SIG expecting top end profits
SPECIALIST insulation and building products business SIG today said it expects underlying 2011 profits to be ahead of analysts’ expectations.
The Sheffield-based business said group sales from continuing operations were £2.7bn in the year to December 31, an increase of 7% on the previous year.
SIG said it expects underlying pre-tax profits to be “marginally” above the £80.4m some analysts have predicted.
SIG said trading towards the end of the year benefited from the relatively mild weather.
However, it is looking to make around £5m of further annual cost savings through the closure of some of its branch network.
The company distributes products throughout Europe, and benefits from strong positions in its core markets of insulation and energy management, interior fit out and roofing.
“Accordingly, future growth initiatives will be based on carefully selected investments in new trading sites concentrated in these areas,” SIG said.
The company disposed of its interiors manufacturing, scaffolding and safety and workwear businesses last year.
SIG said that following John Chivers’ retirement from the group, it has appointed Robert Barclay, previously managing director of SIG Distribution, to the new post of managing director UK and Ireland.
SIG added: “Whilst trading in the last quarter of 2011 remained resilient, the recent weakening in the macroeconomic outlook for both the UK and mainland Europe leads the group to expect that market volumes will be slightly down overall in 2012.”
Net debt was reduced from £163m at June 30 to £120m at December 31. SIG will announce its preliminary results on March 14.
