Tough market conditions hit performance at building products group
Sheffield-headquartered SIG, which supplies specialist insulation and building products, says it has contended with weaker trading conditions across all its geographies, as it releases its results for the six months to 30 June 2023.
The business reports group revenue of £1.4bn, representing flat like-for-like revenue compared to the prior year. Pre-tax profits were £12.2m, down from £26.2m in the first half of 2022.
SIG says market conditions were difficult through H1 across both its EU-based businesses (58% of the group’s revenue) and in the UK (42% of revenue).
Gavin Slark, chief executive officer, said: “Our performance in the first half reflects the challenging market conditions we are currently facing, with the group’s like-for-like revenue growth flat year-on-year.
“Despite these conditions, I’m very pleased with the progress we are making on many fronts to improve the business, notably with the initiatives across our Operating Companies to improve our ability to drive higher levels of profitable growth when market conditions recover.
“Looking ahead, while we expect market conditions in the second half to remain difficult, we remain confident the business will grasp the opportunities it has to continue to improve its underlying operational performance.
“This will, in turn, deliver higher levels of profitability as we drive towards our medium-term margin target of 5%.”
SIG adds it will continue to focus on cost discipline and on ensuring that it has the appropriate level of cost and investment in place, in the right areas.
