent Company financial statements are not in 

agreement with the accounting records and returns; or 
 – certain disclosures of directors’ remuneration specified by 

law are not made; or 

 – we have not received all the information and explanations 

we require for our audit. 

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A further description of our responsibilities for the audit of 
the financial statements is located on the Financial Reporting 
Council’s website at: www.frc.org.uk/auditorsresponsibilities. 
This description forms part of our auditor’s report.

Use of our report

This report is made solely to the company’s members, as 
a body, in accordance with Chapter 3 of Part 16 of the 
Companies Act 2006. Our audit work has been undertaken 
so that we might state to the company’s members those 
matters we are required to state to them in an auditor’s report 
and for no other purpose. To the fullest extent permitted by 
law, we do not accept or assume responsibility to anyone, 
other than the company and the company's members as a 
body, for our audit work, for this report, or for the opinions we 
have formed.

Zahir Khaki (Senior Statutory Auditor)  
For and on behalf of PKF Littlejohn LLP 
Statutory Auditor 

15 Westferry Circus 
Canary Wharf 
London E14 4HD

25 March 2023

GOVERNANCE REPORT 
Independent Auditor’s report to the members of 
SigmaRoc plc 

Responsibilities of directors 

As explained more fully in the statement of directors’ 
responsibilities, the directors are responsible for the preparation 
of the Group and Parent Company financial statements and 
for being satisfied that they give a true and fair view, and for 
such internal control as the directors determine is necessary to 
enable the preparation of financial statements that are free from 
material misstatement, whether due to fraud or error.

In preparing the Group and Parent Company financial 
statements, the directors are responsible for assessing the 
Group and the Parent Company’s ability to continue as a going 
concern, disclosing, as applicable, matters related to going 
concern and using the going concern basis of accounting 
unless the directors either intend to liquidate the Group or the 
Parent Company or to cease operations, or have no realistic 
alternative but to do so.

Auditor’s responsibilities for the audit of 
the financial statements 
Our objectives are to obtain reasonable assurance about 
whether the financial statements as a whole are free from 
material misstatement, whether due to fraud or error, 
and to issue an auditor’s report that includes our opinion. 
Reasonable assurance is a high level of assurance but is 
not a guarantee that an audit conducted in accordance with 
ISAs (UK) will always detect a material misstatement when it 
exists. Misstatements can arise from fraud or error and are 
considered material if, individually or in the aggregate, they 
could reasonably be expected to influence the economic 
decisions of users taken on the basis of these financial 
statements. 

Irregularities, including fraud, are instances of non-compliance 
with laws and regulations. We design procedures in line 
with our responsibilities, outlined above, to detect material 
misstatements in respect of irregularities, including fraud. 
The extent to which our procedures are capable of detecting 
irregularities, including fraud is detailed below:

 – We obtained an understanding of the Group and Parent 

Company and the sector in which they operate to identify 
laws and regulations that could reasonably be expected 
to have a direct effect on the financial statements. 
We obtained our understanding in this regard through 
discussions with management, review of accident 
logbooks, application of cumulative audit knowledge and 
experience of the quarrying sector.

 – We determined the principal laws and regulations relevant to 
the Group and Parent Company in this regard to be those 
arising from the: 

–  Companies Act 2006;

–  UK-adopted international accounting standards;
–  Quoted Companies Alliance Code;

–   Local laws and regulations in the jurisdictions of the 

subsidiary entities;

–  AIM Rules;

–  Health and Safety Laws; and

–  Anti-bribery and anti-money laundering regulations.

 – We designed our audit procedures to ensure the audit 
team considered whether there were any indications of 
non-compliance by the Group and Parent Company with 
those laws and regulations. These procedures included, 
but were not limited to:

–   Holding discussions with management and the audit 
committee and considering any known or suspected 
instances of non-compliance with laws and regulations 
or fraud; 

–  Reviewing board meeting minutes;

–   Reviewing Regulatory News Service (RNS) 

announcements;

–   Ensuring adherence to the terms within the exploration 

permits, including environmental conditions; and

–  Reviewing legal and regulatory correspondence. 

 – We also identified the risks of material misstatement of 

the financial statements due to fraud. We considered, in 
addition to the non-rebuttable presumption of a risk of 
fraud arising from management override of controls, that 
the potential for management bias was identified in relation 
to the valuation of goodwill and investments (detailed in 
the key audit matters section of our report) as well as the 
valuation of the defined benefit obligations, including the 
key actuarial assumptions applied. We addressed this by 
challenging the assumptions and judgements made by 
management when auditing that significant accounting 
estimate and ensuring that there were adequate 
disclosures included in the respective notes including the 
disclosures within critical accounting estimates.

 – As in all of our audits, we addressed the risk of fraud 
arising from management override of controls by 
performing audit procedures which included, but were not 
limited to: the testing of journals; reviewing accounting 
estimates for evidence of bias; and evaluating the business 
rationale of any significant transactions that are unusual or 
outside the normal course of business.

 – As part of the Group audit, we have communicated with 
component auditors the fraud risks associated with the 
Group and the need for the component auditors to address 
the risk of fraud and any instances of non-compliance with 
laws and regulations in their testing. To ensure that this has 
been completed, we have reviewed component auditor 
working papers in this area and obtained responses to our 
Group instructions from the component auditors including 
their work and conclusions on compliance with laws and 
regulations.

Because of the inherent limitations of an audit, there is a risk 
that we will not detect all irregularities, including those leading 
to a material misstatement in the financial statements or 
non-compliance with regulation. This risk increases the more 
that compliance with a law or regulation is removed from the 
events and transactions reflected in the financial statements, 
as we will be less likely to become aware of instances of non-
compliance. The risk is also greater regarding irregularities 
occurring due to fraud rather than error, as fraud involves 
intentional concealment, forgery, collusion, omission or 
misrepresentation.

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FINANCIAL REPORT  
Consolidated income statement

FINANCIAL REPORT  
Consolidated statement of comprehensive income

Year ended 31 December 2022

Year ended 31 December 2021

Non-
underlying1 
(Note 11) 
£’000

Total 
£’000

Underlying 
£’000

-

-

-

537,993

271,987

(422,056)

(210,068)

115,937

61,919

Non-
underlying2 
(Note 11) 
£’000

Total 
£’000

-

-

-

271,987

(210,068)

61,919

Profit/(loss) for the year

Other comprehensive income:

Items that will or may be reclassified to profit or loss:

FX translation reserve

(19,126)

(65,270)

(31,792)

(25,734)

(57,526)

Cash flow hedges – effective portion of changes in fair value

Underlying 
£’000

537,993

(422,056)

115,937

(46,144)

Remeasurement of the net defined benefits liability

Other comprehensive income, net of tax

Total comprehensive income

Total comprehensive income attributable to:

Owners of the parent

Non-controlling interests

Total comprehensive income for the period

(8,910)

(1,528)

(10,438)

(5,317)

(1,682)

(6,999)

1,853

62,736

(9,142)

53,594

51,251

2,343

53,594

641

2,494

(20,013)

42,723

-

(9,142)

(20,013)

33,581

1,978

26,788

(4,699)

22,089

(1,644)

334

(29,060)

(2,272)

-

(4,699)

(29,060)

(6,971)

(20,013)

31,238

21,499

(29,060)

(7,561)

-

2,343

590

-

590

(20,013)

33,581

22,089

(29,060)

(6,971)

8.03

(3.14)

4.89

5.37

(7.26)

(1.89)

7.68

(3.00)

4.68

5.02

(6.79)

(1.77)

Continued operations

Note

7

8

8

12

13

15

Revenue

Cost of sales

Profit from operations

Administrative expenses

Net finance (expense)/
income

Other net gains / (losses)

Profit/(loss) before tax

Tax expense

Profit/(loss)

Profit/(loss) 
attributable to:

Owners of the parent

Non-controlling interest

31

Basic earnings per 
share attributable to 
owners of the parent 
(expressed in pence 
per share)

Diluted earnings per 
share attributable to 
owners of the parent 
(expressed in pence 
per share)

32

32

1, 2  Non-underlying items represent acquisition related expenses, restructuring costs, certain finance costs, share option expense and 

amortisation of acquired intangibles. See Note 11 for more information.

Year ended 
31 December 
2022 
£’000

Year ended 31 
December 2021 
£’000

33,581

(6,971)

Note

17,735

3,432

202

21,369

54,950

52,048

2,902

54,950

(15,806)

882

155

(14,769)

(21,740)

(22,343)

603

(21,740)

The Notes on pages 160-202 form part of these Financial Statements.

The Notes on pages 160-202 form part of these Financial Statements.

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FINANCIAL REPORT 

Statements of financial position 

COMPANY NUMBER: 05204176

Consolidated

Company

Note

31 December 
2022 
£’000

31 December
2021 
£’000

31 December 
2022 
£’000

31 December 
2021 
£’000

Non-current assets
Property, plant and equipment
Intangible assets
Investments in subsidiary undertakings

Investment in equity-accounted associate
Investment in joint ventures

Derivative financial asset
Other receivables
Deferred tax asset

Current assets
Trade and other receivables
Inventories
Cash and cash equivalents

Derivative financial asset

Total assets
Current liabilities
Trade and other payables

Derivative financial liabilities
Provisions
Borrowings
Current tax payable

Non-current liabilities
Borrowings

Employee benefit liabilities
Deferred tax liabilities

Derivative financial liabilities
Provisions
Other payables

Total liabilities
Net assets
Equity attributable to owners of the parent
Share capital
Share premium
Share option reserve
Other reserves
Retained earnings
Equity attributable to owners of the parent
Non-controlling interest 
Total equity

16
17
18
19
19
33
20
15

20
21
22
33

23
33
25
24

24

15

25
23

28
28
29
30

31

523,188
189,875

-
576
5,942
4,771
4,259
4,426
733,037

86,805
67,780
68,623
10,683
233,891
966,928

140,443
6,693
6,596
33,846
1,251
188,829

228,630
1,312
68,604
552
4,100
5,051
308,249
497,078
469,850

6,383
400,022
7,483
10,261
33,969
458,118
11,732
469,850

256,436
318,963

-
524
5,134
870
4,759
3,129
589,815

73,254
44,530
69,916
4,327
192,027
781,842

98,213
737
4,024
21,723
3,934
128,631

212,199
1,589
17,717

-
6,151
4,401
242,057
370,688
411,154

6,379
399,897
3,104
(11,236)
2,116
400,260
10,894
411,154

257

-
583,421

-
-
-
-
-
583,678

3,168

-
5,055

-
8,223
591,901

13,526

-
-
20,072

-
33,598

206,369

-
-
-
-
5,051
211,420
245,018
346,882

6,383
400,022
7,483
1,362
(68,368)
346,882
-
346,882

429

-
554,195

-
-
-
-
-
554,624

2,890

-
19,038
302
22,230
576,854

5,567

-
-
8,102

-
13,669

192,068

-
-
-
-
4,401
196,469
210,138
366,716

6,379
399,897
3,104
1,362
(44,026)
366,716
-
366,716

The Company has elected to take the exemption under Section 408 of the Companies Act 2006 from presenting the Company’s 
Income Statement and Statement of Comprehensive Income. The loss for the Company for the year ended 31 December 2022 was 
£24.4 million (year ended 31 December 2021: loss of £26.3 million). 

The Financial Statements were approved and authorised for issue by the Board of Directors on 25 March 2023 were signed on its behalf by:

Garth Palmer 
Chief Financial Officer 
25 March 2023 

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FINANCIAL REPORT  
Consolidated statement of changes in equity 

Share  
capital 
£’000

Share 
premium 
£’000

Note

Share 
option 
reserve 
£’000

Other 
reserves 
£’000

Retained 
earnings 
£’000

Total 
£’000

Non-
controlling 
interest 
£’000

Total 
£’000

2,787

107,418

847

3,293

9,218

123,563

-

123,563

Issue of share capital

3,089

258,996

Issue costs

28

-

(8,748)

Share based payments

503

42,231

2,322

-

-

-

-

(65)

-

3,592

292,479

2,257

Balance as at  
1 January 2021

Profit for the year

Currency translation 
differences

Other comprehensive 
income

Total comprehensive 
income for the period

Contributions by and 
distributions to owners

Acquired via acquisition

Exercise of share options

Other equity adjustments

Total contributions  
by and distributions  
to owners

Balance as at 31 
December 2021

Balance as at 1 January 
2022

Profit for the year

Currency translation 
differences

Other comprehensive 
income

Total comprehensive 
income for the period

Contributions by and 
distributions to owners

Acquired via acquisition

Issue of share capital

28

Share based payments

Exercise of share options

Dividends

Other equity adjustments

Total contributions  
by and distributions  
to owners

Balance as at 31 
December 2022

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

(7,561)

(7,561)

590

(6,971)

(15,819)

1,037

-

-

(15,819)

13

(15,806)

1,037

-

1,037

(14,782)

(7,561)

(22,343)

603

(21,740)

-

-

-

-

253

253

-

-

-

-

65

394

-

9,031

9,031

262,085

1,260

263,345

(8,748)

45,056

-

647

-

-

-

-

(8,748)

45,056

-

647

456

299,040

10,291

309,331

6,379

399,897

3,104

(11,236)

2,116

400,260

10,894

411,154

6,379

399,897

3,104

(11,236)

2,116

400,260

10,894

411,154

-

-

-

-

-

4

-

-

-

-

4

-

-

-

-

-

125

-

-

-

-

-

-

-

-

-

-

4,453

(74)

-

-

125

4,276

-

31,238

31,238

2,343

33,581

17,176

3,634

-

-

17,176

559

17,735

3,634

-

3,634

20,810

31,238

52,048

2,902

54,950

-

-

-

-

-

687

687

-

-

-

74

-

-

129

4,453

-

-

974

-

-

-

974

129

4,453

-

(3,038)

(3,038)

541

1,228

-

1,228

615

5,810

(2,064)

3,746

6,383

400,022

7,483

10,261

33,969

458,118

11,732

469,850

The Notes on pages 160-202 form part of these Financial Statements.

The Notes on pages 160-202 form part of these Financial Statements.

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FINANCIAL REPORT  
Company statement of changes in equity 

FINANCIAL REPORT  

Cash flow statements

(26,290)

(26,290)

(26,290)

(26,290)

Impairments

Share  
capital 
£’000

Share 
premium 
£’000

Note

Share 
option 
reserve 
£’000

Other 
reserves 
£’000

Retained 
earnings 
£’000

Total

Balance as at 1 January 2021

2,787

107,418

847

1,362

(17,801)

94,613

Profit/(Loss)

Total comprehensive  
income for the period

Contributions by and  
distributions to owners

Issue of share capital

-

-

-

-

3,089

258,996

Issue costs

28

-

(8,748)

Share based payments

Exercise of share options

Total contributions by and 
distributions to owners

503

42,231

-

-

3,592

292,479

Balance as at 31 December 2021

6,379

399,897

Balance as at 1 January 2022

6,379

399,897

Profit/(Loss)

Total comprehensive  
income for the period

Contributions by  
and distributions to owners

Issue of share capital

Issue costs

Share based payments

Exercise of share options

Total contributions by and 
distributions to owners

Balance as at  
31 December 2022

-

-

4

-

-

4

28

-

-

-

125

-

-

-

-

-

-

-

2,322

(65)

2,257

3,104

3,104

-

-

-

-

4,453

(74)

-

-

-

-

-

-

-

-

-

-

262,085

(8,748)

45,056

65

-

65

298,393

1,362

(44,026)

366,716

1,362

(44,026)

366,716

-

-

-

-

-

-

-

(24,416)

(24,416)

(24,416)

(24,416)

-

-

-

74

74

129

-

4,453

-

4,582

125

4,276

6,383

400,022

7,483

1,362

(68,368)

346,882

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Company

Year ended 
31 December 
2022 
£’000

Year ended 
31 December 
2021 
£’000

Year ended 
31 December 
2022 
£’000

Year ended 
31 December 
2021 
£’000

Note

33,581

(6,971)

(24,416)

(26,290)

Cash flows from operating activities
Profit/(loss)
Adjustments for:

Depreciation and amortisation

16 17

Share option expense

Loss/(gain) on sale of PP&E

Net finance costs
Income tax expense

Share of earnings from joint ventures

Non-cash items
Increase in trade and other receivables

(Increase)/decrease in inventories

Increase in trade and other payables

Decrease in provisions

Income tax paid
Net cash inflows/(outflows)  
from operating activities

Investing activities

Purchase of property, plant and equipment 

Sale of property, plant and equipment

Purchase of intangible assets 

15

16

17

37,116

30

4,453

(1,471)

10,438

9,142

(786)

(475)

(6,807)

(17,322)

31,182

(19)

(11,332)

87,730

(51,008)

10,235

(1,713)

19,115

2,006

2,321

101

7,360

4,699

(291)

(1,103)

(1,178)

130

9,142

(1,339)

(4,451)

29,541

(22,555)

3,475

(62)

Acquisition of businesses (net of cash acquired)

(43,318)

(350,940)

Financial derivative

Loans granted

Interest received

Net cash used in investing activities

Financing activities

Proceeds from share issue

Cost of share issue 

Proceeds from borrowings

Cost of borrowings

Repayment of borrowings

Net loans with subsidiaries

Interest paid

Dividends paid

Net cash used in financing activities
Net increase/(decrease) in  
cash and cash equivalents

Cash and cash equivalents at beginning of period

Exchange losses on cash

Cash and cash equivalents and end of period

22

278

-
603

(84,923)

129

-
36,154

-
(30,361)

-
(9,732)

(3,038)

(6,848)

(4,041)

69,916

2,748

68,623

(4,327)

(750)

-
(375,159)

263,344

(8,748)

155,734

(5,425)

(12,253)

-
(3,511)

(601)

388,540

42,922

27,452

(458)

69,916

118

-
4,453

7,032

-

-
3,927

(450)

-
4,151

-

-
(5,185)

(14)

-

-
(43,427)

302

-
7

49

-
2,321

-
2,705

-

-
(275)

(1,142)

-
2,348

-

-
(20,284)

(426)

-

-
(379,854)

(302)

(750)

5

(43,132)

(381,327)

129

-
26,840

-
(8,067)

22,801

(7,537)

-
34,166

(14,151)

19,038

168

5,055

262,085

(8,748)

167,020

(5,425)

-
(3,927)

(1,858)

(21)

409,126

7,515

11,521

2

19,038

The Notes on pages 160-202 form part of these Financial Statements.

The Notes on pages 160-202 form part of these Financial Statements.

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Major non-cash transactions  
During the year ended 31 December 2022 there were share based payments of £0.5 million. During the year ended 31 
December 2021 there were share based payments of £42.7 million as part of the Nordkalk acquisition. £0.8m is a non-cash gain 
on a liquidation of Coordination du Hainaut SCS and the remainder of non-cash movements are not considered material.

 
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FINANCIAL REPORT  

Notes to the financial statements

1. General Information

The principal activity of SigmaRoc is to make investments 
and/or acquire projects in the quarried materials sector, and 
the principal activity of the Group is the production of high-
quality aggregates and supply of value-added industrial and 
construction materials. The Company’s shares are admitted 
to trading on AIM and it is incorporated and domiciled in the 
United Kingdom. 

The address of its registered office is 6 Heddon Street, 
London, W1B 4BT

2. Accounting Policies

The principal accounting policies applied in the preparation 
of these Financial Statements are set out below (‘Accounting 
Policies’ or ‘Policies’). These Policies have been consistently 
applied to all the periods presented, unless otherwise stated.

