Better than expected growth at building products group
Building products business, SIG, says it expects to deliver full year performance significantly ahead of previous expectations.
The Sheffield-headquartered company, which has released a trading update for 1 January 2022 to date, says it has made a strong start to the year, with its Return to Growth strategy continuing to deliver excellent progress and total Group sales of £641m.
The update notes: “In addition to robust demand, we have seen further impetus to sales and profit as a result of continuing input cost inflation.
“Group sales were 25% up on 2021 for the quarter to 31 March on a like-for-like basis. This represented a performance well ahead of previous expectations, with this momentum continuing into the month of April to date.”
Steve Francis, chief executive, said: “The first four months have seen markedly stronger growth than anticipated, driving positive margin momentum across all our countries of operation.
“Demand for our sustainable construction offerings remain strong. The three acquisitions made during the last 18 months are performing well and this is an area of increasing strategic focus for us.
“Although it is relatively early in the year, and notwithstanding the current macro-economic and geo-political environment, the strength of our recent trading gives us confidence that we will now reach our initial margin target of 3% and return to cash generation this year, ahead of schedule.”