SIG warns of ‘challenging’ markets

BUILDING products supplier SIG has bought a Dutch insulation business as it looks to strengthen the business in tough trading conditions.

SIG revealed this morning that sales in the first half were flat compared to the previous year as the construction industry battles tough weather conditions alongside the wider economic challenges.

However, when the impact of the weaking Euro is taken into account, sales fell by 4% in Sterling terms.

The company bought the £1.5m turnover business in the Netherlands as it continues a wider European expansion strategy which has seen it open 11 branches in mainland Europe alongside four in the UK this year.

Updating shareholders today, SIG said that the Olympics was likely to disrupt trading in London and that more broadly markets would remain “challenging” this year.

Debt has fallen to £130m at the end of June, a reduction of around £33m on last year’s figure.