2.1. Basis of Preparing the Financial 
Statements

The Group and Company Financial Statements have been 
prepared in accordance with UK-adopted International 
Accounting Standards in accordance with the requirements 
of the Companies Act 2006. The Financial Statements have 
also been prepared under the historical cost convention

The Financial Statements are presented in UK Pounds 
Sterling rounded to the nearest thousand.

The preparation of Financial Statements in conformity 
with UK IAS requires the use of certain critical accounting 
estimates. It also requires management to exercise 
its judgement in the process of applying the Group’s 
Accounting Policies. The areas involving a higher degree of 
judgement or complexity, or areas where assumptions and 
estimates are significant to the Financial Information are 
disclosed in Note 4.

a) Changes in Accounting Policy

i)  New standards and amendments adopted by the Group

The IASB issued various amendments and revisions to UK IAS 
and IFRSIC interpretations which include IFRS 3 - Reference 
to Conceptual Framework, IAS 37 – Onerous Contracts, 
IAS 16 – Proceeds before intended use, IAS 8 – Accounting 
estimates and Annual Improvements – 2018 – 2020 Cycle. 
The amendments and revisions were applicable for the period 
ended 31 December 2022 but did not result in any material 
changes to the financial statements of the Group or Company

ii)  New standards, amendments and interpretations in 

issue but not yet effective or not early adopted

Standards, amendments and interpretations that are not yet 
effective and have not been early adopted are as follows:

Standard  Impact on initial 

IAS 12
IFRS 17
IAS 8

IAS 1

application
Income taxes
Insurance contracts
Accounting estimates
Presentation of Financial 
Statements

Effective date

1 January 2023
1 January 2023
1 January 2023

1 January 2023

The Group is evaluating the impact of the new and amended 
standards above which are not expected to have a material 
impact on the Group’s results or shareholders’ funds.

2.2. Basis of Consolidation

a)   Subsidiaries

The Consolidated Financial Statements consolidate the 
Financial Statements of the Company and the accounts of all 
of its subsidiary undertakings for all periods presented.

Subsidiaries are entities over which the Group has control. 
The Group controls an entity when the Group is exposed to, 
or has rights to, variable returns from its involvement with 
the entity and has the ability to affect those returns through 
its power over the entity. Subsidiaries are fully consolidated 
from the date on which control is transferred to the Group. On 
consolidation all inter-company transactions, balances and 
unrealised gains and losses on transactions between group 
companies are eliminated. They are deconsolidated from the 
date that control ceases.

The Group applies the acquisition method of accounting 
to account for business combinations. The consideration 
transferred for the acquisition of a subsidiary is the fair values 
of the assets transferred, the liabilities incurred to the former 
owners of the acquiree and the equity interests issued by the 
Group. The consideration transferred includes the fair value of 
any asset or liability resulting from a contingent consideration 
arrangement. Identifiable assets acquired and liabilities and 
contingent liabilities assumed in a business combination are 
measured initially at their fair values at the acquisition date.

Acquisition-related costs are expensed as incurred unless 
they result from the issuance of shares, in which case they are 
offset against the premium on those shares within equity.

Any contingent consideration to be transferred by the Group 
is recognised at fair value at the acquisition date. Subsequent 
changes to the fair value of the contingent consideration 
that is deemed to be an asset or liability is recognised in 
accordance with IAS 39 either in profit or loss or as a change 
to other comprehensive income. Contingent consideration 
that is classified as equity is not re-measured, and its 
subsequent settlement is accounted for within equity.

Investments in subsidiaries are accounted for at cost less 
impairment. 

Where considered appropriate, adjustments are made to the 
financial information of subsidiaries to bring the accounting 
policies used into line with those used by other members 
of the Group. All intercompany transactions and balances 
between Group enterprises are eliminated on consolidation.

CDH, B-Mix, Stone and GduH use Belgian GAAP rules to 
prepare and report their financial statements. The Group 
reports using UK IAS standards and in order to comply with 
the Group’s reporting standards, management of CDH and 
B-Mix processed several adjustments to ensure the financial 
information included at a Group level complies with UK 
IAS. CDH and B-Mix will continue to prepare their company 
financial statements in line with the Belgian GAAP rules. 

Nordkalk entities use local GAAP rules to prepare and report 
their financial statements. The Group reports using UK IAS 
standards and in order to comply with the Group’s reporting 

standards, management of Nordkalk processed several 
adjustments to ensure the financial information included at a 
Group level complies with UK IAS. Nordkalk will continue to 
prepare their company financial statements in line with the 
local GAAP rules. 

b)  Associates

Associates are entities over which the Group has significant 
influence but not control over the financial and operating 
policies. Investments in associates are accounted for using 
the equity method of accounting and are initially recognised 
at cost. The Group’s share of its associates’ post-acquisition 
profits or losses is recognised in profit or loss, and its share 
of post-acquisition movements in reserves is recognised 
in other comprehensive income. The cumulative post-
acquisition movements are adjusted against the carrying 
amount of the investment.

Accounting policies of equity–accounted investees have been 
changed where necessary to ensure consistency with the 
policies adopted by the Group.

c)  Joint Arrangement
A joint arrangement is an arrangement in which two or 
more parties have joint control. A joint venture is a joint 
arrangement in which the parties that share joint control 
have rights to the net assets of the arrangement. Joint 
arrangements are accounted for using the equity method of 
accounting and are initially recognised at cost. The Group’s 
share of its associates’ post-acquisition profits or losses is 
recognised in profit or loss.  

d)  Employee Benefit Trust
Where considered appropriate, adjustments are made to the 
financial information of subsidiaries to bring the accounting 
policies used into line with those used by other members 
of the Group. All intercompany transactions and balances 
between Group enterprises are eliminated on consolidation. 

The Employee Benefit Trust is considered to be a special 
purpose entity in which the substance of the relationship 
is that of control by the group in order that the group may 
benefit from its control. The assets held by the trust are 
consolidated into the group.

2.3. Going Concern

The Financial Statements have been prepared on a going 
concern basis which the directors consider to be appropriate 
for the following reasons.

The Group meets its day-to-day working capital and other 
funding requirements through operating cash generation and 
its Debt Facilities. The Debt Facilities comprises of a £205 
million committed term facility, £100 million revolving credit 
facility and a further £100 million accordion option which 
matures on 15 July 2026. The Group has met all covenants 
on its Debt Facilities. 

The Group has prepared cash flow forecasts for a period of 
more than 12 months which anticipate a continuous upward 
trend of profitability and cash generation. As the Group has 
a strong focus on operational gearing, it can remain flexible 
during economically disruptive events which can have a 
negative effect on cash flow.

At 31 December 2022, the Group had cash of £68.6 
million and undrawn banking facilities of £173 million, and 
at the date of this report has similar levels of liquidity which 
is expected to provide sufficient funds for the Group to 

discharge its liabilities as and when they fall due and ensure 
covenants are met.

Based on the above, the directors believe that it remains 
appropriate to prepare the financial statements on a Going 
Concern basis.

2.4. Segment Reporting

Operating segments are reported in a manner consistent 
with the internal reporting provided to the chief operating 
decision-maker. The chief operating decision-maker, who 
is responsible for allocating resources and assessing 
performance of the operating segments, has been identified 
as the Board of Directors that makes strategic decisions.

2.5. Foreign Currencies

a) Functional and Presentation Currency

 Items included in the Financial Statements are measured 
using the currency of the primary economic environment 
in which the entity operates (the ‘functional currency’). The 
Financial Statements are presented in Pounds Sterling, 
rounded to the nearest £000’s, which is the Group’s 
functional currency.

b) Transactions and Balances

Foreign currency transactions are translated into the 
functional currency using the exchange rates prevailing 
at the dates of the transactions or valuation where such 
items are re-measured. Foreign exchange gains and 
losses resulting from the settlement of such transactions 
and from the translation at year-end exchange rates of 
monetary assets and liabilities denominated in foreign 
currencies are recognised in the Income Statement. Foreign 
exchange gains and losses that relate to borrowings and 
cash and cash equivalents are presented in the Income 
Statement within ‘finance income or costs’. An exception 
to this is when the borrowings exchange differences arise 
on monetary items that form part of the reporting entity’s 
net investment in a foreign operation, in the consolidated 
financial statements the exchange gain or loss will be 
shown in other comprehensive income. All other foreign 
exchange gains and losses are presented in the Income 
Statement within ‘Other net gains/(losses)’.

Translation differences on non-monetary financial assets 
and liabilities such as equities held at fair value through 
profit or loss are recognised in profit or loss as part of the 
fair value gain or loss. Translation differences on non-
monetary financial assets measured at fair value, such as 
equities classified as available for sale, are included in other 
comprehensive income.

c) Group companies

The results and financial position of all the Group entities 
(none of which has the currency of a hyperinflationary 
economy) that have a functional currency different from the 
presentation currency are translated into the presentation 
currency as follows:

 –     assets and liabilities for each period end date presented 

are translated at the period-end closing rate;

 –     income and expenses for each Income Statement are 

translated at average exchange rates (unless this average 
is not a reasonable approximation of the cumulative effect 
of the rates prevailing on the transaction dates, in which 
case income and expenses are translated at the dates of 
the transactions); and

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Notes to the financial statements 

 –     all resulting exchange differences are recognised in other 

comprehensive income.

Goodwill and fair value adjustments arising on the 
acquisition of a foreign entity are treated as assets and 
liabilities of the foreign entity and translated at the closing 
rate. Exchange differences arising are recognised in other 
comprehensive income. On consolidation, exchange 
differences arising from the translation of the net investment 
in foreign entities, and of monetary items receivable from 
foreign subsidiaries for which settlement is neither planned 
nor likely to occur in the foreseeable future, are taken to 
other comprehensive income. When a foreign operation 
is sold, such exchange differences are recognised in the 
Income Statement as part of the gain or loss on sale.

2.6. Intangible Assets

Goodwill arises on the acquisition of subsidiaries and 
represents the excess of the consideration transferred and 
the acquisition date fair value of any previous equity interest 
in the acquire over the fair value of the net identifiable 
assets, liabilities and contingent liabilities of the acquire. 
If the total of consideration transferred, non-controlling 
interest recognised and previously held interest measured 
at fair value is less than the fair value of the net assets of the 
subsidiary acquired, in the case of a bargain purchase, the 
difference is recognised directly in the Income Statement.

As reported within the CEO’s strategic report, a PPA was 
carried out to assess the fair value of the assets acquired 
in B-Mix and Nordkalk as at the completion date. As a 
result of this exercise, goodwill in B-Mix decreased from 
£6.4 million to £2 million with the corresponding movement 
being land and buildings. Goodwill in Nordkalk decreased 
from £268.8 million to £35 million with the corresponding 
movement being customer relations, vehicles, land and 
buildings and land and minerals. The current accounting 
policies regarding the subsequent treatment intangible 
assets will apply to fair value uplift attributable to the PPA.

Amortisation is provided on intangible assets to write off 
the cost less estimated residual value of each asset over its 
expected useful economic life on a straight-line basis at the 
following annual rates:

Goodwill

Customer relations

Intellectual property

Research and Development

Branding

Other intangibles

0%

7% - 12.5%

10% – 12%

10% – 20%

5% - 10%

10% - 20%

For the purpose of impairment testing, goodwill acquired 
in a business combination is allocated to each of the 
cash-generating units, or groups of cash-generating 
units, that are expected to benefit from the synergies of 
the combination. Each unit or group of units to which the 
goodwill is allocated represents the lowest level within 
the entity at which the goodwill is monitored for internal 
management purposes. Goodwill is monitored at the 
operating segment level.

Goodwill is not amortised however impairment reviews are 
undertaken annually, or more frequently if events or changes 
in circumstances indicate a potential impairment. The 
carrying value of goodwill is compared to the recoverable 
amount, which is the higher of value in use, discounted to 
present value using a pre-tax discount rate reflective of the 
time value of money and risks specific to the business unit. 
Any impairment is recognised immediately as an expense 
and is not subsequently reversed.

Other intangibles consist of capitalised development 
costs for assets produced that assist in the operations 
of the Group and incur revenue. Impairment reviews are 
performed annually. Where the benefit of the intangible 
ceases or has been superseded, these are written off the 
Income Statement.

2.7. Property, Plant and Equipment

Property, plant and equipment is stated at cost, plus 
any purchase price allocation uplift, less accumulated 
depreciation and any accumulated impairment losses. 
Subsequent costs are included in the asset’s carrying 
amount or recognised as a separate asset, as appropriate, 
only when it is probable that future economic benefits 
associated with the item will flow to the Group and the cost 
of the item can be measured reliably. The carrying amount 
of the replaced part is derecognised. All other repairs and 
maintenance are charged to the Income Statement during 
the financial period in which they are incurred.

Depreciation is provided on all property, plant and 
equipment to write off the cost less estimated residual value 
of each asset over its expected useful economic life on a 
straight-line basis at the following annual rates:

Office equipment

Land and minerals

Land and buildings

Plant and machinery

Furniture and vehicles

Construction in progress

12.5% – 50%

0 – 10%

0 – 10%

4% – 33%

7.5% – 33.3%

0%

The assets’ residual values and useful lives are reviewed, and 
adjusted if appropriate, at the end of each reporting period.

An asset’s carrying amount is written down immediately 
to its recoverable amount if the asset’s carrying amount is 
greater than its estimated recoverable amount.

Gains and losses on disposal are determined by comparing 
the proceeds with the carrying amount and are recognised 
within ‘Other net gains/(losses)’ in the Income Statement.

2.8. Land, Mineral Rights and 
Restoration Costs

Land, quarry development costs, which include directly 
attributable construction overheads and mineral rights 
are recorded at cost plus any PPA uplift. Land and quarry 
development are depreciated and amortised, respectively, 
using the units of production method, based on estimated 
recoverable tonnage. 

Where the Group has a legal or constructive obligation for 
restoration of a site the costs of restoring this site is provided 
for. The initial cost of creating this provision is capitalised 
within property, plant and equipment and depreciated over 
the life of the site. The provisions are discounted to their 
present value at a rate which reflects the time value of money 
and risks specific to the liability. Changes in the measurement 
of a previously capitalized provision are accordingly added or 
deducted from the value of the asset. 

The depletion of mineral rights and depreciation of restoration 
costs are expensed by reference to the quarry activity during 
the period and remaining estimated amounts of mineral to be 
recovered over the expected life of the operation.

The process of removing overburden and other mine 
waste materials to access mineral deposits is referred to 
as stripping.

There are two types of stripping activity:

 –     Development stripping is the initial overburden removal 
during the development phase to obtain access to a 
mineral deposit that will be commercially produced.

 –     Production stripping relates to overburden removal 

during the normal course of production activities and 
commences after the first saleable minerals have been 
extracted from the component.

Development stripping costs are capitalised as a 
development stripping asset when:

 –     It is probable that future economic benefits associated with 

the asset will flow to the entity; and

 –     The costs can be measured reliably.

Production stripping can give rise to two benefits, the 
extraction of ore in the current period and improved access 
to the ore body component in future periods. To the extent 
that the benefit is the extraction of ore stripping costs are 
recognised as an inventory cost. To the extent that the 
benefit is improved access to future ore, stripping costs are 
recognised as a production stripping asset if the following 
criteria are met:

 –     It is probable that the future economic benefit (improved 

access to ore) will flow to the entity;

 –     The component of the ore body for which access has 

been improved can be identified; and

assets held for trading. A financial asset is classified in this 
category if acquired principally for the purpose of selling in 
the short term. Derivatives are also categorised as held for 
trading unless they are designated as hedges.

Assets in this category are classified as current assets if 
expected to be settled within 12 months; otherwise, they are 
classified as non-current. 

(ii) Financial Assets at Fair Value through other comprehensive 
income

A financial asset is classified and subsequently measured at 
fair value through other comprehensive income if it meets the 
SPPI criterion and is managed in a business model in which 
assets are held both for sale and to collect contractual cash 
flows, or if an investment in an equity instrument is elected 
to be measured at fair value through other comprehensive 
income. Derivatives eligible for hedge accounting are 
classified as financial assets at fair value through other 
comprehensive income.

(iii) Loans and Receivables

Loans and receivables are non-derivative financial assets 
with fixed or determinable payments that are not quoted in 
an active market. They are included in current assets, except 
for maturities greater than 12 months after the balance sheet 
date. These are classified as non-current assets. The Group’s 
loans and receivables comprise trade and other receivables 
and cash and cash equivalents at the year-end.

Recognition and Measurement

Regular purchases and sales of financial assets are 
recognised on the trade date – the date on which the Group 
commits to purchasing or selling the asset. Financial assets 
carried at fair value through profit or loss is initially recognised 
at fair value, and transaction costs are expensed in the 
Income Statement. Financial assets are derecognised when 
the rights to receive cash flows from the assets have expired 
or have been transferred, and the Group has transferred 
substantially all of the risks and rewards of ownership. 

Loans and receivables are subsequently carried at amortised 
cost using the effective interest method.

Gains or losses arising from changes in the fair value 
of financial assets at fair value through profit or loss are 
presented in the Income Statement within “Other (Losses)/
Gains” in the period in which they arise.

 –     The costs relating to the stripping activity can be measured 

reliably.

Derivative Financial Instruments and Hedging 
Activities recognition and measurement

The development and production stripping assets are 
depreciated in accordance with units of production based 
on the proven and probable reserves of the relevant 
components. Stripping assets are classified as other minerals 
assets in property, plant and equipment.

2.9. Financial Assets

Classification

The Group’s financial assets consist of loans and receivables. 
The classification depends on the purpose for which the 
financial assets were acquired. Management determines the 
classification of its financial assets at initial recognition.

Derivatives are initially recognised at fair value on the date 
a derivative contract is entered into and are subsequently 
remeasured at their fair value. The method of recognising 
the resulting gain or loss depends on whether the derivative 
is designated as a hedging instrument, and, if so, the nature 
of the item being hedged. The Group designates certain 
derivatives as either:

 – hedges of the fair value of recognised assets or liabilities or 

a firm commitment (fair value hedge);

 – hedges of a particular risk associated with a recognised 
asset or liability or a highly probable forecast transaction 
(cash flow hedge); or

(i) Financial Assets at Fair Value through Profit or Loss

 – hedges of a net investment in a foreign operation (net 

Financial assets at fair value through profit or loss are financial 

investment hedge).

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Notes to the financial statements 

At inception of the hedge relationship, the Group documents 
the economic relationship between hedging instruments and 
hedged items, including whether changes in the cash flows 
of the hedging instruments are expected to offset changes 
in the cash flows of hedged items. The Group documents its 
risk management objective and strategy for undertaking its 
hedge transactions.

The fair values of various derivative instruments used for 
hedging purposes are disclosed in Note 33. Movements on 
the revaluation reserve in shareholders’ equity are shown in 
Note 30. The full fair value of a hedging derivative is classified 
as a non-current asset or liability if the remaining maturity of 
the hedged item is more than 12 months, and as a current 
asset or liability if the remaining maturity of the hedged item 
is less than 12 months. Trading derivatives are classified as a 
current asset or liability.

Impairment of Financial Assets

The Group assesses at the end of each reporting period 
whether there is objective evidence that a financial asset, or 
a group of financial assets, is impaired. A financial asset, or a 
group of financial assets, is impaired and impairment losses 
are incurred, only if there is objective evidence of impairment 
as a result of one or more events that occurred after the initial 
recognition of the assets (a “loss event”), and that loss event 
(or events) has an impact on the estimated future cash flows 
of the financial asset, or group of financial assets, that can be 
reliably estimated.

The criteria that the Group uses to determine that there is 
objective evidence of an impairment loss include:

 –  significant financial difficulty of the issuer or obligor;

 –  a breach of contract, such as a default or delinquency in 

interest or principal repayments;

 –  the Group, for economic or legal reasons relating to the 
borrower’s financial difficulty, granting to the borrower a 
concession that the lender would not otherwise consider; 
and

 –  it becomes probable that the borrower will enter 
bankruptcy or another financial reorganisation.

