ON AIR NOW:

Revenues fall at SIG plc in struggles for construction sector

Building products supplier SIG plc has issued a profit warning after seeing sales decline further in recent months.

The Sheffield-based group – which earlier this year posted a 93% drop in operating profits – has said that market conditions have remained challenging, with sales declining 7% in May and June compared to the same period last year. Full-year operating profit was expected to be between £20m and £30m, below analysts’ expectations.

In a trading update to the Stock Exchange, SIG said that it was continuing to drive cost reductions and efficiency initiatives, and expected to do better in the second half of the year. It said those measures would also drive higher profitability as markets recover.

  • Read more: Jobs to go at Woodsmith project
  • Go here for more Yorkshire business news
  • SIG said ongoing struggles for the building and construction sector were a major factory in its own challenges, particularly in France and Germany, and in its UK interiors business.

    It said it had been making good progress on cost restructuring to lower central overheads and modernise parts of the business. It was also prioritising effective working capital and cash flow management.

    SIG said: “Given the weaker than expected trading in recent weeks and a consequently more cautious view of the timing of any potential market improvements during H2, the board now expects our full year 2024 underlying operating profit to be in the range of £20m-£30m, which is below the current analyst range. The increasing benefit from productivity and cost initiatives underpins our continued expectation of a stronger second half. The extent of this improvement is subject to the evolution of demand conditions, particularly given market uncertainties in France and Germany, and recognising the sensitivity of operating profit to relatively small movements in sales.

    “Whilst market conditions remaining challenging in a majority of areas, the board continues to expect its strategic and commercial initiatives to benefit medium term margin and profit growth, also supported by meaningful operating leverage when market volumes recover.”

    SIG will publish half-year results on August 4.

    Original artice – https://business-live.co.uk/all-about/yorkshire-humber

    Scroll to Top