Building products supplier confident it can cope with weaker demand
SIG, which supplies specialist insulation and building products, has reported full year group like-for-like sales growth of 17%, with revenues of £2.74bn (2021: £2.3bn) in its results for the full year ended 31 December 2022.
Underlying pre-tax profits rose to £51.6m (2021: £19.3m) along with a substantial increase in underlying operating profit to £80m, from £41m in 2021.
Gavin Slark, chief executive officer of the Sheffield-based business, said: “Trading in the first two months of 2023 saw mid-single digit like-for-like revenue growth, with the continued effects of input price inflation more than offsetting year-over-year volume declines.
“Market conditions continue to vary across our geographic footprint, but overall we expect weaker demand conditions to prevail during 2023, offset by a continued tailwind from input price inflation, albeit the latter will continue to moderate further this year.
“With a strengthened financial position, good strategic momentum, pan-European footprint, and a diverse portfolio with opportunity for growth, I am confident in our ability to manage short-term market weakness during 2023 while maintaining a focus on sustainable long-term value creation for all our stakeholders.”
The group notes it has significantly improved its financial position since 2020, with a robust 2022 year end balance sheet.
SIG explains its broad geographic footprint, with 58% of its revenues coming from outside the UK, helped to mitigate volatile market conditions.
It enjoyed continuing good performance in France and Germany, while its UK Interiors operation returned to profitability.
Two acquisitions were completed in the year for a total potential consideration of £39m.