The Group first assesses whether objective evidence of 
impairment exists.

The amount of the loss is measured as the difference 
between the asset’s carrying amount and the present value 
of estimated future cash flows (excluding future credit  
losses that have not been incurred), discounted at the 
financial asset’s original effective interest rate. The asset’s 
carrying amount is reduced and the loss is recognised in the 
Income Statement. 

If, in a subsequent period, the amount of the impairment loss 
decreases and the decrease can be related objectively to an 
event occurring after the impairment was recognised (such 
as an improvement in the debtor’s credit rating), the reversal 
of the previously recognised impairment loss is recognised in 
the Income Statement.

2.10. Inventories

Inventories are initially recognised at cost, and subsequently 
at the lower of cost and net realisable value, which is the 
estimated selling price in the ordinary course of business, 
less applicable variable selling expenses. Cost comprises 
all costs of purchase, costs of conversion and other costs 
incurred in bringing the inventories to their present location 
and condition. In the case of manufactured inventories and 
work in progress, cost includes an appropriate share of 
overheads based on normal operating capacity.

Weighted average cost is used to determine the cost of 
ordinarily interchangeable items.

2.11. Trade Receivables

Trade receivables are recognised initially at fair value, and 
subsequently measured at amortised cost using the effective 
interest method, less provision for impairment. Trade 
receivables are amounts due from third parties in the ordinary 
course of business. If collection is expected in one year or 
less, they are classified as current assets. If not, they are 
presented as non-current assets.

Trade receivables – factoring

The carrying amounts of the trade receivables excludes 
receivables which are subject to a factoring arrangement. 
Under this arrangement, the Group has transferred the 
relevant receivables to the factor in exchange for cash 
without recourse. Therefore, it doesn’t recognise the 
transferred assets in their entirety in its balance sheet.

The value of factored receivables at each year end are as 
follows:

31 December 
2022 
£’000

31 December 
2021 
£’000

Total factoring 

5,004

2,960

2.12. Cash and Cash Equivalents

Cash and cash equivalents comprise cash at bank and in 
hand and are subject to an insignificant risk of changes  
in value.

2.13. Share Capital

Ordinary shares are classified as equity. Incremental costs 
directly attributable to the issue of new shares or options 
are shown in equity as a deduction, net of tax, from the 
proceeds.

2.14. Reserves

Share Premium – the reserve for shares issued above the 
nominal value. This also includes the cost of share issues that 
occurred during the year.

Retained Earnings – the retained earnings reserve includes all 
current and prior periods retained profit and losses.

Share Option Reserve – represents share options awarded 
by the Company.

Other Reserves comprise the following:

Capital Redemption Reserve – the capital redemption reserve 
is the amount equivalent to the nominal value of shares 
redeemed by the Group.

Foreign Currency Translation Reserve - represents the 
translation differences arising from translating the financial 
statement items from functional currency to presentational 
currency.

Deferred Shares – are shares that effectively do not have any 
rights or entitlements.

Hedging Reserve – includes derivative instruments used for 
cash-flow hedging.

Fair-value Reserve – represents the changes of values in 
certain assets.

2.15. Trade Payables

Trade payables are obligations to pay for goods or services 
that have been acquired in the ordinary course of business 
from suppliers. Accounts payable are classified as current 
liabilities if payment is due within one year or less. If not, they 
are presented as non-current liabilities. 

Trade payables are recognised initially at fair value, and 
subsequently measured at amortised cost using the effective 
interest method.

2.16. Provisions

The Group provides for the costs of restoring a site where a 
legal or constructive obligation exists. The estimated future 
costs for known restoration requirements are determined on 
a site-by-site basis and are calculated based on the present 
value of estimated future costs. 

The amount recognised as a provision is the best estimate 
of the consideration required to settle the present obligation 
at the end of the reporting period, taking into account the 
risks and uncertainties surrounding the obligation. When 
a provision is measured using the cash flows estimated 
to settle the present obligation, its carrying amount is the 
present value of those cash flows (where the effect of the 
time value of money is material). The increase in provisions 
due to the passage of time is included in the Consolidated 
Income Statement.

2.17. Borrowings

Bank and Other Borrowings

Interest-bearing bank loans and overdrafts and other 
loans are recognised initially at fair value less attributable 
transaction costs. All borrowings are subsequently stated 
at amortised cost with the difference between initial net 
proceeds and redemption value recognised in the Income 
Statement over the period to redemption on an effective 
interest basis.

2.18. Taxation

Tax is recognised in the Income Statement, except to 
the extent that it relates to items recognised in other 
comprehensive income or directly in equity. In this case, the 
tax is also recognised in other comprehensive income or 
directly in equity, respectively. 

Deferred tax is recognised using the liability method in 
respect of temporary differences arising from differences 

between the carrying amount of assets and liabilities in the 
consolidated financial statements and the corresponding 
tax bases used in the computation of taxable profit. 
However, deferred tax liabilities are not recognised if they 
arise from the initial recognition of goodwill; deferred tax 
is not accounted for if it arises from initial recognition of 
an asset or liability in a transaction other than a business 
combination that at the time of the transaction affects 
neither accounting nor taxable profit or loss. 

In principle, deferred tax liabilities are recognised for all 
taxable temporary differences and deferred tax assets 
(including those arising from investments in subsidiaries), 
are recognised to the extent that it is probable that taxable 
profits will be available against which deductible temporary 
differences can be utilised.

Deferred income tax assets are recognised on deductible 
temporary differences arising from investments in 
subsidiaries only to the extent that it is probable the 
temporary difference will reverse in the future and there 
is sufficient taxable profit available against which the 
temporary difference can be used.

Deferred tax liabilities are recognised for taxable temporary 
differences arising on investments in except where the 
Group is able to control the reversal of the temporary 
difference and it is probable that the temporary difference 
will not reverse in the foreseeable future.

Deferred tax assets and liabilities are offset when there is a 
legally enforceable right to offset current tax assets against 
current tax liabilities and when the deferred tax assets and 
liabilities relate to income taxes levied by the same taxation 
authority on either the same taxable entity or different 
taxable entities where there is an intention to settle the 
balances on a net basis.

Deferred tax is calculated at the tax rates (and laws) 
that have been enacted or substantively enacted by the 
statement of financial position date and are expected to 
apply to the period when the deferred tax asset is realised, 
or the deferred tax liability is settled. 

Deferred tax assets and liabilities are not discounted.

2.19. Non-Underlying Items

Non-underlying items are a non UK IAS measure, but the 
Group have disclosed these separately in the financial 
statements, where it is necessary to do so to provide 
further understanding of the financial performance of the 
Group. They are items that are not expected to be recurring 
or do not relate to the ongoing operations of the Group’s 
business and non-cash items which distort the underlying 
performance of the business.

2.20. Revenue Recognition

Group revenue arises from the sale of goods and 
contracting services. Revenue is measured at the fair 
value of the consideration received or receivable and 
represents amounts receivable for goods or services 
supplied in course of ordinary business, stated net of 
discounts, returns and value added taxes. The Group 
recognises revenue in accordance with IFRS 15, identifying 
performance obligations within its contracts with customers, 
determining the transaction price applicable to each of 
these performance obligations and selecting an appropriate 
method for the timing of revenue recognition, reflecting the 

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Notes to the financial statements 

substance of the performance obligation at either a point in 
time or over time.

2.21. Finance Income

Sale of goods

The majority of the Group’s revenue is derived from the sale 
of physical goods to customers. Depending on whether the 
goods are delivered to or collected by the customer, the 
contract contains either one performance obligation which 
is satisfied at the point of collection, or two performance 
obligations which are satisfied simultaneously at the point 
of delivery. The performance obligation of products sold are 
transferred according to the specific terms that have been 
formally agreed with the customer, generally upon delivery 
when the bill of lading is signed as evidence that they have 
accepted the product delivered to them.

The transaction price for this revenue is the amount which 
can be invoiced to the customer once the performance 
obligations are fulfilled, reduced to reflect provisions 
recognised for returns, trade discounts and rebates. The 
Group does not routinely offer discounts or volume rebates, 
but where it does the variable element of revenue is based 
on the most likely amount of consideration that the Group 
believes it will receive. This value excludes items collected on 
behalf of third parties, such as sales and value added taxes.

For all sales of goods, revenue is recognised at a point  
in time, being the point that the goods are transferred to 
the customer.

Contracting services

The majority of contracting services revenue arises from 
contract surfacing work, which typically comprises short-
term contracts with a performance obligation to supply and 
lay product. Other contracting services revenue can contain 
more than one performance obligation dependent on the 
nature of the contract.

The transaction price is calculated as consideration 
specified by the contract, adjusted to reflect provisions 
recognised for returns, remedial work arising in the normal 
course of business, trade discounts and rebates.

Where the contract provides for elements of variable 
consideration, these values are included in the calculation 
of the transaction price only to the extent that it is ‘highly 
probable’ that a significant reversal in the amount of 
cumulative revenue recognised will not occur when the 
uncertainty associated with the variable consideration is 
resolved. Where the transaction price is allocated between 
multiple performance obligations on other contracts, this 
typically reflects the allocation of value to each performance 
obligation agreed with the end customer, unless this does 
not reflect the economic substance of the transaction.

Performance obligations for contracting services are 
satisfied over time. Revenue is therefore recognised over 
time on an output basis, being volume of product laid 
for contract surfacing. As the performance obligations 
relating to contracting revenues have an expected duration 
less than 12 months, the Group has taken the practical 
expedient on the performance obligations disclosures. 

Interest income is recognised using the effective interest 
method.

2.22. Employee Benefits - Defined 
contribution plans

The Group maintains defined contribution plans for which 
the Group pays fixed contributions to publicly or privately 
administered pension insurance plans on a mandatory, 
contractual or voluntary basis and will have no legal or 
constructive obligation to pay further amounts. The Group’s 
contributions to defined contribution plans are charged 
to the Income Statement in the period to which the 
contributions relate.

2.23. Employee Benefits - Defined 
benefit plans
The Group’s net obligation in respect of defined benefit 
plans is calculated separately for each plan by estimating 
the amount of the future benefit that employees have 
earned in the current and prior periods, discounting the 
amount and deducting the fair value of any plan assets. 

Defined benefit obligations are calculated annually by a 
qualified actuary using the projected unit credit method. 
When the calculation results in a potential asset for the 
Group, the recognised asset is limited to the present value 
of economic benefits available in the form of any future 
refunds from the plan or reductions in future contributions 
to the plan. To calculate the present value of economic 
benefits, consideration is given to any applicable minimum 
funding requirements. 

Remeasurements of the net defined benefit liability, which 
comprise actuarial gains and losses, the return on plan 
assets (excluding interest) and the effect of the asset ceiling 
(if any, excluding interest), are recognised immediately in 
other comprehensive income. The Group determines the 
net interest expense (income) for the net defined benefit 
liability (asset) for the period by applying the discount 
rate used to measure the defined benefit obligation at the 
beginning of the annual period to the then-net defined 
benefit liability (asset), taking into account any changes in 
the net defined benefit liability (asset) during the period as 
a result of contributions and benefit payments. Net interest 
expense relating to defined benefit plans are recognised in 
profit or loss in net financial items. 

When the benefits of a plan are changed or when a plan is 
curtailed, the resulting change in benefit that relates to past 
service or the gain or loss on the curtailment is recognised 
immediately in the profit or loss. The Group recognises 
gains and losses on the settlement of a defined benefit plan 
when the settlement occurs. 

2.24. Share Based Payments

The Group operates a number of equity-settled,  
share-based schemes, under which the entity receives 
services from employees or third-party suppliers as 
consideration for equity instruments (options and warrants) 

of the Group. The fair value of the third-party suppliers’ 
services received in exchange for the grant of the options 
is recognised as an expense in the Consolidated Income 
Statement of Comprehensive Income or charged to equity 
depending on the nature of the service provided. The 
value of the employee services received is expensed in the 
Income Statement and its value is determined by reference 
to the fair value of the options granted:

 –  including any market performance conditions;

 –  excluding the impact of any service and non-market 

performance vesting conditions (for example, profitability 
or sales growth targets, or remaining an employee of the 
entity over a specified time period); and

 –  including the impact of any non-vesting conditions (for 

example, the requirement for employees to save).

Non-market vesting conditions are included in assumptions 
about the number of options that are expected to vest. 
The total expense or charge is recognised over the vesting 
period, which is the period over which all of the specified 
vesting conditions are to be satisfied. At the end of each 
reporting period, the entity revises its estimates of the 
number of options that are expected to vest based on the 
non-market vesting conditions. It recognises the impact 
of the revision to original estimates, if any, in the Income 
Statement or equity as appropriate, with a corresponding 
adjustment to a separate reserve in equity.

When the options are exercised, the Company issues 
new shares. The proceeds received, net of any directly 
attributable transaction costs, are credited to share capital 
(nominal value) and share premium when the options  
are exercised.

2.25. Discontinued Operations

A discontinued operation is a component of the Group’s 
business, the operations and cash flows of which can be 
clearly distinguished from the rest of the Group and which:

 –  represents a separate major line of business or 

geographic area of operations;

 –  is part of a single co-ordinated plan to dispose of a 

separate major line of business or geographic area of 
operations; or

 –   is a subsidiary acquired exclusively with a view to re-sale.

Classification as a discontinued operation occurs at the 
earlier of disposal or when the operation meets the criteria 
to be classified as held-for-sale. The Group operates several 
business units which are constantly reviewed to ensure 
profitability. During 2019 it was determined that the flagging 
& paving division at CCP’s Bury site was loss making and 
therefore it was decided that the operations at this site be 
discontinued. For further information, refer to Note 14.

2.26. Leases

The Group leases certain plant and equipment. Leases of 
plant and equipment where the Group has substantially all 
the risks and rewards of ownership are classified as finance 
leases under IFRS 16. Finance leases are capitalised on the 
lease’s commencement at the lower of the fair value of the 
leased assets and the present value of the minimum lease 
payments. Other leases are either small in value or cover a 
period of less than 12 months. 

Each lease payment is allocated between the liability and 

finance charges. The corresponding rental obligations, net 
of finance charges, are included in long-term borrowings. 
The interest element of the finance cost is charged to the 
Income Statement over the lease period so as to produce a 
constant periodic rate of interest on the remaining balance 
of the liability for each period. Assets obtained under 
finance leases are depreciated over their useful lives. The 
lease liabilities are shown in Note 24.

Rent payable under operating leases on which the short 
term exemption has been taken, less any lease incentives 
received, is charged to the income statement on a straight-
line basis over the term of the relevant lease except where 
another more systematic basis is more representative of 
the time pattern in which economic benefits from the lease 
asset are consumed.

2.27. Prior year restatement

During the year, the prior year accounting treatment of the 
PPA on acquisitions has been revisited. The fair value uplift 
on assets acquired as part of the PPA exercise should 
have resulted in a deferred tax liability being recognised in 
accordance with IFRS 3 and IAS 12. As a result, a prior year 
restatement to include deferred tax with acquired goodwill 
increasing by the same amount has been reflected within 
the financial statements. There are no changes to the prior 
period income statement, statement of comprehensive 
income, statement of changes in equity or the statement 
of cash flows. See Note 39 for details of the impact on the 
financial statement.

3. Financial Risk Management

3.1. Financial Risk Factors

The Group’s activities expose it to a variety of financial risks: 
market risk, credit risk and liquidity risk. The Group’s overall 
risk management programme focuses on the unpredictability 
of financial markets and seeks to minimise potential adverse 
effects on the Group’s financial performance.

Risk management is carried out by the UK based 
management team under policies approved by the Board  
of Directors.

a) Market Risk

The Group is exposed to market risk, primarily relating 
to interest rate, foreign exchange and commodity prices. 
The Group has not sensitised the figures for fluctuations 
in interest rates, foreign exchange or commodity prices 
as the Directors are of the opinion that these fluctuations 
would not have a significant impact on the Financial 
Statements at the present time. The Group has a strong 
focus on operational gearing, allowing it to be flexible during 
economically disruptive events however the Directors will 
continue to assess the effect of movements in market risks 
on the Group’s financial operations and initiate suitable risk 
management measures where necessary.

b) Credit Risk

Credit risk is the risk of financial loss to the Group if a 
customer or counterparty to a financial instrument fails 
to meet its contractual obligations, and arises from cash 
and cash equivalents, derivative financial instruments and, 
principally, from the Group’s receivables from customers.

Management monitors the exposure to credit risk on an 
ongoing basis and have credit insurance at a number of 
its subsidiaries. The Nordkalk entities don’t hold credit 

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insurance as they have a stable customer base with minimal 
credit losses. No credit limits were exceeded during the 
period, and management does not expect any losses from 
non-performance by these counterparties.

Exposure to credit risk

The carrying amount of financial assets represents the 
maximum credit exposure. The maximum exposure to credit 
risk at the reporting date was:

Trade and other 
receivables

Cash and cash 
equivalents

31 December 
2022 
£’000

31 December 
2021 
£’000

91,064

78,013

68,623

69,916

159,687

147,929

Credit risk associated with cash balances is managed and 
limited by transacting with financial institutions with high-
quality credit ratings.

Trade and other receivables 

The Group’s exposure to credit risk stems mainly from 
the individual characteristics of each customer. However, 
management also considers the factors that could influence 
the credit risk of its customer base, including the default risk 
of the industry and country in which customers operate.

The Group has established a credit policy under which each 
new customer is analysed individually for creditworthiness, 
before the Group’s standard payment and delivery terms 
and conditions are offered to the customer. The Group’s 
review includes external ratings, when available, and in 
some cases bank references.

Most of the Group’s customers have been trading with the 
Group for years, and no major credit losses have occurred 
with these customers. Credit risk is monitored by grouping 
customers according to their credit characteristics, including 
whether they are individuals or legal entities and whether 
they are wholesale, retail or end-user customers, as well 
as by geographic location, industry and the existence of 
previous financial difficulties.

The maximum exposure to credit risk for trade and other 
receivables by reportable segment, was: 

31 December 
2022 
£’000

31 December 
2021 
£’000

21,505

13,387

56,172

91,064

18,731

9,103

50,179

78,013

North West

West

North East

Impairment

At the reporting date the ageing of the trade receivables that 
were not impaired, were as follows.

31 December 
2022 
£’000

31 December 
2021 
£’000

79,261

68,051

8,913

1,491

437

554

(185)

66,166

47,345

14,211

1,996

815

1,799

(182)

Total trade receivables

Not overdue

Overdue 1 – 30 days

Overdue 31 – 60 days

Overdue 61 – 90 days

More than 90 days

Impairment loss 
recognised

Provisions for impairment of trade and other receivables 
are calculated on a lifetime expected loss model in line with 
the simplified approach available under IFRS 9 for Trade 
Receivables. The key inputs in determining the level of 
provision are the historical level of bad debts experienced 
by the Group and ageing of outstanding amounts. 
Movements during the year were as follows:

31 
December 
2022 
£’000

31 
December 
2021 
£’000

1,060

36

132

(846)

382

763

571

182

(456)

1,060

At January 1

Amounts arising from 
business combinations

Charged to the 
Consolidated income 
statement during the year

Movement in provision

Derivatives

Subsidiary currency risks are hedged by the parent or 
ultimate parent acting as counterparty in currency forward 
deals. External currency hedging is performed by finance 
and treasury functions as appropriate. In such deals, the 
counterparty is a bank or financial institution with a rating 
at least Baa3 from Moody’s rating agency. A comparable 
credit rating from a reputable credit rating agency is 
acceptable. Exceptions may be granted on an individual 
basis in rare cases where a bank is chosen for geographical 
reasons, but does not fulfil the stipulated rating criteria.

