SIG ‘leaner and stronger’ in 2012 – Davies
INSULATION and building products distributor SIG has posted pre-tax profits of £7.5m after selling a series of businesses.
Chief executive Chris Davies said the company started 2012 “stronger and more focused” after disposing of its interiors manufacturing, scaffolding and safety and workwear businesses last year.
The statutory pre-tax profit of £7.5m followed an £80m loss in 2010. Underlying pre-tax profits, stripping out the effect of the sold businesses, increased by 27% to £81.7m.
Sales from continuing operations grew by 7.8% to £2.7bn as debts at the Sheffield-based company fell by £69.1m to £115.9m.
Mr Davies said: “We are pleased with these results and the progress we are making. I would highlight in particular the success of our organic growth strategy, with new branches moving into profitability more quickly than anticipated.
“We enter 2012 as a much leaner, stronger and more focused organisation. Sales per day in constant currency so far this year were around 1% ahead of strong prior year comparators, despite the impact of severe weather across Mainland Europe in February this year.
“Given the current uncertainties in the macroeconomic environment, we continue to expect market volumes to be slightly down overall in 2012. However, we have a solid platform on which to build and are targeting further market outperformance, with new branches expected to make a significant contribution to future growth.”
The company is proposing a final dividend of 1.5p per share, bringing the total dividend for the year to 2.25p.
