SIG builds record results
INSULATION and roofing specialist SIG today reported record results as non-residential construction work helped annual profits beat market expectations.
The Sheffield-based company, Europe's biggest insulation group, had earlier this year shrugged off worries about a downturn in the housing market.
Much of the firm's positive outlook was based on the fact that Britain's housing market accounts for only a fifth of the group's business.
This stance was reflected in today's results which saw record sales of £2.45bn for the year ended December 31, up by 32% from £1.85bn the previous year.
Underlying profit before tax increased by £31.9m to £140.1m. The figure was above the £138m which analysts had forecast in January.
Total underlying operating profit increased by 31.3% to £159.4m, up from £121.4m.
The group also saw like-for-like sales growth of 10.9%.
SIG's chairman Les Tench said: “The group's sales are more heavily weighted towards non-residential construction, both in the UK and Ireland and in mainland Europe, and it is believed that the substantial pipeline of work in progress of both public and privately funded construction programmes will continue to provide the group with attractive opportunities in its four main product sectors.
“In 2007, the group expanded its operations and trading activities significantly and these dynamics provide a strong platform coming into 2008.
“Trading in 2008 has begun well and the board believes that the group will continue its track record of outperforming across its markets. The board is confident of further progress in 2008 and beyond.”
Sales in the UK were boosted by the introduction of 39 new trading sites, while across Europe SIG expanded in France, Germany, Poland, Benelux and entered the Czech Republic and Slovakia.
The group, which is also involved in commercial interiors and specialist construction products, acquired 27 companies for £323m last year, which together contributed £217m of sales.
So far this year, SIG has completed eight acquisitions for a consideration £32m.
A final year dividend of 18.7p per share has been proposed, taking the full year dividend to 26.7p, up from 20.5p in 2006.