Items hedged against are CO2 emission rights, forecast 
energy consumption, loans in foreign currency and 
forecast earnings. 

c) Currency Risk

Following the Nordkalk acquisition, the Group is exposed 
to currency risk to the extent that there is a mismatch 
between the currencies in which sales and purchases are 
denominated and the respective functional currencies of 

Group companies. The functional currencies of Group 
companies are primarily the Pound, the Euro, the Polish 
Zlothy (PLN) and the Swedish Krona (SEK). The currencies 
in which these transactions are primarily denominated are 
GBP, EUR, PLN and SEK. Additional exposures may arise 
from purchase of fuel in USD.

At any point in time, the Group hedges on average 60 to 
100% of its estimated foreign currency exposure in respect 
of forecast sales and purchases over the following 12-18 
months. The Group uses forward exchange contracts to 
hedge its currency risk, with a maturity of up to 12 months 
from the reporting date.

Borrowings are, with a few exceptions, denominated in the 
subsidiaries domestic currencies.

In respect of other monetary assets and liabilities 
denominated in foreign currencies, the Group’s policy is to 
ensure that its net exposure remains at an acceptable level 
by buying or selling foreign currencies at spot rates when 
necessary to address short-term imbalances.

Exposure to currency risk

Currency risk sensitivity to a +/- 10% change in the 
exchange rate is shown for the net currency position per 
currency. The summary of quantitative data relating to the 
Group’s exposure to currency risk as reported to the Group 
management is as follows:

2022

GBP thousand

USD

SEK

NOK

PLN

Gross 
exposure

(17,126)

17,028

(3,571)

(1,185)

Hedged

17,532

(14,068)

3,012

720

Net exposure

406

2,960

(559)

(465)

Sensitivity 
analysis  
(+/- 10%)

d) Liquidity Risk

41

296

(56)

(47)

The Group’s continued future operations depend on the 
ability to raise sufficient working capital through the issue of 
equity share capital or debt. The Directors are reasonably 
confident that adequate funding will be forthcoming with 
which to finance operations owing to the continued support 
of the lenders and a history of successful capital raises. 
Controls over expenditure are carefully managed. 

1-12 
months 
£’000

1-2 
years 
£’000

2-5 
years 
£’000

More 
than 5 
years 
£’000

2022 
Contractual 
cash flows

Non-derivative 
financial 
liabilities

Loans

26,500 29,879 177,503

1,577

Trade payables

69,907

-

-

-

96,407 29,879 177,503

1,577

Derivative 
financial 
liabilities

Forward 
exchange 
contracts used 
for hedging

556

-

Electricity hedges 

825

1,381

526

526

-

26

26

-

-

-

The outflows disclosed in the above tables represent the 
contractual undiscounted cash flows relating to derivative 
financial liabilities held for risk management purposed and 
which are not usually closed out before contractual maturity. 

The interest payments on the variable interest rate loans 
in the table above reflect market forward interest rates at 
the reporting date and these amounts may change in line 
with changes in market interest rates. The future cash flows 
from derivative instruments may differ from the amount 
in the above table as interest rates and exchange rates 
change. With the exception of these financial liabilities, it is 
not expected that the cash flows included in the maturity 
analysis could occur significantly earlier or at significantly 
different amounts. 

3.2. Capital Risk Management

The Group’s objectives when managing capital are to 
safeguard the Group’s ability to continue as a going 
concern, in order to enable the Group to continue its 
construction material investment activities, and to maintain 
an optimal capital structure to reduce the cost of capital.

In order to maintain or adjust the capital structure, the 
Group may adjust the issue of shares or sell assets to 
reduce debts.

The Group defines capital based on the total equity of the 
Company. The Group monitors its level of cash resources 
available against future planned operational activities and 
the Company may issue new shares in order to raise further 
funds from time to time.

The gearing ratio at 31 December 2022 is as follows:

Consolidated

31 December 
2022 
£’000

31 December 
2021 
£’000

262,476

233,923

(68,623)

(69,916)

193,853

469,850

663,703

0.29

164,007

411,154

575,161

0.29

Total borrowings  
(Note 24)

Less: Cash and cash 
equivalents (Note 22)

Net debt

Total equity

Total capital

Gearing ratio

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FINANCIAL REPORT  

Notes to the financial statements 

4. Critical Accounting Estimates

The preparation of the Financial Statements, in conformity 
with UK IASs, requires management to make estimates 
and assumptions that affect the reported amounts of 
assets and liabilities and disclosure of contingent assets 
and liabilities at the date of the Financial Statements and 
the reported amount of expenses during the year. Actual 
results may vary from the estimates used to produce these 
Financial Statements. 

Estimates and judgements are continually evaluated and are 
based on historical experience and other factors, including 
expectations of future events that are believed to be 
reasonable under the circumstances. 

Significant items subject to such estimates and 
assumptions include, but are not limited to:

a) Land and Mineral Reserves

The determination of fair values of land and mineral 
reserves are carried out by appropriately qualified persons 
in accordance with the Appraisal and Valuation standards 
published by the Royal Institution of Chartered Surveyors. 
The estimation of recoverable reserves is based upon 
factors such as estimates of commodity prices, future 
capital requirements and production costs along with 
geological assumptions and judgements.

The PPAs included the revaluation of land and minerals 
based on the estimated remaining reserves within St John’s, 
Les Vardes, Aberdo, Carrières du Hainaut, Harries and 
Nordkalk quarries. These are then valued based on the 
estimated remaining life of the mines and the net present 
value for the price per tonnage.

b )Estimated Impairment of Goodwill

The determination of fair values of assets acquired  
and liabilities assumed in a business combination involves 
the use of estimates and assumptions; such as discount 
rates used and valuation models applied as well as  
goodwill allocation.

Goodwill has a carrying value of £115.2 million as at 31 
December 2022 (31 December 2021: £293 million). The 
Group tests annually whether goodwill has suffered any 
impairment, in accordance with the accounting policy 
stated in Note 2.6 to the Financial Statements.

Management has concluded that an impairment charge 
was not necessary to the carrying value of goodwill for the 
period ended 31 December 2022 (31 December 2021: £nil). 
See Note 2.6 to the Financial Statements.

c) Restoration Provision

The Group’s provision for restoration costs has a carrying 
value at 31 December 2022 of £6.1 million (31 December 
2021: £4.3 million) and relate to the removal of the plant and 
equipment held at quarries in the Channel Islands, United 
Kingdom and Northern Europe. The cost of removal was 
determined by management for the removal and disposal 
of the machinery at the point of which the reserves are no 
longer available for business use.

The restoration provision is a commitment to restore the 
site to a safe and secure environment. The provisions are 
reviewed annually. 

d) Fair Value of Share Options

The Group has made awards of options and warrants 
over its unissued share capital to certain Directors and 
employees as part of their remuneration packages.

The valuation of these options and warrants involves making 
a number of critical estimates relating to price volatility, 
future dividend yields, expected life of the options and 
forfeiture rates. These assumptions have been described in 
more detail in Note 29 to the Financial Statements.

e) Valuation and timing of deferred consideration

As part of the acquisition of Harries, the Group has agreed 
to pay royalty payments over the next 10 years with a 
minimum total value of £10m. The estimated present value 
of these payments is £5.1m. In determining this value, 
management must make critical estimates as to the timing, 
value and cost of money of these payments. 

f) Recognition of deferred tax assets

Uncertainty exists related to the availability of future taxable 
profit against which tax losses carried forward can be used, 
however deferred tax assets are recognised for unused tax 
losses to the extent that it is probable that taxable profits 
will be available against which the losses can be utilised. 
Significant management judgement is required to determine 
the amount of deferred tax assets that can be recognised, 
based on the likely timing and level of future taxable 
profits, together with future tax planning strategies. Further 
information on income taxes is disclosed in Note 15.

g) Defined benefit obligations – actuarial assumptions 

The present value of the pension obligations is subject to 
actuarial assumptions used by actuaries to calculate these 
obligations. Actuarial assumptions include the discount rate, 
the annual rate of increase in future compensation levels 
and inflation rate. Further details on assumptions used are 
disclosed in Note 26.

h) Fair value of financial instruments

The fair values of financial instruments that cannot be 
determined based on quoted market prices and rates are 
established using different valuation techniques. The Group 
uses judgement to select methods and make assumptions 
that are mainly based on market conditions existing at the 
end of the reporting period. Factors regarding valuation 
techniques and their assumptions could affect the reported 
fair values. 

5. Dividends

No dividend has been declared or paid by the Company 
during the year ended 31 December 2022 (2021: nil).

S
T
R
A
T
E
G
C

I

G
O
V
E
R
N
A
N
C
E

I

F
N
A
N
C
A
L

I

I

A
D
D
T
O
N
A
L

I

I

N
F
O
R
M
A
T
O
N

I

6. Segment Information

Management has determined the operating segments based on reports reviewed by the Board of Directors that are used to 
make strategic decisions. During the periods presented the Group has three geographical regions, North West which comprises 
of PPG, England, Wales and Channel Islands; West which comprises of Dimension Stone and Benelux; and North East which 
comprises of Quicklime, Nordics, Poland and Baltics. Activities in the North West, West and North East regions relate to the 
production and sale of construction material products and services.

31 December 2022

North West 
£’000

West 
£’000

North East 
£’000

Total 
£’000

Revenue

Profit from operations per reportable segment

Additions to non-current assets

Reportable segment assets

Reportable segment liabilities

139,709

36,444

62,400

87,365

22,478

6,137

57,015

28,612

310,919

537,993

221,317

138,823

606,788

342,255

27,806

127,017

31 December 2021

North West 
£’000

West 
£’000

North East 
£’000

115,937

97,149

966,928

497,078

Total 
£’000

271,987

61,919

Revenue

Profit from operations per reportable segment

Additions to non-current assets

103,363

24,094

(6,527)

72,668

20,050

10,611

95,956

17,775

378,174

382,258

Reportable segment assets (restated)

166,641

119,631

495,570

781,842

Reportable segment liabilities (restated)

253,441

27,714

89,533

370,688

7. Revenue

Upstream products

Value added products

Value added services

Other

Consolidated

31 December  
2022 
£’000

31 December  
2021 
£’000

75,244

401,012

52,292

9,445

537,993

44,190

198,107

24,064

5,626

271,987

Upstream products revenue relates to the sale of aggregates and cement. Value added products is the sale of finished 
goods that have undertaken a manufacturing process within each of the subsidiaries. Value added services consists of the 
transportation, installation and contracting services provided.

All revenues from upstream and value added products relate to products for which revenue is recognised at a point in time as 
the product is transferred to the customer. Value added services revenues are accounted for as products and services for which 
revenue is recognised over time.

The Group contract revenue for the year ended 31 December 2022 was £24.9 million.

8. Expenses by Nature

Cost of sales

Changes in inventories of finished goods and work in progress

Raw materials & production

Distribution & selling expenses

Consolidated

31 December 
2022 
£’000

31 December 
2021 
£’000

9,003

198,984

43,671

10,854

75,452

18,622

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FINANCIAL REPORT  

Notes to the financial statements 

Employees & contractors

Maintenance expense

Plant hire expense

Depreciation & amortisation expense

Other costs of sale

Total cost of sales

Administrative expenses

Operational admin expenses

Corporate admin expenses

Total administrative expenses

71,936

21,543

6,449

30,085

40,385

48,698

12,556

5,374

17,156

21,356

422,056

210,068

42,455

22,815

65,270

30,175

27,351

57,526

Corporate administrative expenses include £14.1 million of non-underlying expenses (refer to Note 11).

During the year the Group (including its overseas subsidiaries) obtained the following services from the Company’s auditors and 
its associates:

Fees payable to the Company’s auditor and its associates for the audit of the Company 
and Consolidated Financial Statements

Fees payable to the Company’s auditor and its associates for tax services

Fees paid or payable to the Company’s auditor and its associates for due diligence and 
transactional services associated with the readmission of the Company trading on AIM

Fees paid to the Company’s auditor for other services

Consolidated

31 December 
2022 
£’000

31 December 
2021 
£’000

414

-

117

-

531

360

-

300

-

660

9. Employee Benefits Expense

Staff costs (excluding directors)

Salaries and wages

Post-employment benefits

Social security contributions and similar taxes

Other employment costs

Average number of FTE employees by function

Management

Operations

Administration

Consolidated

Company

31 
December 
2022 
£’000

31 
December 
2021 
£’000

31 
December 
2022 
£’000

31 
December 
2021 
£’000

87,682

54,071

2,990

2,104

250

1,891

8,594

278

1,679

8,436

28

329

2

80

386

17

98,417

64,464

3,349

2,587

Consolidated

Company

31 
December 
2022

31 
December 
2021

31 
December 
2022

31 
December 
2021

69

1,550

426

2,045

85

1,371

409

1,865

6

-

4

10

5

-

4

9

S
T
R
A
T
E
G
C

I

G
O
V
E
R
N
A
N
C
E

I

F
N
A
N
C
A
L

I

I

A
D
D
T
O
N
A
L

I

I

N
F
O
R
M
A
T
O
N

I

Total 
£’000

859

899

1,144

50

55

50

34

3,091

Total 
£’000

902

401

1,223

65

134

47

43

31 December 2022

Directors’ 
fees 
£’000

Bonus 
£’000

Taxable 
benefits 
£’000

Pension 
benefits 
£’000

Options 
issued  
£’000

375 

375

475

50

50

50

34

469

469

594

-

-

-

-

15

15

15

-

-

-

-

-

40

60

-

5

-

-

1,409

1,532

45

105

-

-

-

-

-

-

-

-

31 December 2021

Directors’ 
fees 
£’000

Bonus 
£’000

Taxable 
benefits 
£’000

Pension 
benefits 
£’000

Options 
issued4 
£’000

10. Directors’ Remuneration

Executive Directors

David Barrett

Garth Palmer 

Max Vermorken

Non-executive Directors

Timothy Hall 

Simon Chisholm 

Jacques Emsens

Axelle Henry1

Executive Directors

David Barrett 

Garth Palmer2

Max Vermorken

Non-executive Directors

Timothy Hall 

Dean Masefield3

Simon Chisholm 

Jacques Emsens

358

151

456

43

120

43

43

469

180

594

-

-

-

-

1,214

1,243

14

5

14

-

6

-

-

39

-

13

30

-

8

4

-

55

61

52

129

22

-

-

-

264

2,815

1 Appointed on 26 April 2022.
2  Garth Palmer was reappointed as CFO on 31 August 2021. His bonus was performance based for the period 31 August 2021 to 31 
December 2021. 
3  Resigned on 31 August 2021.
4 Options issued relate to options granted in the 2019 financial year and vesting in the 2021 financial year. 

The bonuses earned in the year by the Directors reflect the performance of the business, were based on industry standard criteria 
taking into account external market data, were recommended by the Remuneration Committee and approved by the Board.

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S
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R
A
T
E
G
C

I

G
O
V
E
R
N
A
N
C
E

I

F
N
A
N
C
A
L

I

I

A
D
D
T
O
N
A
L

I

I

N
F
O
R
M
A
T
O
N

I

FINANCIAL REPORT  

Notes to the financial statements 

11. Non-underlying Items

13. Other Net Gains/(Losses)

Acquisition related expenses 

Amortisation and remeasurement of acquired assets

Amortisation of finance costs

Restructuring expenses

Innovation

Discontinued operations

Share option expense

Unwinding of discount on deferred consideration

Net other non-underlying expenses & gains 

Consolidated

31 December  
2022 
£’000

4,345

6,761

1,085

1,780

497

97

4,670

443

335

31 December  
2021 
£’000

20,125

1,888

784

2,334

-

169

2,321

825

614

20,013

29,060

Under IFRS 3 – Business Combinations, acquisition costs 
have been expensed as incurred. Additionally, the Group 
incurred costs associated with obtaining debt financing, 
including advisory fees to restructure the Group to satisfy 
lender requirements.

Acquisition related expenses include costs relating to the due 
diligence of prospective pipeline acquisitions, stamp duty 
on completed acquisitions, warranty & indemnity insurance 
and other direct costs associated with merger & acquisition 
activity. During the year the Group acquired Johnston Quarry 
Group, RightCast and La Belonga and undertook due 
diligence on numerous other prospective acquisitions.

Amortisation and remeasurement of acquired assets are 
non-cash items which distort the underlying performance of 
the businesses acquired. Amortisation of acquired assets 
arise from certain fair value uplifts resulting from the PPA. 
Remeasurement of acquired assets arises from ensuring assets 
from acquisitions are depreciated in line with Group policy. 

associated with site optimisation, transitional salary costs, 
redundancies, severance & recruitment fees, and costs 
associated with financial reporting and system migrations. 

Share option expense is the fair value of the share options 
issued during the year and also includes fair value adjustment 
in 2022 resulting from changes to certain option exercise 
dates, refer to Note 29 more information.

Unwinding of discount on deferred consideration is a  
non-cash adjustment relating to deferred consideration 
arising on acquisitions. 

Amortisation of finance costs is the amortisation of borrowing 
costs on the Syndicated Senior Credit Facility. These costs 
are amortised over a 5-year period.

Discontinued operations include the trading expenses, stock 
adjustments and redundancies incurred at the Bury site for 
the period from January 2022 to December 2022. Refer to 
Note 14 for more information.

Restructuring expenses relate to the reorganisation and 
integration of recently acquired subsidiaries, including costs 

Net other non-underlying expenses and gains include other 
advisory fees and other associated costs.

12. Net Finance (Expense)/Income

Net interest expense

Dividends

Other finance expense

Unwinding of discount on deferred consideration

Consolidated

31 December  
2022 
£’000

(9,557)

647

(1,085)

(443)

(10,438)

31 December  
2021  
£’000

(5,066)

37

(1,145)

(825)

(6,999)

Gain/(losses) on disposal of property, plant and equipment

Other gain/(loss)

Gain/(loss) on call options 

Impairment

Share of earnings from joint ventures

Forex movement

14. Discontinued Operations

Consolidated

31 December  
2022 
£’000

31 December  
2021 
£’000

1,471

20

248

(30)

786

-

2,495

(101)

730

632

(2,006)

291

788

334

From due diligence undertaken as part of the acquisition of CCP in January 2019, doubts existed over the viability of the 
flagging & paving division at its site in Bury. After a detailed review it was determined that the business unit was loss making and 
it was decided that the operations at this site be discontinued effective from 1 February 2019.

Financial information relating to the discontinued operation for the period is set out below. 

