DAVY VIEW

With SigmaRoc’s (SRC) H1 performance largely understood, the acquisition of AB Dolomitas is the key takeaway this morning. The deal further strengthens SRC’s Baltic platform, adding a high-margin, reserve-backed dolomite asset with over 25 years of reserves. Acquired at 6x FY25 EBITDA, pre-synergies, the transaction fits neatly within SRC's long-established approach of acquiring high-quality assets at attractive valuations. Looking beyond the acquisition, improving end-markets, an active M&A pipeline and scope for further earnings upgrades leave us increasingly positive on the broader investment case. At 127p, SRC trades on c.7.0x EV/EBITDA — an undemanding valuation for a business that continues to improve both its scale and quality.