Weak demand continues to impact building products group’s markets

Insulation and building supplies firm, SIG, says its group like-for-like revenues fell 4% to £662m compared to the prior year in a trading update for the three months to 30 September 2024. (quarter three)

The Sheffield-headquartered business notes this decline compares to a 7% drop reported in half one.

SIG says it continues to perform well “relative to its markets” and is delivering on cost reduction and efficiency objectives reported at its half year results in August.  

SIG says these initiatives are helping support near-term performance, but will also help drive higher profitability as markets recover.

It adds underlying operating profit expectations for the full year remain unchanged and in line with market forecasts of £25.4m – within a range of £24m to £27m.

A spokesman for the business said: “Whilst weak demand has continued to be a factor in the majority of the group’s markets, reflecting the ongoing softness in the European building and construction sector, like-for-like performance improved sequentially in quarter three as expected.

“This was despite the effect of strategic branch closures, which form part of the restructuring programmes in the UK, Germany and France, and which impacted the group like-for-like performance by about 1% in the period.

“The group continues to make good progress on its strategic and operational initiatives. These have included permanent cost restructuring to lower central and operating company overheads, as previously reported.

“Continued focus on cash generation has ensured the group retains good levels of liquidity, providing a solid base for the Board to continue its evaluation of the optimal approach to the refinancing of the group’s debt facilities ahead of their maturity dates.”