Income statement

Revenue 

Cost of sales

Gross profit

Administration 

Other expenses

Loss from discontinued operation

Basic earnings per share attributable to owners of the parent  
(expressed in pence per share)

Cash movement

Net cash outflow from operating activities 

Net cash inflow from investing activities

Net cash inflow from financing activities

Net increase / (decrease) in cash generated by the subsidiary

31 December  
2022  
£’000

31 December  
2021 
£’000

-

-

-

(97)

-

(97)

(0.04)

-

-

-

(169)

-

(169)

(0.04)

31 December  
2022  
£’000

31 December  
2021 
£’000

-

-

-

-

(62)

-

-

(62)

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S
T
R
A
T
E
G
C

I

G
O
V
E
R
N
A
N
C
E

I

F
N
A
N
C
A
L

I

I

A
D
D
T
O
N
A
L

I

I

N
F
O
R
M
A
T
O
N

I

FINANCIAL REPORT 

Notes to the financial statements 
15. Taxation

16. Property, Plant and Equipment

Consolidated

Cost

Consolidated

Office 
Equipment 
£’000

Land 
and 
minerals 
£’000

Land and 
buildings 
£’000

Plant and 
machinery 
£’000

Right of 
use 
£’000

Construction 
in progress 
£’000

Total 
£’000

Vehicles

Tax recognised in profit or loss

Current tax

Deferred tax

Total tax charge in the Income Statement

31 December 
2022 
£’000

31 December 
2021 
£’000

(6,960)

(2,182)

(9,142)

(4,529)

(170)

(4,699)

The tax on the Group’s profit/(loss) before taxation differs from the theoretical amount that would arise using the weighted 
average tax rate applicable to the profits/(losses) of the consolidated entities as follows:

Profit/(loss) on ordinary activities before tax

Tax on profit on ordinary activities at standard CT rate
Effects of:

Expenditure not deductible for tax purposes

Deferred tax not recognised

Remeasurement of deferred tax for changes in tax rates

Income not taxable for tax purposes

Prior year adjustments

Depreciation in excess of/(less than) capital allowances

Tax losses

Tax charge

Consolidated

31 December 
2022 
£’000

31 December 
2021 
£’000

42,723

9,806

1,119

274

214

(2,016)

(785)

347

183

9,142

(2,272)

494

4,874

1,268

(120)

(903)

(864)

(61)

11 

4,699

The weighted average applicable tax rate of 18.26% (2021: 21.74%) used is a combination of the standard rate of corporation 
tax rate for entities in the United Kingdom of 19% (2021: 19%), 20% on quarrying of minerals and rental property (2021: 20%) in 
Jersey and Guernsey, 25% (2021: 25%) in Belgium, 20% (2021: 20%) in Finland, 20.6% (2021: 20.6%) in Sweden, 19% (2021: 
19%) in Poland and 20% (2021: 20%) in Estonia. 

Deferred Tax Asset

At 1 January 2022

Acquisition of subsidiary

Charged/(credited) directly to equity 

At 31 December 2022

Tax losses

-

-

-

-

Deferred Tax Liability

Tax losses

As at 1 January 2022 (as previously stated)

Prior year adjustment - refer to Note 39

As at 1 January 2022 (as restated)

Acquisition of subsidiary

Arising on fair value adjustments on PPA

Charged/(credited) directly to income statement

At 31 December 2022

(128)

-

(128)

-

-

-

(128)

Temporary timing 
differences
3,129

-

1,295

4,424

Temporary timing 
differences 
5,318

12,527

17,845

827

47,127

2,933

68,732

Total

3,129

-

1,295

4,424

Total

5,190

12,527

17,717

827

47,127

2,933

68,604

As at 1 January 2021

4,225

104,379

45,949

98,498

24,537

Acquired through 
acquisition

Transfer between classes

Fair value adjustment

Additions

Disposals

Forex

As at 31 December 
2021

210

81,482

70,622

193,425

-

-

364

-

-

3,433

3,324

(190)

1,149

1,539

3,768

(592)

(206)

(2,461)

(1,202)

(122)

-

9,944

(7,764)

(4,063)

4,593

189,967

121,233

289,918

As at 1 January 2022

4,593

189,967

121,233

289,918

3,813

342

-

2,294

(6,008)

(383)

24,595

24,595

-

-

-

-

-

-

-

-

1,247

278,835

10,504

360,056

(1,369)

-

-

4,972

2,861

22,555

-

-

(14,554)

(8,315)

13,243

643,549

13,243

643,549

Acquired through 
acquisition

Transfer between classes

Fair value adjustment

Additions

Disposals

Forex

As at  
31 December 2022

Depreciation

157

-

-

222

(56)

177

-

74

211,629

2,051

(468)

2,881

20,601

(5,722)

10,508

15,160

(4,525)

653

15,294

227

2,052

38

38,369

(24,217)

(2,350)

35,014

(2,799)

-

12,450

24,274

(2,888)

10,382

3

-

-

234,590

1,491

5,926

1,884

51,008

(2,356)

(2,862)

-

(13,156)

915

(696)

(671)

13,642

5,093

406,134

157,908

325,213

22,525

39,434

11,695

968,002

As at 1 January 2021

3,817

11,373

25,084

76,737

17,031

Transfer between classes

Acquired through 
acquisition

Charge for the year

Disposals

Impairment

Forex

As at  
31 December 2021

As at 1 January 2022

Transfer between classes

Acquired through 
acquisition

Charge for the year

Disposals

Forex

-

-

-

-

-

-

-

-

-

-

(309)

309

57,487

40,927

149,510

2,396

3,423

10,038

(7,298)

684

(3,088)

3,114

1,635

(3,087)

-

(770)

-

150

267

-

-

-

-

(194)

(1,082)

4,040

4,040

-

77

208

(55)

170

70,174

70,174

-

-

6,548

-

3,179

(592)

380

(829)

68,393

68,393

(1,850)

8,693

5,139

(91)

1,098

226,274

226,274

18,232

18,232

(14,533)

(1,101)

17,484

7,588

14,996

(1,597)

6,580

32

392

1,303

6,257

(1,742)

613

(907)

(780)

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

134,042

-

251,188

17,759

(10,977)

1,064

(5,963)

387,113

387,113

-

16,782

34,451

(4,392)

10,860

444,814

As at 31 December 2022

4,440

79,901

81,382

239,308

17,337

22,446

Net book value

As at  
31 December 2021

As at  
31 December 2022

553

119,793

52,840

63,644

6,363

-

13,243

256,436

653

326,233

76,526

85,905

5,188

16,988

11,695

523,188

Deferred income tax assets of £4.4 million (2021: £3.1 million) are recognised to the extent that the realisation of related tax 
benefits through future taxable profits is probable. Deferred tax liabilities of £68.6 million (2021: 5.2 million) are recognised in full. 

The transfer between classes relates to reclassing the assets which are right of use assets. 

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FINANCIAL REPORT  

Notes to the financial statements 

Cost

As at 1 January 2021

Additions

Disposals

As at 31 December 2021

As at 1 January 2022

Transfer between classes

Fair value adjustment

Additions

Disposals

As at 31 December 2022

Depreciation

As at 1 January 2021

Charge for the year

Disposals

As at 31 December 2021

As at 1 January 2022

Transfer between classes

Charge for the year

Disposals

As at 31 December 2022

Net book value

As at 31 December 2021

As at 31 December 2022

Company

Office 
Equipment 
£’000

Land & 
Buildings 
£’000

Right of 
use 
£’000

Motor 
Vehicle 
£’000

Total 
£’000

30

215

-

245

245

-

-

14

-

259

22

28

-

50

50

-

50

-

100

195

159

54

211

-

265

265

(265)

-

-

-

-

27

13

-

40

40

(40)

-

-

-

225

-

25

-

-

25

25

(25)

-

-

-

-

8

8

-

16

16

(16)

-

-

-

9

-

-

-

-

-

-

290

(68)

-

-

222

-

-

-

-

-

56

68

-

124

-

98

109

426

-

535

535

-

(68)

14

-

481

57

49

-

106

106

-

118

-

224

429

257

17. Intangible Assets

Consolidated

Goodwill 
£’000

Customer 
Relations 
£’000

Intellectual 
property 
£’000

Research & 
Development 
£’000

Branding 
£’000

Other 
Intangibles 
£’000

Total 
£’000

Cost & net book value

As at 1 January 2021

39,966

3,333

471

1,237

3,398

Additions

Additions through business 
combination

Price Purchase Allocation – 
Harries

Amortisation

Impairment

Forex

As at 31 December 2021

As at 1 January 2022  
(As previously stated)

Prior year adjustment – refer  
to note 39

As at 1 January 2022  
(As restated)

Additions

Additions through business 
combination

Price Purchase Allocation – 
B-Mix

Price Purchase Allocation – 
Nordkalk

Amortisation

Forex

As at 31 December 2022

- 

260,944

(4,098)

-

-

(3,373)

293,439

293,439

-

-

-

-

-

-

(517)

(85)

-

-

2,816

2,816

-

-

386

386

-

-

331

-

(594)

(400)

(3)

571

571

-

-

-

(160)

-

-

3,238

3,238

400

62

48,805

62

6,387 

267,663

-

-

(400)

(463)

(4,098)

(1,356)

(800)

(3,839)

5,986

306,436

5,986

306,436

12,527

-

-

-

-

12,527

305,966

2,816

386

571

3,238

5,986

318,963

-

89,096

(4,429)

-

-

-

(233,955)

3,795

-

17,147

173,825

(826)

-

5,785

-

-

-

-

(85)

-

301

I

N
F
O
R
M
A
T
O
N

I

-

-

-

-

-

-

-

-

1,713

-

-

-

1,713

89,096

(4,429)

(230,160)

(87)

-

484

(160)

(1,507)

-

210

(2,665)

17,357

3,078

6,402

189,875

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An adjustment has been made to reflect the initial 
accounting for the acquisition of B-Mix and Nordkalk by 
the Company, being An adjustment has been made to 
reflect the initial accounting for the acquisition of B-Mix 
and Nordkalk by the Company, being the elimination of the 
investment in B-Mix and Nordkalk against the non-monetary 
assets acquired and recognition of goodwill. In 2022, 
the Company determined the fair value of the net assets 
acquired pursuant to the acquisition of B-Mix and Nordkalk, 
via a Purchase Price Allocation (‘PPA’) exercise. For B-Mix, 
the PPA determined a decrease of £4.4 million of goodwill 
with the corresponding movement to uplift the value of the 
Land and Buildings. For Nordkalk, the PPA determined a 
decrease of £234 million of goodwill with the corresponding 
movement to uplift the value of the Customer relations, 
Vehicles, Land and Buildings and Land and Minerals.

The goodwill total is made up of £40.2 million for Johnston, 
£81.3 million for Nordkalk, £24.7 million for the PPG 
Platform, £3.7 million for the Benelux platform, £16.7 million 
for Dimension Stone, £3.2 million for Harries, £3.7 million for 
the Ronez and £327,000 for La Belonga.

The intangible asset classes are:

 –  Goodwill is the excess of the consideration transferred 

and the acquisition date fair value of any previous equity 
interest in the acquire over the fair value of the net 
identifiable assets.

 –  Customer relations is the value attributed to the key 

customer lists and relationships.

 –  Intellectual property is the patents owned by the Group.

 –  Research and development is the acquiring of new 
technical knowledge and trying to improve existing 
processes or products or; developing new processes or 
products.

 –  Branding is the value attributed to the established 

company brand.

 –  Other intangibles consist of capitalised development 

costs for assets produced that assist in the operations of 
the Group and incur revenue.

Amortisation of intangible assets is included in cost of sales 
on the Income Statement. Development costs have been 
capitalised in accordance with the requirements of IAS 38 
and are therefore not treated, for dividend purposes, as a 
realised loss.

178

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SigmaRoc PLC

SigmaRoc PLC

Invest, Improve, Integrate and Innovate

179

 
FINANCIAL REPORT  

Notes to the financial statements 

Impairment tests for goodwill

Goodwill arising on business combinations is not amortised 
but is reviewed for impairment on an annual basis, or more 
frequently if there are indications that the goodwill may be 
impaired. Goodwill is allocated to groups of cash generating 
units according to the level at which management monitor 
that goodwill, which is at the level of operating segments.

The sixteen operating segments are considered to be 
Ronez in the Channel Islands; Topcrete, Poundfield, CCP, 
RightCast, Harries and Johnston in the UK; CDH, Stone, 
GduH and B-Mix in Belgium; and Quicklime, Nordics, 
Baltics and Poland in Northern Europe. 

Key assumptions

The key assumptions used in performing the impairment 
review are set out below:

Cash flow projections

Cash flow projections for each operating segment are 
derived from the annual budget approved by the Board  
for 2023 and the five year plan to 2027. The key 
assumptions on which budgets and forecasts are based 
include sales volumes, product mix and operating costs. 
These cash flows are then valued using a discounted 

cashflow model, with a terminal value based on a 
perpetuity growth model. Budgeted cash flows are based 
on past experience and forecast future trading conditions. 
Budgeted cash flows are based on past experience and 
forecast future trading conditions.

Long-term growth rates

Cash flow projections are prudently based on 2% and 
therefore provides plenty of headroom.

Discount rate

Forecast cash flows for each operating segment have been 
discounted at rates of 10%; which was calculated based on 
market participants’ cost of capital and adjusted to reflect 
factors specific to each operating segment.

Sensitivity

The Group has applied sensitivities to assess whether any 
reasonable possible changes in assumptions could cause 
an impairment that would be material to these consolidated 
Financial Statements. This demonstrated that a 1% increase 
in the discount rate would not cause an impairment and the 
annual growth rate is assumed to be 2%.

The Directors have therefore concluded that no impairment 
to goodwill is necessary.

18. Investment in Subsidiary Undertakings

Shares in subsidiary undertakings

At beginning of the year

Additions

Disposals

At period end

Loan to/(from) Group undertakings

Total

Investments in Group undertakings are stated at cost less impairment. 

Company

31 December  
2022 
£’000

31 December  
2021 
£’000

435,085

47,537

-

482,622

100,799

583,421

120,039

315,046

-

435,085

119,110

554,195

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Details of subsidiaries at 31 December 2022 are as follows:

Country of 
incorporation

Share capital 
held by 
Company

Share 
capital held 
by Group

Name of subsidiary

SigmaFin Limited

Foelfach Stone Limited

SigmaGsy Limited

Ronez Limited

Pallot Tarmac (2002) Limited

Island Aggregates Limited

Topcrete Limited

A. Larkin (Concrete) Limited

Allen (Concrete) Limited

Poundfield Products (Group) Limited

Poundfield Products (Holdings) Limited

Poundfield Innovations Limited

Poundfield Precast Limited

Greenbloc Limited

CCP Building Products Limited

Cheshire Concrete Products Limited

Clwyd Concrete Products Limited

Country Concrete Products Limited

CCP Trading Limited

CCP Aggregates Limited

CDH Développement SA

Carrières du Hainaut SCA

Granulats du Hainaut SA

CDH Management 2 SPRL

GDH (Holdings) Limited

Gerald D. Harries & Sons Limited

GD. Harries & Sons Limited

Stone Holding Company SA

Cuvelier Philippe SA

B-Mix Beton NV

J&G Overslag en Kraanbedrijf BV

Top Pomping NV

Nordkalk Oy Ab

Nordkalk AB

England

England

Guernsey

Jersey

Jersey

Guernsey

England

England

England

England

England

England

England

England

England

England

England

England

England

England

Belgium

Belgium

Belgium

Belgium

England

England

England

Belgium

Belgium

Belgium

Belgium

Belgium

Finland

Sweden

Kalkproduktion Storugns AB

Sweden

Nordkalk AS

Estonia

£45,181,877

£1

£1

Principal activities

Holding company

Construction materials

Shipping logistics

£2,500,000

Construction materials

£2

Road contracting services

£6,500

Waste recycling

£926,828

Pre-cast concrete 
producer

£37,660

Dormant

£100

Holding company

£651

£6,357

£63,568

£1

£1

£100

£100

£100

Holding company

Holding company

Patents & licencing

Pre-cast concrete 
producer

Dormant

Construction materials

Dormant

Dormant

Dormant

Dormant

£22,167

£50

£100,000

Construction materials

€23,660,763

Holding company

€16,316,089 Construction materials

€62,000

International marketing

€760,000

Holding company

£54,054

Construction materials

£112

£1

€100

€750

Construction materials

Dormant

Construction materials

Construction materials

€680,600

Concrete producer

€18,600

Concrete producer

€62,000

Concrete producer

€1,000,000

€2,439,000

€293,000

€959,000

Limestone quarrying and 
processing

Limestone quarrying and 
processing

Limestone quarrying and 
processing

Limestone quarrying and 
processing

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SigmaRoc PLC

SigmaRoc PLC

Invest, Improve, Integrate and Innovate

181

 
FINANCIAL REPORT 

Notes to the financial statements 

Name of subsidiary

Nordkalk GmbH

Nordkalk Sp.z o.o

Suomen Karbonaatti Oy

NKD Holding Oy Ab

Nordeka Maden A.S

Baltic Aggregates Oy

NK – East Oy

Nordkalk Ukraine TOV

Nordkalk Prykarpattya TOV

Johnston Quarry Group Limited

Building Stone Limited

CSSL No.2 Limited

Guiting Quarry Limited

Bath Stone Group Limited

Monks Park Minerals Limited

Stoke Hill Minerals Limited

The Bath Stone Company Limited

Hartham Park Minerals Limited

Costwold Stone Sales Limited

Flick Quarry Limited

Creeton Quarry Limited

Oathill Quarry Limited

Ropsley Quarry Limited

Righcast Limited

Canteras La Belonga SA

Country of 
incorporation

Germany

Poland

Finland

Finland

Turkey

Finland

Finland

Ukraine

Ukraine

England

England

England

England

England

England

England

England

England

England

England

England

England

England

England

Spain

Share capital 
held by 
Company

Share 
capital held 
by Group

Principal activities

€50,000

Limestone quarrying and 
processing

€19,637,000 Limestone quarrying and 
processing

€2,102,000

Limestone quarrying and 
processing

€3,000

Holding company

€1,020,000

Limestone quarrying and 
processing

€1

Crushing stone

€8,869

Holding company

€539

€308

£190

£1

£1

£100

£110

£1

Mining rights

Dormant

Holding company

Stone producing

Dormant

Construction materials

Holding company

Dormant

£13,620

Minerals rights

£1

£1

£1

£1

£100

£1

£100

£103

Construction materials

Dormant

Dormant

Dormant

Dormant

Dormant

Dormant

Name of subsidiary

Registered office address

SigmaFin Limited

6 Heddon Street, London W1B 4BT

Foelfach Stone Limited

6 Heddon Street, London W1B 4BT

SigmaGsy Limited

Les Vardes Quarry, Route de Port Grat, St Sampson, Guernsey, GY2 4TF

Ronez Limited

Ronez Quarry, La Route Du Nord, St John, Jersey, JE3 4AR

Pallot Tarmac (2002) Limited

Ronez Quarry, La Route Du Nord, St John, Jersey, JE3 4AR

Island Aggregates Limited

Les Vardes Quarry, Route de Port Grat, St Sampson, Guernsey, GY2 4TF

Topcrete Limited

38 Willow Lane, Mitcham, Surrey, CR4 4NA

A. Larkin (Concrete) Limited

38 Willow Lane, Mitcham, Surrey, CR4 4NA

Allen (Concrete) Limited

38 Willow Lane, Mitcham, Surrey, CR4 4NA

Poundfield Products (Group) Limited

The Grove, Creeting St. Peter, Ipswich, England, IP6 8QG

Poundfield Products (Holdings) 
Limited

The Grove, Creeting St. Peter, Ipswich, England, IP6 8QG

Poundfield Innovations Limited

The Grove, Creeting St. Peter, Ipswich, England, IP6 8QG

Poundfield Precast Limited

The Grove, Creeting St. Peter, Ipswich, England, IP6 8QG

Greenbloc Limited

The Grove, Creeting St. Peter, Ipswich, England, IP6 8QG

CCP Building Products Limited

Llay Road, Llay, Wrexham, Clwyd, LL12 0TL

Cheshire Concrete Products Limited

Llay Road, Llay, Wrexham, Clwyd, LL12 0TL

Clwyd Concrete Products Limited

Llay Road, Llay, Wrexham, Clwyd, LL12 0TL

Country Concrete Products Limited

Llay Road, Llay, Wrexham, Clwyd, LL12 0TL

CCP Trading Limited

Llay Road, Llay, Wrexham, Clwyd, LL12 0TL

CCP Aggregates Limited

Llay Road, Llay, Wrexham, Clwyd, LL12 0TL

CDH Développement SA

Rue de Cognebeau 245, B-7060 Soignies, Belgium

Carrières du Hainaut SCA

Rue de Cognebeau 245, B-7060 Soignies, Belgium

Granulats du Hainaut SA

Rue de Cognebeau 245, B-7060 Soignies, Belgium

CDH Management 2 SPRL

Rue de Cognebeau 245, B-7060 Soignies, Belgium

GDH (Holdings) Limited

Rowlands View, Templeton, Narbeth, SA67 8RG

Gerald D. Harries & Sons Limited

Rowlands View, Templeton, Narbeth, SA67 8RG

GD Harries & Sons Limited

6 Heddon Street, London W1B 4BT

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Concrete manufacturer

Stone Holding Company SA

Avenue Louise 292, BE-1050 Ixelles, Belgium

€273,575

Construction materials

Cuvelier Philippe SA

Avenue Louise 292, BE-1050 Ixelles, Belgium

B-Mix Beton NV

Kanaalweg 110, B-3980 Tessenderlo, Belgium

J&G Overslag en Kraanbedrijf BV

Kanaalweg 110, B-3980 Tessenderlo, Belgium

Top Pomping NV

Nordkalk Oy Ab

Nordkalk AB

Kanaalweg 110, B-3980 Tessenderlo, Belgium

Skräbbölentie 18, FI-21600, Parainen, Finland

Box 901, 731 29 Köping

Kalkproduktion Storugns AB

Strugns, 620 34 Lärbro

Nordkalk AS

Nordkalk GmbH

Lääne-Viru maakond, Väike- Maarja vald, Rakke alevik, F.R Faehlmanni tee 11a, 46301

