Stronger than forecast profits at building materials supplier
Sheffield-based building materials supplier, SIG, says it has so far successfully managed material shortages and cost price inflation, with minimal impact from these issues in half one.
The listed business has today published its results for the six months to 30 June 2021, which include revenues of more than £1.1bn (H1 2020: £839m) and an underlying pre-tax profit of £3m (H1 2020: £53.8m loss)
Group like-for-like H1 sales were up 33% on the prior year, and 1% up on 2019. And group sales excluding the UK distribution business were up 8% on 2019, with UK Distribution itself now back on track.
SIG says its continued balance sheet strength provides it with confidence to invest in its growth strategy and to manage near term supply challenges.
Steve Francis, chief executive officer, said: “I’m delighted with the progress of our Return to Growth strategy: our customers, supplier partners and colleagues continue to affirm that our focus on empowered and entrepreneurial local teams, delivering exceptional service and expertise to our customers, is a successful approach for building back our market share and profitability.
“The strong revenue growth across our broad product offering, together with disciplined margin management, has been key to delivering an earlier and stronger profit than previously anticipated.
“Trading in July and August has continued to be solid and we expect continued profit improvement through H2 2021, despite the ongoing impact of material shortages and cost price inflation.
“As a result, providing the disruption from these headwinds does not worsen, we now anticipate full year underlying operating profit will be ahead of our prior expectations.”