Sales and profits rise at building products group
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Construction products supplier SIG plc says its solid trading performance seen in July and August has continued through September.
The Sheffield-headquartered business, which has published a trading update for the third quarter of its financial year ending 31 December 2021, says its like for like sales growth in quarter three was up 17% compared to the prior year.
This follows the 33% rise reported in half one, through this figure was distorted by the material Covid impact in 2020.
Against pre-Covid 2019 comparatives, quarter three growth was 9%, up from the 1% growth seen in the first half.
SIG adds its UK Distribution performance provided the principal driver for the acceleration during the third quarter, with the business moving, as expected, back to growth.
The company’s France and UK Exteriors businesses, and its Poland business, continue to perform very strongly.
Ireland was, as anticipated, a further driver for the third quarter acceleration, rebounding after the first half impact of local Covid-related restrictions.
Profitability continued to improve in the quarter compared to the first half, despite the typical modest seasonal dip in sales volumes in August.
SIGs outlook statement notes: “Whilst supply issues persist across many product groups, order books continue to build and the outlook for materials shortages has become clearer.
“We are mindful of the potential impact of these shortages should the situation persist for an extended period, but remain highly confident in the effectiveness of our supply chain management and commercial agility.
“As a result of the continued strong sales momentum and operating performance, we are now more confident in our near term outlook and expect full year underlying operating profit to be ahead of current market forecasts.”