SIG on acquisition hunt as CEO steps down

SIG enjoyed record sales and profits last year and is on the hunt for acqusitions to help it cope with a market which it believes can only get bigger.

The Sheffield-based insulation products supplier is benefiting from the drive to reduce energy consumption and in a trading statement today it said total sales increased by 32% last year to £2.45bn while it expects its underlying profits for the 12 months to December 31 to be not less than £139m, an increase of £30.7m or 28% on 2006.

It will announce its full-year results on March 13.

It is unlikely to be hit by the slowdown in the housing market as much of its work is on office and other buildings for clients in both the public and private sector.

It also announced today that chief executive David Williams is stepping down after six years at the helm and 24 years at SIG.

Mr Williams, who will take early retirement at the end of June, will be replaced by the group's European managing director Chris Davies who has been appointed deputy chief executive until he takes up the top job on July 1.

After a record year making 27 acquisitions for £325m in 2007, SIG signalled today that it will continue to buy as it looks to add more trading sites across the UK, Ireland and mainland Europe.

Last year its UK sales increased by 21% while European sales were up by 53%.

Mr Williams said: “The board believes that the group's largest single product group, that of insulation and related materials, will continue to increase in demand at a faster rate than other building materials due to the now global drive to reduce energy consumption. Over time, we expect to see further increases in regulations and other initiatives introduced to stimulate demand for insulation. In the UK, we are presently investing to increase capacity to meet the expected increased demand driven by the new scheme for upgrading insulation in existing homes, which begins in April 2008 and runs for three years.”

Looking ahead, Mr Williams said that SIG's expansion programme would enable it “to continue its track record of outperforming market conditions”.

“The group is in excellent shape and the board is confident of further progress in 2008 and beyond,” he added.

Commenting on his departure, Mr Williams said today: “At the age of 57 and after 24 highly enjoyable years with SIG, including 14 on the board and six years as chief executive, I have decided that I would like to have some time to pursue other interests and have therefore decided to retire.

“I will work closely with Chris over the coming months to ensure that we achieve a smooth transition. Chris is a first class operator and is widely respected

within SIG and the wider industry.

“I am confident that SIG has a great future with Chris at the helm.”

Chairman Les Tench, chairman, said: “David had made it known for some time that he wished to take early retirement for personal reasons in 2008 subject to a suitable successor being in place.Following a comprehensive search both internally and externally, I am pleased to announce Chris Davies' selection as his replacement. On behalf of the board, I would like to thank David for his considerable contribution to SIG over the last 24 years and particularly during his time as chief executive.”

Mr Davies joined SIG in 1994 as a general manager in its UK insulation business before moving on to more senior positions. He has held the MD Europe role since 2001 with responsibility for the group's insulation, roofing and commercial interiors operations on the continent and was appointed to the main board las February.