Innungsstrabe 7, 21244 Buchholz in der Nordheide

Nordkalk Sp.z o.o

ul. Plac Na Groblach, nr 21, lok. Miejsc, Krakow, kod 31-101, poczta, Krakow, kraj Polska

Suomen Karbonaatti Oy

Ihalaisen teollisuusalue, 53500 Lappeenranta

NKD Holding Oy Ab

Skräbbölentie 18, 21600 Parainen, Finland

182

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SigmaRoc PLC

SigmaRoc PLC

Invest, Improve, Integrate and Innovate

183

 
FINANCIAL REPORT  

Notes to the financial statements 

Name of subsidiary

Registered office address

Nordeka Maden A.S

Levent MH.Cömert Sk. Yapi Kredi Blokl.c Blok no.1 c/17 Besiktas

Baltic Aggregates Oy

Skräbbölentie 18, FI-21600, Parainen, Finland

NK – East Oy

Skräbbölentie 18, FI-21600, Parainen, Finland

Nordkalk Ukraine TOV

Ivana Makukha st. 14, 78000, Ivano-Frankivsk Oblast, Tlumach, Ukraine

Nordkalk Prykarpattya TOV

Galytska st 10, 7600 Ivano-Frankivsk, Ukraine

Johnston Quarry Group Limited

Westfield Lodge Butchers Hill, Great Tew, Chipping Norton, Oxfordshire, England, OX7 4AD

Building Stone Limited

CSSL No.2 Limited

Guiting Quarry Limited

Westfield Lodge Butchers Hill, Great Tew, Chipping Norton, Oxfordshire, England, OX7 4AD

Westfield Lodge Butchers Hill, Great Tew, Chipping Norton, Oxfordshire, England, OX7 4AD

Westfield Lodge Butchers Hill, Great Tew, Chipping Norton, Oxfordshire, England, OX7 4AD

Bath Stone Group Limited

Westfield Lodge Butchers Hill, Great Tew, Chipping Norton, Oxfordshire, England, OX7 4AD

Monks Park Minerals Limited

Westfield Lodge Butchers Hill, Great Tew, Chipping Norton, Oxfordshire, England, OX7 4AD

Stoke Hill Minerals Limited

Westfield Lodge Butchers Hill, Great Tew, Chipping Norton, Oxfordshire, England, OX7 4AD

The Bath Stone Company Limited

Westfield Lodge Butchers Hill, Great Tew, Chipping Norton, Oxfordshire, England, OX7 4AD

Hartham Park Minerals Limited

Westfield Lodge Butchers Hill, Great Tew, Chipping Norton, Oxfordshire, England, OX7 4AD

Costwold Stone Sales Limited

Westfield Lodge Butchers Hill, Great Tew, Chipping Norton, Oxfordshire, England, OX7 4AD

Flick Quarry Limited

Creeton Quarry Limited

Oathill Quarry Limited

Ropsley Quarry Limited

Westfield Lodge Butchers Hill, Great Tew, Chipping Norton, Oxfordshire, England, OX7 4AD

Westfield Lodge Butchers Hill, Great Tew, Chipping Norton, Oxfordshire, England, OX7 4AD

RightCast Limited

Unit W4 Junction 38 Business Park, Darton, Barnsley, South Yorkshire, S75 5QQ

Canteras La Belonga SA

Oviedo, Cellagu-Latores, 33193, Spain

For the year ended 31 December 2022 the following 
subsidiaries were entitled to exemption from audit under 
section 479A of the Companies Act 2006 related to the 
following subsidiary companies:

 –  SigmaFin Limited

 –  Foelfach Stone Limited

 –  Topcrete Limited

 –  A. Larkin (Concrete) Limited

 –  Allen (Concrete) Limited
 –  Poundfield Products (Group) Limited
 –  Poundfield Products (Holdings) Limited
 –  Poundfield Innovations Limited
 –  Poundfield Precast Limited 
 –  Greenbloc Limited

 –  CCP Building Products Limited

 –  Cheshire Concrete Products Limited

 –  Clwyd Concrete Products Limited

 –  Country Concrete Products Limited

 –  CCP Trading Limited

 –  CCP Aggregates Limited

 –  GDH (Holdings) Limited

 –  Gerald D. Harries & Sons Limited

 – GD Harries & Sons Limited

 –  Johnston Quarry Group Limited

 –  Building Stone Limited

 –  CSSL No.2 Limited

 –  Guiting Quarry Limited

 –  Bath Stone Group Limited

 –  Monks Park Minerals Limited

 –  Stoke Hill Minerals Limited

 –  The Bath Stone Company Limited

 –  Hartham Park Minerals Limited

 –  Costwold Stone Sales Limited

 –  Flick Quarry Limited

 –  Creeton Quarry Limited

 –  Oathill Quarry Limited

 –  Ropsley Quarry Limited

 –  RightCast Limited

Impairment review

The performance of all companies for the year ended 31 
December 2022 are in line with forecasted expectations and 
as such there have been no indications of impairment.

19. Investment in Equity Accounted Associates & Joint Ventures

Nordkalk has a joint venture agreement with Franzefoss Minerals AS, managing a lime kiln located in Norway which was entered 
into on 5 August 2004. NorFraKalk AS is the only joint agreement in which the Group participates. 

The Group has one non-material local associate in Pargas, Pargas Hyreshus Ab. 

Interests in associates

Interest in joint venture

31 December 2022 
£’000

31 December 2021 
£’000

576

5,942

6,518

524

5,134

5,658

Proportion of ownership  
interest held

Name

Country of incorporation

31 December 2022

31 December 2021

NorFraKalk AS

Norway

50%

50%

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Summarised financial information

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Revenues

Profit after tax from continuing operations

I

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31 December 
2022 
£’000

31 December 
2021 
£’000

8,815

7,338

3,388

1,872

21,413

10,184

6,507

3,989

2,621

23,301

For the period 
1 January 2022 
to 31 December 
2022 
£’000

For the period 
1 September 
2021 to 31 
December 2021 
£’000

20,055

1,602

5,694

442

Westfield Lodge Butchers Hill, Great Tew, Chipping Norton, Oxfordshire, England, OX7 4AD

Westfield Lodge Butchers Hill, Great Tew, Chipping Norton, Oxfordshire, England, OX7 4AD

NorFraKalk AS - Cost and net book value

184

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SigmaRoc PLC

SigmaRoc PLC

Invest, Improve, Integrate and Innovate

185

 
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A
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A
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FINANCIAL REPORT  

Notes to the financial statements 

20. Trade and Other Receivables

22. Cash and Cash Equivalents

Trade receivables

Prepayments

Other receivables

Non-current

Other receivables

Consolidated

Company

31 December 
2022 
£’000

31 December 
2021 
£’000

31 December 
2022 
£’000

31 December 
2021 
£’000

78,879

4,917

3,009

86,805

4,259

4,259

66,166

3,598

3,490

73,254

4,759

4,759

2,555

358

255

3,168

-

-

1,787

346

757

2,890

-

-

The carrying value of trade and other receivables classified as loans and receivables approximates fair value. 

The carrying amounts of the Group and Company’s trade and other receivables are denominated in the following currencies:

Consolidated

Company

31 December 
2022 
£’000

31 December 
2021 
£’000

31 December 
2022 
£’000

31 December 
2021 
£’000

21,479

49,112

13,945

5,803

-

725

-

18,731

38,435

14,976

5,088

7

666

110

3,168

2,890

-

-

-

-

-

-

-

-

-

-

-

-

UK Pounds

Euros

Swedish Krona

Zlotys

Ukrainian Hryvnia

Turkish Lira

Russian Ruble

Other classes of financial assets included within trade and other receivables do not contain impaired assets.

The maximum exposure to credit risk at the reporting date is the carrying value of each class of receivable mentioned above. 
The Group does not hold any collateral as security.

91,064

78,013

3,168

2,890

21. Inventories

Cost and net book value

Raw materials and consumables

Finished and semi-finished goods

Work in progress

Consolidated

31 December  
2022 
£’000

31 December  
2021 
£’000

26,104

36,187

5,489

67,780

18,642

22,543

3,345

44,530

The value of inventories recognised as a debit and included in cost of sales was £9 million (31 December 2021: (£10.8 million)).

Cash at bank and on hand

Consolidated

Company

31 December 
2022 
£’000

31 December 
2021 
£’000

31 December 
2022 
£’000

31 December 
2021 
£’000

68,623

68,623

69,916

69,916

5,055

5,055

19,038

19,038

All of the Group’s cash at bank is held with institutions with a credit rating of at least A-. Exceptions may be granted on an 
individual basis in rare cases where a bank is chosen for geographical reasons, but does not fulfil the stipulated rating criteria.

The carrying amounts of the Group and Company’s cash and cash equivalents are denominated in the following currencies:

UK Pounds

Euros

Swedish krona

Zlotys

Ukrainian Hryvnia

Turkish Lira

Russian Ruble

23. Trade and Other Payables

Current liabilities

Trade payables

Wages Payable

Accruals

VAT payable/(receivable)

Deferred consideration

Other payables

Non - Current liabilities

Deferred consideration

Group

Company

31 December 
2022 
‘000

31 December 
2021 
‘000

31 December 
2022 
‘000

31 December 
2021 
‘000

8,536

56,322

1,100

2,479

20

166

-

25,555

43,163

991

17

64

112

14

1,576

3,479

14,704

4,334

-

-

-

-

-

-

-

-

-

-

68,623

69,916

5,055

19,038

Consolidated

Company

31 December 
2022 
£’000

31 December 
2021 
£’000

31 December 
2022 
£’000

31 December 
2021 
£’000

69,907

13,662

39,627

3,785

5,873

7,589

140,443

5,051

5,051

55,865

11,910

19,681

3,975

1,331

5,451

98,213

4,401

4,401

2,964

1,032

4,475

(12)

4,243

824

13,526

5,051

5,051

984

-

3,402

(223)

730

674

5,567

4,401

4,401

The carrying amounts of the Group and Company’s trade and other payables are denominated in the following currencies:

186

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187

 
FINANCIAL REPORT  

Notes to the financial statements 

UK Pounds

Euros

Swedish krona

Zlotys

Ukrainian Hryvnia

Turkish Lira

Russian Ruble

24. Borrowings

Non-current liabilities

Syndicated Senior Credit Facility

Bank Loans

Finance lease liabilities

IFRS 16 leases

Current liabilities

Syndicated Senior Credit Facility

Bank Loans

Finance lease liabilities

IFRS 16 leases

Group

Company

The carrying amounts and fair value of the non-current borrowings are:

31 December 
2022 
‘000

31 December 
2021 
‘000

31 December  
2022 
‘000

31 December 
2021 
‘000

44,493

69,579

21,523

9,663

9

227

-

30,073

46,161

15,924

10,336

9

96

15

16,418

2,692

9,539

429

-

-

-

-

-

-

-

-

-

-

Syndicated Senior Credit Facility

Bank Loans

Finance lease liabilities

IFRS 16 leases

Carrying amount and fair value

31 December 
2022 
£’000

31 December 
2021 
£’000

206,342

191,937

2,617

7,375

12,296

228,630

73

20,189

212,199

145,494

102,614

18,577

9,968

Finance Lease Liabilities (including IFRS 16 leases)

Lease liabilities are effectively secured, as the rights to the leased asset revert to the lessor in the event of default. 

Consolidated

Company

31 December 
2022 
£’000

31 December 
2021 
£’000

31 December  
2022 
£’000

31 December 
2021 
£’000

Finance lease liabilities – minimum lease payments

Not later than one year

206,342

191,937

Later than one year and no later than five years

206,342

2,617

7,375

12,296

228,630

20,000

6,500

2,927

4,419

33,846

191,937

73

8,177

12,012

212,199

8,000

5,301

3,442

4,980

21,723

-

-

27

206,369

-

-

131

192,068

20,000

8,000

-

-

72

20,072

-

-

102

8,102

Later than five years

Future finance charges on finance lease liabilities

Present value of finance lease liabilities

For the year ended 31 December 2022, the total finance charges were £0.6 million. 

The contracted and planned lease commitments were discounted using a weighted average incremental borrowing rate of 3%. 

The present value of finance lease liabilities is as follows:

In July 2021, the Group entered into a new Syndicated Senior Credit Facility of up to £305 million (the ‘Credit Facility’) led 
by Santander UK and including several major UK and European banks. The Credit Facility, which comprises a £205 million 
committed term facility, a £100 million revolving facility commitment and a further £100 million accordion option. This new facility 
replaces all previously existing bank loans within the Group. 

The Credit Facility is secured by a floating charge over the assets of SigmaFin Limited, Carrieres du Hainaut and Nordkalk and 
is secured by a combination of debentures, security interest agreements, pledges and floating rate charges over the assets of 
SigmaRoc plc, SigmaFin Limited, B-Mix, Carrieres du Hainaut and Nordkalk. Interest is charged at a rate between 1.85% and 
3.35% above SONIA (‘Interest Margin’), based on the calculation of the adjusted leverage ratio for the relevant period. For the 
period ending 31 December 2022 the Interest Margin was 2.35%.

Not later than one year

Later than one year and no later than five years

Later than five years

Present value of finance lease liabilities

S
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A
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G
C

I

G
O
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E
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N
A
N
C
E

I

F
N
A
N
C
A
L

I

I

A
D
D
T
O
N
A
L

I

I

N
F
O
R
M
A
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O
N

I

Consolidated

31 December 
2022 
£’000

31 December 
2021 
£’000

7,346

14,547

5,124

27,017

3,200

30,217

8,037

14,643

3,666

26,346

2,265

28,611

Consolidated

31 December 
2022 
£’000

31 December 
2021 
£’000

7,566

14,983

5,278

27,827

8,278

15,082

3,776

27,136

188

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SigmaRoc PLC

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189

 
FINANCIAL REPORT  

Notes to the financial statements 

Reconciliation of liabilities arising from financing activities is as follows:

Consolidated

Long-term 
borrowings 
£’000

Short-term 
borrowings 
£’000

192,010

(10)

26,189

(1,085)

3,205

(20,000)

8,650

208,959

13,302

(17,371)

3,023

-

7,017

20,000

529

26,500

Liabilities 
arising from 
financing 
activities 
£’000

233,923

(30,361)

36,154

(1,085)

14,320

-

9,525

262,476

Lease 
liabilities 
£’000

28,611

(12,980)

6,942

-

4,098

-

346

27,017

As at 1 January 2022

Increase/(decrease) through financing cash flows

Increase from refinancing

Amortisation of finance arrangement fees

Increase through obtaining control of subsidiaries 

Transfer between classes

Foreign exchange movement

As at 31 December 2022

25. Provisions

Consolidated

31 December 
2022 
£’000

31 December 
2021 
£’000

10,175

631

(109)

10,697

6,160

5,721

(1,706)

10,175

The future reclamation cost value is discounted by 8% 
(2021: 7.07%) which is the weighted average cost of capital 
within the Group. 

26. Retirement benefit schemes 
The Group sponsors various post-employment benefit 
plans. These include both defined contribution and defined 
benefit plans as defined by IAS 19 Employee Benefits.

Defined contribution plans

For defined contribution plans outside Belgium, the Group 
pays contributions to publicly or privately administered 
pension funds or insurance contracts. Once the 
contributions have been paid, the Group has no further 
payment obligation. The contributions are expensed 
in the year in which they are due. For the year ended, 
contributions paid into defined contribution plans amounted 
to £317,000.

As at 1 January

Acquired on business combination

Deduction 

The provision total is made up of £632,011 as a restoration 
provision for the St John’s and Les Vardes sites; £86,812 
for the Aberdo site; £172,303 for quarries in Wales; £4.84m 
for the Nordkalk sites; and £338,943 for the Johnston sites 
which are all based on the removal costs of the plant and 
machinery at the sites and restoration of the land. Cost 
estimates in Jersey and Guernsey are not increased on an 
annual basis – there is no legal or planning obligation to 
enhance the sites through restoration. The commitment is 
to restore the site to a safe environment; thus the provision 
is reviewed on an annual basis. The estimated expiry on the 
quarries ranges between 5 – 35 years. 

Of the remaining amount, £83,000 is to cover the loss 
on the Holcim contract in CDH, £106,000 for legal fees, 
£1.76m for other restructuring costs in the Nordkalk entities 
and £2.66m is the provision for early retirement in Belgium, 
where salaried workers can qualify for early retirement 
based on age. The provision for early retirement consists 
of the estimated amount that will be paid by the employer 
to the “early retired workers” till the age of the full pension. 
Refer to Note 26 for more information.

Defined benefit plans

The Group has group insurance plans for some of its Belgian, 
Swedish and Polish employees funded through defined 
payments to insurance companies. The Belgian pension 
plans are by law subject to minimum guaranteed rates of 
return. In the past the minimum guaranteed rates were 
3.25% on employer contributions and 3.75% on employee 
contributions. A law of December 2015 (enforced on 1 
January 2016) modifies the minimum guaranteed rates of 
return applicable to the Group’s Belgian pension plans. For 
insured plans, the rates of 3.25% on employer contributions 
and 3.75% on employee contributions will continue to 
apply to the contributions accumulated before 2016. For 
contributions paid on or after 1 January 2016, a variable 

minimum guaranteed rate of return with a floor of 1.75% 
applies. The Group obtained actuarial calculations for the 
periods reported based on the projected unit credit method. 

The Swedish plan provides an old-age pension cover for 
plan members whereas plan members receive a lump sum 
payment upon retirement in the Polish plan. Both Swedish 
and Polish plans are based on collective labour agreements. 
Through its defined benefit plans, the Group is exposed to 
a number of risks. A decrease in bond yields will increase 
the plan liabilities. Some of the Group’s pension obligations 
are linked to inflation and higher inflation will lead to higher 
liabilities. The majority of the plans obligations are to provide 
benefits for the life of the plan member, so increases in life 
expectancy will result in an increase in the plans liabilities. 

