Insulation and supplies firm posts £31.9m pre-tax losses

International insulation and building supplies firm SIG announced full-year pre-tax losses of £31.9m compared to a £27.5m profit in 2022.

The firm’s revenues increased by 1.8% to £2.8bn, but gross margins dropped from 25.9% in 2022 to 25.3% in 2023.

It said its pan-European portfolio helped it through challenging market conditions, with  positive LFL sales growth in its UK exteriors business, 5% growth in Poland in H2, good execution in its French businesses, and its German units maintaining recent margin gains despite weaker volumes and difficult conditions,

It said restructuring in the second half of 2023 would deliver £10m annual cost savings, most of which would benefit 2024 figures, and simplified management structures in its corporate centre and UK businesses would provide better focus and efficiency.

Chief executive Gavin Slark said, “The group delivered robust results in 2023, despite ongoing market weakness, demonstrating the benefits and resilience of our diversified geographic and end-market profile.

“Alongside this, the group has also been effective in executing restructuring and productivity initiatives across the business. These are a key element of our strategic plan to drive operating margin growth over the medium-term to our target of 5%.

“By increasing focus on driving operational efficiencies, stronger commercial execution and employee engagement, the board is confident that the group’s leading market positions will continue to strengthen further when conditions improve across our markets. We remain financially and commercially well placed and are taking proactive steps to drive meaningful shareholder value in the medium and long-term.”