Sales rise at SIG

INSULATION group SIG today reported an 8% rise in group sales in the first four months of the year.

SIG said all divisions in the UK and Ireland have shown growth, with the exception of Interiors Manufacturing, which continues to be impacted by weak trading conditions in the non-residential sector, and Energy Management, where CERT funding is materialising but has not yet been fully reflected in trading.

In SIG’s principal markets in Mainland Europe, good progress has been made in France, Germany and Poland and Central Europe but it said trading conditions in Benelux continue to be challenging.

The company recently sold its UK scaffolding and fencing sale and hire business to Altrad Group S.A. for £7.1m in cash, with the potential for a further contingent receipt of £1m depending on future profits.

In 2010 the business reported a small underlying operating loss on sales of £25.4m and was forecast to make a small profit in 2011.

SIG said: “Trading for the first four months of the year has been in line with management’s expectations, based on more stable market conditions and the measures taken to improve business performance.

“Given the uneven pattern of comparators in the first half of last year, it will be mid-year before the group has a better view on the expected full year performance.

“However, sales growth for the remainder of the year is expected to moderate further due to a combination of stronger comparators and the potential impact of UK Government expenditure cuts.

“The board continues to believe that the group is well positioned to make progress through 2011.”