S
T
R
A
T
E
G
C

I

G
O
V
E
R
N
A
N
C
E

I

F
N
A
N
C
A
L

I

I

A
D
D
T
O
N
A
L

I

I

N
F
O
R
M
A
T
O
N

I

Employee benefits amounts in the Statement of Financial Position

Assets

Liabilities

Net defined benefit liability at end of year

Amounts recognised in the Statement of Financial Position

Present value of funded defined benefit obligations

Fair value of plan assets

Present value of unfunded defined benefit obligation

Unrecognised past service cost

Total

Amounts recognised in the Income Statement 

Current service cost

Interest cost

Expected return on plan assets

Total pension expense

Changes in the present value of the defined benefit obligation

Defined benefit obligation at beginning of year

Current service cost

Interest cost

Benefits paid

Remeasurements

Acquired in business combination

Remeasurements in OCI

Other significant events

Foreign exchange movement

Defined benefit obligation at end of year

2022 
£’000

-

3,543

3,543

2022 
£’000

2,468

2021 
£’000

-

4,292

4,292

2021 
£’000

2,222

(2,071)

(2,068)

397

3,128

-

154

4,138

-

3,543

4,292

2022 
£’000

160

47

(127)

80

2022 
£’000

4,292

160

47

(317)

(127)

-

(844)

249

83

3,543

2021 
£’000

32

26

227

285

2021 
£’000

3,593

32

26

(220)

227

1,524

-

-

(890)

4,292

190

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191

 
S
T
R
A
T
E
G
C

I

G
O
V
E
R
N
A
N
C
E

I

F
N
A
N
C
A
L

I

I

A
D
D
T
O
N
A
L

I

I

N
F
O
R
M
A
T
O
N

I

FINANCIAL REPORT  

Notes to the financial statements 

Amounts recognised in the Statement of Changes in Equity

Prior year cumulative actuarial remeasurements

Remeasurements

Foreign exchange movement

Cumulative amount of actuarial gains and losses recognised  
in the Statement of recognised income / (expense)

Movements in the net liability/(asset) recognised in the Statement of Financial Position

Net liability in the balance sheet at beginning of year

Total expense recognised in the income statement

Contributions paid by the company

Amount recognised in the statement of recognised (income)/expense

Acquired in business combination 

Remeasurements in OCI

Other significant events

Foreign exchange movement

Defined benefit obligation at end of year

Principal actuarial assumptions as at 31 December 2022

Discount rate

Future salary increases

Future inflation

2022 
£’000

152

(844)

54

(638)

2022 
£’000

4,292

207

(317)

(127)

-

(844)

249

83

3,543

2021 
£’000

(75)

227

-

152

2021 
£’000

3,593

58

(220)

227

1,524

-

-

(890)

4,292

2.77%

2.56%

2.20%

Post-retirement benefits
The Group operates both defined benefit and defined 
contribution pension plans.

Pension plans in Belgium are of the defined benefit type 
because of the minimum promised return on contributions 
required by law. The liability or asset recognised in the 
Statement of Financial Position in respect of defined 
benefit pension plans is the present value of the defined 
benefit obligation at the end of the reporting period less 
the fair value of plan assets. The defined benefit obligation 
is calculated annually by independent actuaries using the 
projected unit credit method. The present value of the 
defined benefit obligation is determined by discounting 
the estimated future cash outflows using interest rates of 
high-quality corporate bonds that are denominated in the 
currency in which the benefits will be paid, and that have 

terms approximating to the terms of the related obligation. 
The net interest cost is calculated by applying the discount 
rate to the net balance of the defined benefit obligation 
and the fair value of plan assets. This cost is included 
in employee benefit expense in the Income Statement. 
Remeasurement gains and losses arising from experience 
adjustments and changes in actuarial assumptions are 
recognised in the period in which they occur, directly in 
other comprehensive income. They are included in retained 
earnings in the Statement of Changes in Equity and in the 
Statement of Financial Position.

For defined contribution plans, the Group pays contributions 
to publicly or privately administered pension insurance plans 
on a mandatory, contractual or voluntary basis. The Group 
has no further payment obligations once the contributions 
have been paid. The contributions are recognised as 
employee benefit expense when they are due.

27. Financial Instruments by Category

Consolidated

31 December 2022

Assets per Statement of Financial Performance

Trade and other receivables (excluding prepayments)

Cash and cash equivalents

Liabilities per Statement of Financial Performance

Borrowings (excluding finance leases)

Finance lease liabilities

Trade and other payables (excluding non-financial liabilities)

Loans & 
receivables 
£’000

86,148

68,623

154,771

At amortised  
cost 
£’000

235,459

27,017

145,495

407,971

Consolidated

31 December 2021

Assets per Statement of Financial Performance

Trade and other receivables (excluding prepayments)

Cash and cash equivalents

Liabilities per Statement of Financial Performance

Borrowings (excluding finance leases)

Finance lease liabilities

Trade and other payables (excluding non-financial liabilities)

Loans & 
receivables 
£’000

69,656

69,916

139,572

At amortised  
cost 
£’000

205,312

28,611

102,614

336,537

Company

31 December 2022

Assets per Statement of Financial Performance

Trade and other receivables (excluding prepayments)

Cash and cash equivalents

Loans & 
receivables 
£’000

2,810

5,055

7,865

Total 
£’000

86,148

68,623

154,771

Total 
£’000

235,459

27,017

145,495

407,971

Total 
£’000

69,656

69,916

139,572

Total 
£’000

205,312

28,611

102,614

336,537

Total 
£’000

2,810

5,055

7,865

192

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SigmaRoc PLC

Invest, Improve, Integrate and Innovate

193

 
 
 
FINANCIAL REPORT  

Notes to the financial statements 

Liabilities per Statement of Financial Performance

Borrowings (excluding finance leases)

Finance lease liabilities

Trade and other payables (excluding non-financial liabilities)

Company

Assets per Statement of Financial Performance

Trade and other receivables (excluding prepayments)

Cash and cash equivalents

Liabilities per Statement of Financial Performance

Borrowings (excluding finance leases)

Finance lease liabilities

Trade and other payables (excluding non-financial liabilities)

28. Share Capital and Share Premium

At amortised 
cost 
£’000

Total 
£’000

226,342

226,342

99

18,577

245,018

99

18,577

245,018

31 December 2021

Loans & 
receivables 
£’000

2,544

19,038

21,582

At amortised 
cost 
£’000

Total 
£’000

2,544

19,038

21,582

Total 
£’000

199,937

199,937

233

9,968

233

9,968

210,138

210,138

Issued and fully paid

As at 1 January 2021

Exercise of options & warrants – 27 April 2021

Exercise of warrants – 7 May 2021

Issue of new shares – 31 August 20211

Issue of new shares – 31 August 2021 

As at 31 December 2021

As at 1 January 2022

1,059,346

78,044

307,762,653

50,276,521

637,915,750

637,915,750

Exercise of options & warrants – 4 January 2022

330,594

As at 31 December 2022

638,246,344

1 Includes issue costs of £8,748,365.

Number of 
shares

Ordinary 
shares 
£’000

Share 
premium 
£’000

Total 
£’000

278,739,186

2,787

107,418

110,205

11

1

3,059

521

6,379

6,379

4

6,383

456

19

249,772

42,232

399,897

399,897

125

467

20

252,831

42,753

406,276

406,276

129

400,022

406,405

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A
T
E
G
C

I

G
O
V
E
R
N
A
N
C
E

I

F
N
A
N
C
A
L

I

I

A
D
D
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O
N
A
L

I

I

N
F
O
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29. Share Options

In 2021, the Company introduced a long term incentive plan (‘LTIP’) for senior management personnel. Shares are awarded in 
the Company and vest in 3 parts over the third, fourth and fifth anniversary to the extent the performance conditions are met. 

Share options and warrants outstanding and exercisable at the end of the year have the following expiry dates and exercise prices:

Grant date

5 January 2017

5 January 2017

15 April 2019

Expiry date

30 December 2026

30 December 2026

15 April 2026

30 December 2019

30 December 2026

Exercise price in  
£ per share

0.25

0.40

0.46

0.46

Options & Warrants

31  
December  
2022

31 
December  
2021

#

#

260,146

286,160

11,878,645

12,183,225

9,030,934

7,976,392

9,340,934

8,389,726

29,146,117

30,200,045

The Company and Group have no legal or constructive obligation to settle or repurchase the options or warrants in cash.

The Options issued on 5 January 2017 expiry date was extended from 5 January 2022 until 30 December 2026 on 15 
December 2021.

The fair value of the share options and warrants was determined using the Black Scholes valuation model. The parameters 
used are detailed below:

Vested on

Revalued on

Life (years)

Share price

Risk free rate

Expected volatility

Expected dividend yield

Marketability discount

Total fair value

2017 Options A

2017 Options B

2019 Options C

2019 Options D

5/1/2017

5/1/2017

15/4 

30/12

15/12/2021

15/12/2021

5

0.8295

0.40%

31.32%

-

-

5

0.8295

0.40%

31.32%

-

-

-

7

0.465

0.31%

4.69%

-

-

-

7

0.525

0.55%

8.19%

-

-

£58,345

£661,604

£419,130

£729,632

The risk-free rate of return is based on zero yield government bonds for a term consistent with the option life.

The volatility is calculated by dividing the standard deviation of the closing share price from the prior six months by the average 
of the closing share price from the prior six months. 

2017 Options A and B were extended for another 5 years by the Board on 15 December 2021 and were revalued on this day.

A reconciliation of options and warrants and LTIP awards granted over the year to 31 December 2021 is shown below:

The authorised share capital consists of 702,070,978 ordinary shares at a par value of 1 penny.

On 4 January 2022, the Company issued and allotted 304,580 new Ordinary Shares at a price of 40 pence per share as an 
exercise of options. On this same day the Company issued and allotted 26,014. new Ordinary Shares at a price of 25 pence 
per share as an exercise of options.

194

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SigmaRoc PLC

Invest, Improve, Integrate and Innovate

195

 
FINANCIAL REPORT 

Notes to the financial statements 

Options and warrants

31 December 2022

Weighted average 
exercise price 
£

31 December 2021

Weighted average 
exercise price 
£

Outstanding at beginning of the year

30,200,045

0.45

25,416,105

Granted

Vested

Exercised 

Outstanding as at year end

Exercisable at year end

LTIP awards

-

-

(1,053,927)

29,146,117

29,146,117

-

-

0.44

0.44

0.44

-

5,921,330

(1,137,390)

30,200,045

30,200,045

0.42

-

0.46

0.40

0.45

0.45

31 December 2022

31 December 2021

Outstanding at beginning of the year

Granted

Vested

Exercised 

#

-

25,620,000

-

-

Outstanding as at year end

25,620,000

Exercisable at year end

-

30. Other Reserves

Weighted average 
valuation price 
£

-

0.69

-

-

0.69

-

Group

#

-

25,620,000

-

-

25,620,000

-

Deferred 
shares 
£’000

Capital 
redemption 
reserve 
£’000

Revaluation 
reserve  
£’000

Capital 
reserve  
£’000

As at 1 January 2021

762

600

Other comprehensive income

Currency translation differences

As at 31 December 2021

As at 1 January 2022

Other comprehensive income

Currency translation differences

Other equity adjustments

-

-

762

762

-

-

-

-

-

600

600

-

-

-

-

1,037

-

1,037

1,037

3,634

-

-

As at 31 December 2022

762

600

4,671

-

-

-

-

-

-

-

687

687

Foreign 
currency 
translation 
reserve 

1,931

-

(15,566)

(15,566)

(13,635)

(11,236)

(13,635)

(11,236)

-

17,176

-

3,634

17,176

687

3,541

10,261

Weighted average 
valuation price 
£

-

0.69

-

-

0.69

-

Total 
£’000

3,293

1,037

31. Non-controlling interests

As at 1 January 2022

Shares issued to non-controlling interest 

Acquired in business combination

Non-controlling interests share of profit in the period

Dividends paid

Foreign exchange movement

As at 31 December 2022

Current assets

Non-current assets

Current liabilities

Non-current liabilities

Net Assets

Net Assets Attributable to NCI

Revenue

Profit after taxation

Other comprehensive income

Total comprehensive income

Net operating cash flow

Net investing cash flow

Net financing cash flow

Dividends paid to NCI

S
T
R
A
T
E
G
C

I

G
O
V
E
R
N
A
N
C
E

Group 
£’000

10,894

-

974

2,343

(3,038)

559

11,732

I

F
N
A
N
C
A
L

I

I

A
D
D
T
O
N
A
L

I

I

N
F
O
R
M
A
T
O
N

I

31 December 2022

31 December 2021

Suomen 
Karbonaatti 
£’000

17,592

3,348

7,975

5,767

7,197

3,527

37,760

3,294

-

3,294

4,196

(679)

(6,208)

3,038

Other 
individually 
immaterial 
subsidiaries 
£’000

Other 
individually 
immaterial 
subsidiaries 
£’000

Suomen 
Karbonaatti 
£’000

12,427

19,605

7,627

4,361

20,045

7,366

23,662

1,993

-

1,993

1,556

(2,782)

1,701

-

22,164

4,430

6,100

9,011

11,483

3,981

52,245

6,748

-

6,748

7,326

(603)

(6,012)

601

3,970

13,166

2,232

885

14,019

5,905

9,734

148

-

148

1,596

(2,170)

(4,040)

 -

32. Earnings Per Share
The calculation of the total basic earnings per share of 4.89 
pence (2021: (1.89) pence) is calculated by dividing the 
profit attributable to shareholders of £31,238 million (2021: 
loss of £6,971 million) by the weighted average number 
of ordinary shares of 638,243,627 (2021: 400,170,256) in 
issue during the period.

Diluted earnings per share of 4.68 pence (2021: (1.77) 
pence) is calculated by dividing the profit attributable to 
shareholders of £31,238 million (2021: loss of £6,971 
million) by the weighted average number of ordinary shares 
in issue during the period plus the weighted average 
number of share options and warrants to subscribe for 
ordinary shares in the Company, which together total 
667,430,527 (2021: 427,854,251). The weighted average 
number of shares is the opening balance of ordinary shares 
plus the weighted average of 327,877 shares.

Details of share options that could potentially dilute earnings 
per share in future periods are disclosed in Note 29. 

33. Fair Value of Financial Assets and 
Liabilities Measured at Amortised Costs
The following table shows the carrying amounts and fair 
values of the financial assets and liabilities, including their 
levels in the fair value hierarchy. It does not include fair value 
information for financial assets and financial liabilities not 
measured at fair value if the carrying amount is a reasonable 
approximation of fair value. 

Items where the carrying amount equates to the fair value 
are categorised to three levels:
 –  Level 1 inputs are quoted prices (unadjusted) in active 

markets for identical assets or liabilities that the entity can 
access at the measurement date

 –  Level 2 inputs are inputs other than quoted prices 

included within Level 1 that are observable for the asset 
or liability, either directly or indirectly

 –  Level 3 inputs are unobservable inputs for the asset  

or liability.

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FINANCIAL REPORT  

Notes to the financial statements 

Carrying Amount

Fair value

Fair value 
– Hedging 
instruments 
£’000

Fair 
value 
through 
P&L 
£’000

Fair 
value 
through 
OCI 
£’000

Financial 
asset at 
amortised 
cost 
£’000

Other 
financial 
liabilities 
£’000

Total 
£’000

Level 1 
£’000

Level 2 
£’000

Total 
£’000

Forward 
exchange 
contracts

CO2 emission 
hedge

Electricity 
hedges

Financials 
assets not 
measure at  
fair value

Trade and other 
receivables (excl. 
Derivatives)

Cash and cash 
equivalents

Financial  
liabilities 
measured at 
fair value

Forward 
exchange 
contracts

Electricity 
hedges

Financial 
liabilities not 
measured at 
fair value

Loans

Finance lease 
liability

Trade and other 
payables (excl. 
derivative)

-

-

-

-

-

-

-

-

-

-

436

1,526

-

13,493

-

-

-

-

-

-

-

-

-

-

1,962

-

-

-

13,493 13,493

91,065

68,623

-

-

1,962

1,962

-

-

-

-

-

13,493

-

-

1,441

-

1,441

1,441

5,804

5,804

-

-

-

-

5,804

-

-

-

235,459 235,459

27,017

27,017

145,495 145,495

-

-

-

-

-

91,065

68,623

1,441

5,804

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

-

34. Business Combinations

Johnston Quarry Group

On 31 January 2022, the Group acquired 100%. of the share capital of Johnston Quarry Group Limited (‘JQG’) for a cash 
consideration of £35.5 million (being £35.5 million less adjustments for various obligations assumed by the Group as part of the 
acquisition). JQG is registered and incorporated in England. JQG is a high-quality producer of construction aggregates, building 
stone and agricultural lime. 

The following table summarises the consideration paid for JQG and the values of the assets and equity assumed at the 
acquisition date.

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C

I

G
O
V
E
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N
A
N
C
E

I

F
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A
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C
A
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I

I

A
D
D
T
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N
A
L

I

I

N
F
O
R
M
A
T
O
N

I

Total consideration

Cash consideration 

Repayment of loan

Deferred consideration

Recognised amounts of assets and liabilities acquired 

Cash and cash equivalents

Trade and other receivables

Inventories

Property, plant & equipment

Trade and other payables

Borrowings

Provisions

Income tax payable

Deferred tax liability

Total identifiable net assets
Goodwill

Total consideration

£’000

42,046

(6,996)

8,500

43,550

£’000

1,587

2,160

881

16,896

(5,840)

(10,795)

(325)

(350)

(826)

3,388

40,162

43,550

Since 31 January 2022 JQG has contributed a profit of £4.5 million and revenue of £16.5 million. Had JQG been consolidated 
from 1 January 2022, the consolidated statement of income would show additional profit of £11,000 and revenue of £1.2 million.

RightCast Limited

On 27 April 2022, the Group acquired 100%. of the share capital of RightCast Limited (‘RightCast’) and its subsidiaries for 
a cash consideration of £2.55 million. RightCast is registered and incorporated in England. RightCast is a precast company 
specialising in the design, manufacture, supply and installation of bespoke precast concrete products. 

The following table summarises the consideration paid for RightCast and the values of the assets and equity assumed at the 
acquisition date.

Total consideration

Initial Cash

Working capital adjustment 

Cash acquired and repatriated to vendors

Deferred consideration

Recognised amounts of assets and liabilities acquired 

Cash and cash equivalents

Trade and other receivables

Inventories

Property, plant & equipment

Trade and other payables

Income tax payable

Deferred tax liability

Total identifiable net assets
Goodwill (refer to Note 17)

Total consideration

£’000

2,550

297

690

450

3,987

£’000

315

1,153

462

75

(474)

(57)

(19)

1,455

2,532

3,987

Since 27 April 2022 RightCast has contributed a profit of £0.5 million and revenue of £2.8 million. Had RightCast been 
consolidated from 1 January 2022, the consolidated statement of income would show additional profit of £0.1 million and 
revenue of £0.9 million.

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O
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A
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E

I

F
N
A
N
C
A
L

I

I

A
D
D
T
O
N
A
L

I

I

N
F
O
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A
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O
N

I

FINANCIAL REPORT  

Notes to the financial statements 

La Belonga

On 31 July 2022, the Group acquired 65 per cent of the share capital of La Belonga with the remaining 35 per cent acquired by 
CdB. for a cash consideration of €2.2 million. La Belonga is registered and incorporated in Spain. La Belonga is a high-quality 
producer of limestone.  

The following table summarises the consideration paid for La Belonga and the values of the assets and equity assumed at the 
acquisition date.

