SIG hails “significant progress” despite sales decline

Building materials supplier SIG has said it has taken “radical actions” to deliver better performance as it reported an anticipated 2.6% reduction in sales this morning.

In a trading update, the Sheffield-based business said that it had made “significant” operational and financial progress in the first months of 2019. It said this was as a result of the margin and cost actions taken in 2018.

The company has been reducing staff and operating costs this year as it looks to reverse its sales decline. This decline has seen revenues in the second half of 2018 reduce by 4.3%, and a 2.6% like-for-like decrease in the period from January to April 2019.

SIG Exteriors and the group’s business in Ireland returned to life-for-like growth in the most recent period, aided by improved sales performance and the better weather conditions in February and March compared with 2018. Its French business was looking strong until a ransomware attack in April which severely affected sales.

In the UK & Ireland, including SIG Distribution, life-for-like revenues were down 9.2%.

In a statement, SIG management said: “Trading conditions remain challenging and the outlook in many of our end markets remains uncertain, notably in the UK.

“The board believes it can sustain the pace of transformation during 2019 and, providing there is no further deterioration in market conditions, the board remains confident, despite any impact of the French ransomware attack noted above, that the underlying profitability for the full year will be delivered in line with management expectations.”