Roofing firm predicts FY profits at lower end of expectations

Roofing and insulation firm SIG says uncertain demand will likely produce full year results at the lower end of expectations.

The Sheffield firm, in a trading update to the London Stock Exchange in advance of its half-yearly report due on August 8, said like-for-like revenue growth was flat over the first six months, with 2% domestic growth offset by a 1% fall in its EU business.

“Market conditions were challenging through H1 across our geographies, including a notable softening in demand in France and Germany in the last two months,” the frim said in its update to the LSE. “Volumes and market conditions were notably weaker in Poland and Ireland over the period as a whole, with both also coming up against especially strong prior year comparators.”

The firm said inflation had created a positive tailwind which added and estimate 9% to its revenues, but this was offset by lower volumes.

It said the second half would benefit from productivity initiatives and expected profit from a property move, but recent trading led it to be more cautious about a broad imnprovement in demand.

“Consequently, the board continues to expect the group to deliver full year underlying operating profit within the current range of market expectations, but towards the lower end of that range,” it said. Its expected range for full-year operating profit is from £65m to £84m.