SIG makes progress following growth strategy

SIG, Europe’s biggest insulation group, today delivered an upbeat message about its performance and said it was pleased with the way its recent string of acquisitions had been integrated into the business.

The Sheffield-based group is a leading supplier of insulation, interiors, roofing and specialist construction products across Europe.

In an interim management statement for the period from January 1, the group said like-for-like sales growth had been achieved and the number of trading sites it is involved in had increased.

SIG said demand in the UK, Ireland and mainland Europe for non-residential and industrial sectors, which make up around two-thirds of its sales, had remained “robust”.

However, it said in the residential sector, where the group makes the remainder of its sales, the market was weaker and this had impacted performance mostly in Ireland.

SIG has made 18 acquistions so far this year, adding 33 trading sites in the UK and Ireland and 21 in mainland Europe. 

The majority of purchases have been bolt-on buys, adding to its existing market positions in UK insulation, interiors, roofing and specialist construction products, and in insulation, roofing and interiors in mainland Europe.

The sum of the sales was £127m, including assumed debt, while the combined annual sales of the acquired firms is £174m.

However, to help fund further these and future acquisitions, an additional £175m of debt facilities have been secured, which takes the group’s committed debt facilities to £775m.