Growing momentum in ‘pivotal year’ at building products group

Sheffield-based SIG says it has returned to underlying profit, as it releases its results for the full year ended 31 December 2021.

The building products business recorded underlying revenues of £2.3bn in 2021 compared to £1.9bn in 2020.

In the same period, underlying pre-tax profits were £19.3m (2020: £76.1m loss).

Steve Francis, chief executive officer, said: “2021 was a pivotal year – accelerating progress on our strategy has returned the Group to profitability ahead of expectations, delivering above market growth rates and consistent margin improvement, the result of record performance in France and Poland, and strong turnaround in the UK.”

“In uncertain times, SIG demonstrated in 2021, as it has in previous decades, its ability to manage successfully through inflationary and volatile market conditions, thanks to our strong relationships with suppliers and customers, and the quality of our people.”

“Growth momentum, resilience of our businesses, and experienced leadership all underpin our confidence in the organic growth path towards 5% underlying operating margin in the medium term.”

SIG adds its success has been driven by market share gains and margin discipline in “challenging” supply markets.

And it has highlighted accelerating revenue growth throughout 2021 against pre Covid-19 2019 comparators.

A €300m/£253m bond issue in November 2021 further increases financial stability and longer-term flexibility for the group.

The business says trading in 2022 has so far progressed well and ahead of plan, with ongoing supply challenges being managed.

Commenting on the pandemic’s impact it states: “Despite various lockdowns and restrictions throughout the year, the business was able to trade broadly as normal, albeit within the new operating norms and protocols.

“The Irish market was, uniquely in the Group, impacted by further government restrictions on construction from January until May 2021.”

SIG also notes: “With no direct exposure to Russia or Ukraine, we are currently not seeing any significant impact on our business arising from the current conflict, but we will continue to monitor the situation closely. 

“The conflict, and the response to it, could affect, amongst other things, energy prices, commodity supply, and exchange rates. This is alongside the existing global backdrop of inflationary pressures.

“In the near-term we are anticipating some remaining impact from material shortages, but these are gradually abating.”