Robust trading at building products group despite tough climate

Insulation and building supplies firm, SIG, says its full year like-for-like sales are down 4% on the prior year, with revenues of £2.61bn, in a trading update for the year ended 31 December 2024.

Noting that the market backdrop remains “challenging”, SIG says its underlying operating profit is expected to be around £25m, which is in line with market expectations.

The Sheffield-headquartered business adds that restructuring and productivity initiatives contributed to an expected year-over-year operating expenses reduction of around £31m.

Gavin Slark, CEO, said: “While demand across the European building and construction sector remained weak throughout 2024, the group delivered a robust trading performance relative to the market, through a strong focus on our customers and the great efforts of all our people.

“I remain confident that the actions we have taken, and the opportunities that exist within SIG’s portfolio for further strengthening our operating performance and accelerating growth in our specialist businesses, will enable us to deliver increasingly profitable growth over the medium term.  

“While we expect continued softness in market conditions, at least through the first half of 2025, we are confident in our ability to manage through this current phase of the cycle, while also strengthening our operations.

“We remain ready to take advantage of the significant long-term opportunities for the group as markets recover.”

SIG says a successful refinancing was concluded in October 2024, which provides certainty on funding, along with ongoing healthy liquidity.