Total consideration

Net cash consideration 

Deferred consideration

Recognised amounts of assets and liabilities acquired 

Cash and cash equivalents

Trade and other receivables

Investments

Inventories

Deferred tax asset

Property, plant & equipment

Intangible assets

Trade and other payables

Borrowings

Provisions

Total identifiable net assets
Goodwill

Total consideration

£’000

1,919

1,129

3,048

£’000

127

2,253

46

619

7

4,740

23

(1,500)

(3,374)

(220)

2,721

327

3,048

Since 31 July 2022 La Belonga has contributed a profit of £0.1 million and revenue of £1.3 million. Had La Belonga been 
consolidated from 1 January 2022, the consolidated statement of income would show additional profit of £19,000 and revenue 
of £3.2 million.

35. Contingencies

The Group is not aware of any material personal injury or damage claims open against the Group.

36. Related party transactions

Loans with Group Undertakings

Amounts receivable/(payable) as a result of loans granted to/(from) subsidiary undertakings are as follows:

Ronez Limited

SigmaGsy Limited

SigmaFin Limited

Topcrete Limited

Poundfield Products (Group) Limited

Foelfach Stone Limited

CCP Building Products Limited

Carrières du Hainaut SCA

GDH (Holdings) Limited

B-Mix Beton NV

Stone Holdings SA

Nordkalk Oy Ab

Johnston Quarry Group

RightCast Limited

Company

31 December 
2022 
£’000

31 December 
2021 
£’000

(22,764)

(7,663)

20,549

(10,346)

5,356

557

4,586

14,948

10,035

8,013

384

70,196

7,747

(799)

(18,328)

(5,705)

20,146

(9,494)

5,501

466

5,647

18,251

9,588

1,295

376

91,367

-

-

Loans granted to or from subsidiaries are unsecured, have interest charged at 2% and are repayable in Pounds Sterling on 
demand from the Company. 

100,799

119,110

All intra Group transactions are eliminated on consolidation.

37. Ultimate Controlling Party

The Directors believe there is no ultimate controlling party.

38. Events After the Reporting Date

On 28 February 2023 the Company raised gross proceeds of approximately £30 million through the issue of 55,555,555 new 
Ordinary Shares at a price of 54 pence per share.

On 10 March, the Company announced the completion of the Goijens and the Juuan Dolomitik acquisitions for an aggregate 
consideration of £12 million. Goijens operates two concrete plants and concrete recycling facilities, as well as pumping and 
other services and Juuan Dolomitik, a specialist supplier of high-quality dolomitic limestone. They will be immediately enhancing 
to the Group’s underlying earnings, and the acquisitions were funded from the net cash proceeds generated by the Group’s 
equity fundraising in February 2023.

No further financial information on these transactions is available at this time, due to the proximity of the acquisitions to the 
reporting date of these financial statements.

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I

G
O
V
E
R
N
A
N
C
E

I

F
N
A
N
C
A
L

I

I

A
D
D
T
O
N
A
L

I

I

N
F
O
R
M
A
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N

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FINANCIAL REPORT  

Notes to the financial statements 

39. Prior year restatement

As part of previously made acquisitions, a PPA exercise was performed to split out separately identifiable assets from acquired 
goodwill. On completion of this exercise, the deferred tax impact on the fair value uplift of the assets identified during the PPA 
was not correctly reflected in line with IAS 12. As a result, a prior year adjustment is required which results in an increase to the 
Group's deferred tax liability of £12,527,074 with acquired goodwill increasing by the same amount. There are no changes to 
the prior period income statement, statement of comprehensive income, statement of changes in equity or the statement of 
cash flows.

The impact of the prior year restatement in respect of the classification of the investments held are as follows:

Non-current assets

Intangible assets

Non-current liabilities

Deferred tax liability 

Net assets

2021 
As presented
£’000

Restatement
£’000

2021 
As restated
£’000

306,436

12,527

318,963

5,190

411,154

12,527

-

17,717

411,154

ADDITIONAL INFORMATION
Company information

Directors

David Barrett (Executive Chairman)

Max Vermorken (Chief Executive Officer)

Garth Palmer (Chief Financial Officer)

Tim Hall (Non-Executive Director)

Simon Chisholm (Non-Executive Director) 

Jacques Emsens (Non-Executive Director)

Axelle Henry (Non-Executive Director) – 
Appointed on 26 April 2022

Company Secretary

Julie Kuenzel

Registered Office

6 Heddon Street
London
W1B 4BT

Company Number

05204176

Bankers

Santander UK plc
2 Triton Square
Regent’s Place
London
NW1 3AN

Nominated & Financial Adviser

Liberum Capital Limited
25 Ropemaker Street
London
EC2Y 9LY

Joint Brokers

Liberum Capital Limited
25 Ropemaker Street
London
EC2Y 9LY

Peel Hunt LLP 
100 Liverpool Street 
London 
EC2M 2AT

Independent Auditor

PKF Littlejohn LLP
Statutory Auditor
15 Westferry Circus
Canary Wharf
London
E14 4HD

Solicitors

Fieldfisher LLP
Riverbank House
2 Swan Lane
London
EC4R 3TT

Registrars

Link Market Services Limited
The Registry
34 Beckenham Road
Beckenham
Kent
BR3 4TU

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ADDITIONAL INFORMATION  

Definitions
‘2018 Regulations’ 
the Companies (Directors’ Report) and Limited Liability 
Partnerships (Energy and Carbon Report) Regulations 2018 
that came into force on 1 April 2019

‘4i’ 
the Group’s four core operating principles, being Invest, 
Improve, Integrate and Innovate

‘Accounts’ or ‘Annual Report’ 
the consolidated financial statements of the Group for the 
year ended 31 December 2022 together with the Chairman’s 
Statement, CEO’s Strategic Report, Directors’ Report and 
additional reports contained therein

‘Adjusted Leverage Ratio’ 
the comparison of net debt to Underlying EBITDA for the 
last twelve months adjusted for pre-acquisition earnings of 
subsidiaries acquired during the year

‘AGM’ 
an annual general meeting of the Company

‘AIM’ 
AIM Market of the London Stock Exchange

‘Allen’ or ‘Allen Concrete’ 
Topcrete Limited and its subsidiary undertakings, including 
Allen (Concrete) Limited

‘Aqualung’ 
Aqualung Carbon Capture AS

‘ArcelorMittal’ 
ArcelorMittal Global Holdings S.L.R.

‘Articles’ 
the Company’s Articles of Association

‘B-Mix’ 
collectively, B-Mix Beton NV, J&G Overslag en Kraanbedrijf 
BV and Top Pomping NV

‘Baltics Aggregates’ 
Baltic Aggregates Oy, a subsidiary of the Group registered in 
Finland and focused on aggregate exports from Finland to 
the Baltic states

‘Baltics Platform’ 
the Group’s limestone and dolomite operations, and part of 
Nordkalk, covering the Baltic states markets and including 
Baltic Aggregates

‘Benelux’ or ‘Benelux Platform’ 
the Group’s construction materials platform covering the 
Benelux market including GduH, B-Mix and Stone

‘Bluestone’ 
Belgian Blue Limestone local to the Hainaut region

‘Board’ or ‘Directors’ 
the board directors of the Company, being the existing 
Directors (whose names are set out on page 122 of this 
document), proposed Directors or both, as the context  
may require

‘Bow Tie’ 
visual tool to keep an overview of risk management practices

‘bps’ 
basis points, whereby one basis point is equivalent to 0.01%

‘CapEx’ 
capital expenditure on property, plant and equipment

‘Carrieres du Haintaut’ or ‘CDH’ 
CDH Développement SA and its subsidiary undertakings, 
including Carrières du Hainaut SCA

‘Casters’ 
Casters Beton NV

‘CCR’ 
cash conversion ratio, an indicator that measures the 
Group’s ability to convert profits into available cash, 
calculated as net cash inflows/(outflows) from operating 
activities divided by Underlying EBITDA

‘CCUS’ 
carbon capture utilisation or sequestration

‘CdB’ 
Carrières du Boulonnais which is part of Groupe Boulonnais

‘CEO’ 
Chief Executive Officer of the Company occupied by Max 
Vermorken

‘CFO’ 
Chief Financial Officer of the Company occupied by Garth 
Palmer

‘Channel Islands’ or ‘Channel Islands Platform’ 
the Group’s construction materials platform covering the 
Channel Islands market including Ronez and SigmaGsy

‘Cheshire Concrete Products’ or ‘CCP’ 
CCP Building Products Limited and its subsidiary 
undertakings

‘CO2’ 
carbon dioxide

‘CO2e 
carbon dioxide emitted

‘Company’ or ‘SigmaRoc’ 
SigmaRoc plc

‘Coronavirus’, ‘COVID’ or ‘COVID-19’ 
coronavirus (COVID-19) infectious disease and its pandemic 
outbreak

‘Cuvelier’ 
Philippe Cuvelier S.A

‘Dimension Stone’ or ‘Dimension Stone Platform’ 
the Group’s dimension stone platform based in Belgium 
consisting of CDH

‘EBITDA’ 
earnings before interest, tax, depreciation and amortisation

‘eCO2’ 
embodied CO2

‘EMS’ 
environmental management system

‘England’ or ‘England Platform’ 
the Group’s construction materials platform covering the 
English market currently comprising of Johnston

‘EPD’ 
environmental product declaration

‘EPS’ 
earnings per share

‘ESG’ 
environment, social and governance

‘EUETS’ 
European Union Emissions Trading System

‘EURIBOR’ 
the Euro Interbank Offered Rate is an overnight interbank 
rate comprised of the average interest rates from a panel 
of large European banks that are used for lending to one 
another in euros

‘euros’, ‘EUR’ or ‘€” 
the currency unit of the European Monetary Union

‘FCF’ or ‘Free Cash Flow’ 
net cash flows from operating activities adjusted for 
Maintenance CapEx, net interest paid, and net non-
underlying expenses paid

‘FD’ 
Financial Director of a business, platform or region

‘Financial Statements’ 
the consolidated income statement, consolidated statement 
of comprehensive income, statements of financial position, 
consolidated statement of changes in equity, Company 
statement of changes in equity, cash flow statements and 
the accompanying notes to the financial statements

‘FLT’ 
fork-lift truck

‘Foelfach’ 
Foelfach Stone Limited

‘FTSE Russell’ 
subsidiary of London Stock Exchange Group that produces, 
maintains, licenses, and markets stock market indices

‘GduH’ or ‘Granulats du Hainaut’ 
Granulats du Hainaut SA

‘GGBS’ 
ground-granulated blast-furnace slag

‘GHG’ 
greenhouse gas

‘Goijens’ 
Gripeco BV and its 100% owned subsidiaries Wegenbouw 
Goijens NV, Goijens Recycling NV and G&G Bentonpompen 
BV, a Belgian group of companies acquired by the Group 
in 2023 and which supplies ready-mixed concrete and 
pumping solutions in the north east of Belgium

‘Greenbloc’ 
the Group’s cement free ultra-low carbon precast product 
range

‘Group’ 
the Company and its subsidiary undertakings

‘Groupe Boulonnais’ 
Groupe Carrières du Boulonnais

‘Group Revenue’ 
consolidated revenue of the Group for the year ended 31 
December 2022

‘Growth CapEx’ 
investment to acquire or upgrade assets that enable the 
Group to expand its operations or improve its efficiency to 
generate future earnings growth

‘Harries’ 
GDH (Holdings) Limited and its subsidiary undertakings 
including Gerald D. Harries & Sons Limited

‘HSEQ’ 
health, safety, environment and quality

‘H&S’ 
health & safety

‘IAS’ 
International Accounting Standards

‘IASB’ 
International Accounting Standards Board

‘IFRS’ 
International Financial Reporting Standards

‘IFRSIC’ 
IFRS Interpretations Committee

‘IOSH’ 
Institution of Occupational Safety and Health

‘ISO’ 
International Organisation for Standardisation

‘ISO 14001’ 
international standard that specifies requirements for an 
effective EMS, provides a framework that an organisation 
can follow, rather than establishing environmental 
performance requirements

‘ISO 45001’ 
standard for management systems of occupational health 
and safety focused on reduction of occupational injuries and 
diseases, including promoting and protecting physical and 
mental health

‘JD’ or ‘Juuan Dolomitik’ 
Juuan Dolomiittikalkki Oy, a Finnish company acquired by 
the Group in 2023 which supplies high quality dolomitic 
limestone to agricultural and environmental industries

‘JQG’, ‘Johnston’ or ‘Johnston Quarry Group’ 
Johnston Quarry Group Limited, Guiting Quarry Limited and 
its subsidiary undertakings

‘JV’ 
joint venture

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ADDITIONAL INFORMATION  

Definitions 

‘kge’ 
kilogram equivalent

‘kWh’ 
kilowatt-hour

‘La Belonga’ 
La Belonga S.A.

‘Leverage Ratio’ 
the same as Adjusted Leverage Ratio, but excluding IFRS 16 
related lease liabilities from net debt

‘LFL’ 
like-for-like comparative prepared on a pro-forma basis 
adjusted for impact of any acquisitions or non-recurring 
events

‘Link’ 
Link Market Services Limited who acts as the Company’s 
registrar

‘LTIFR’ 
lost time injury frequency rate

‘LTIP’ or ‘Long Term Incentive Plan’ 
the initial awards made under the PSP in October 2021 to 
executive directors and certain senior management

‘M&A’ 
mergers & acquisitions

‘Maintenance CapEx’ 
investment made to maintain and preserve the operational 
efficiency of existing assets, to ensure they are kept in 
good working condition and can continue to generate the 
expected level of revenue and profits for the Group

‘Marshalls’ 
Marshalls plc, UK’s leading hard landscaping and building 
materials supplier

‘MD’ 
Managing Director of a business, platform or region

‘NED’ 
Non-Executive Director

‘NEBOSH’ 
the National Examination Board in Occupational Safety and 
Health

‘Net Margin’ 
EBITDA margin adjusted for impact of inflationary cost pass-
throughs, such as energy, materials and distribution

‘NMWTRA’ 
the North and Mid Wales Trunk Road Agent, being one 
of two trunk road agents in Wales and responsible for 
managing motorways and trunk roads in North and Mid 
Wales on behalf of the Welsh Government

‘Nordics Platform’ 
the Group’s limestone, carbonate and specialty products 
business, which forms part of Nordkalk, and addresses 
Finnish and Swedish markets

‘Nordkalk’ 
the Nordkalk group, consisting of Nordkalk Oy Ab and its 
subsidiary undertakings

North East’ or ‘North East Region’ 
the North East region of the Group comprising of Nordkalk

‘North West’ or ‘North West Region’ 
The North West region of the Group comprising PPG, 
England, Wales and the Channel Islands

‘NOx’ 
nitrogen oxides

‘Ordinary Shares’ 
the ordinary shares of 1 penny each in the capital of the 
Company

‘OpEx’ 
operating expenditure

‘PERC’ 
Pan European Reserves & Resources Reporting Committee, 
where possible we follow PERC guidelines when reporting 
Reserves and Resources

‘PFA’ 
pulverised fuel ash

‘pH’ 
scale used to specify acidity or alkalinity

‘PKF’ 
PKF Littlejohn LLP

‘Poland Platform’ 
the Group’s limestone and carbonate operations in Poland, 
which is part of Nordkalk, and also includes relatively small 
operations in Turkey and prospective mineral permits in 
Ukraine

‘Poundfield’ or ‘Poundfield Products’ 
Poundfield Products (Group) Limited and its subsidiary 
undertakings, including Poundfield Products Limited

‘PPA’ 
purchase price allocation

‘PPG’ or ‘PPG Platform’ 
the Group’s precast concrete products platform covering the 
UK market including Allen, Poundfield and CCP 

‘ppt’ 
percentage points

‘pro-forma’ 
financial information presented on a like-for-like basis 
adjusting for impact of any acquisitions and non-recurring 
events

‘PSP’ or ‘Performance Share Plan’ 
performance based long term share incentive plan

‘QCA Code’ 
Quoted Companies Alliance’s Corporate Governance Code

‘Quicklime Platform’ 
the Group’s industrial focused quicklime platform, which 
forms part of Nordkalk, and owns & operates kilns in Finland, 
Sweden and Estonia, has JV companies that operate kilns in 
Sweden and Norway, and manages customer owned kilns in 
Finland and Germany

‘RCF’ 
revolving credit facility

‘Reserves’ 
mineral that has a high level of geological knowledge 
and confidence, is economically mineable, and includes 
modifying factors such as having permits and regulatory 
approvals in place

‘Resources’ 
mineral that has a level of geological knowledge and 
confidence and that there are reasonable prospects for 
eventual economic extraction

‘RMI’ 
repair, maintenance and improvement

‘RNS’  
Regulatory News Service

‘ROIC’ 
return on invested capital, a measure of the profitability and 
value-creating potential of companies relative to the amount 
of capital invested by shareholders and other debtholders

‘Ronez’ 
Ronez Limited and its subsidiary undertakings

‘Santander’ 
Santander plc

‘SASB’ 
sustainability accounting standards board

‘SBTi’ 
Science Based Targets initiative

‘SECR’ 
streamlined energy and carbon reporting

‘Shareholder’ 
a holder of Ordinary Shares

‘SigmaGsy’ 
SigmaGsy Limited

‘SIP’ 
share incentive plan

‘SKOY’ 
Suomen Karbonaatti Oy, a joint venture company between 
Nordkalk (51%.) and Omya Oy (49%.), a subsidiary of 
Switzerland-based industrial minerals company Omya

‘SONIA’ 
Sterling Overnight Index Average, average of the interest 
rates that banks pay to borrow Sterling overnight from other 
financial institutions and other institutional investors

‘SOx’ 
sulphur oxides

‘SPPI’ 
the contractual cash flows of an asset give rise to payments 
on specified dates that are solely payments of principal and 
interest

‘Sterling’, ‘GBP’ or ‘£” 
pound sterling currency of the UK and Channel Islands

‘Stone’ or ‘Stone Holdings’ 
Stone Holdings S.A and its subsidiary Cuvelier

‘SWTRA’ 
the South Wales Trunk Road Agent, being one of two 
trunk road agents in Wales and responsible for managing 
motorways and trunk roads in South Wales on behalf of the 
Welsh Government

‘TCFD’ 
task force on climate-related financial disclosures 

‘tCO₂e’ 
tonnes of carbon dioxide equivalent

‘TIFR’ 
total incident frequency rate

‘TSR’ 
total shareholder returns

‘UK’ 
United Kingdom

‘UK IAS’ 
UK-adopted international accounting standards, which 
includes IAS, IFRS, IFRSIC, and subsequent amendments 
to those standards and related interpretations, plus future 
standards and related interpretations issued or adopted by 
the IASB

‘Underlying’* 
Underlying results are stated before acquisition related 
expenses, certain finance costs, redundancy and 
reorganisation costs, impairments, amortisation of 
acquisition intangibles and share option expense. 
References to an underlying profit measure throughout this 
Annual Report are defined on this basis

‘UPM’ 
UPM-Kymmene Oyj a Finnish forest industry company

‘USA’ 
United States of America

‘Wales’ or ‘Wales Platform’ 
the Group’s construction materials platform covering the 
Southern Welsh market including Harries and Foelfach

‘West’ or ‘West Region’ 
the West region of the Group including Dimension Stone and 
Benelux

‘YoY’ 
year-on-year

*  these measures are not defined by UK IAS and therefore 

may not be directly comparable to similar measures 
adopted by other companies. These alternative 
performance measures should be considered in addition 
to and are not intended to be a substitute for, or superior 
to, UK IAS measures but provide useful information on the 
performance of the Group and underlying trends. 

206

Invest, Improve, Integrate and Innovate

SigmaRoc PLC

SigmaRoc PLC

Invest, Improve, Integrate and Innovate

207

 
 
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