SigmaRoc (SRC:AIM) 42.25p

Loss to date: 2.3%

Original entry point: Buy at 43.25p, 26 October 2017

Building materials company SigmaRoc (SRC:AIM) has made another acquisition in its efforts to become a niche player in the pan-European construction industry. It has raised £13.9m to fund the £10.25m acquisition of Poundfield Products which specialises in patented concrete products and systems such as retaining walls.

Other examples of products include blast proof barriers which have been installed at Heathrow airport and coastal defence walls.

Poundfield made £1.5m underlying EBITDA (earnings before interest, tax, depreciation and amortisation) and £7.4m revenue in 2016. It is expected to enhance SigmaRoc’s earnings per share in the first full year of ownership.

SigmaRoc will use spare land from a previous acquisition to house a new production site in London for Poundfield whose principal operations are based in Ipswich.

Max Vermorken, chief executive of SigmaRoc, believes a London site will give it a cost advantage versus competitors due to lower transport costs of being able to serve the Capital’s infrastructure developments.

He says Poundfield has in the past had licencing agreements to serve Europe and the US which is something that will be revisited soon.

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