SIG warns on half year performance

SPECIALIST building products distributor SIG today said trading conditions had remained challenging since the start of the year and that harsh weather would hit its half year results.

However, the Sheffield-based group said that it continued to outperform its markets in the first quarter, by around 2%.

European construction markets have continued to be affected by the harsh winter weather, which continued through to mid-April.
 
Group sales per day from continuing operations fell by around 2.5% in Sterling and by around 4% in constant currency for the first four months compared to the same period last year. 
 
Trading improved from mid-April onwards as the weather conditions reverted to seasonal norms.
 
SIG has purchased four businesses so far this year for a combined total sum of £13m.  
 
Law firm Pinsent Masons advised on on the acquisitions of SK (Sales) and United Roofing.
 
Based in Norwich, SK (Sales) is a specialist distributor of air handling products with branches throughout the UK.
 
United Roofing Limited is a distributor of roofing materials and associated products based in Devon.
 
The Pinsent Masons teams advising on both acquisitions were led by corporate partner Philip Goldsborough, supported by Louise Blair on the SK (Sales) transaction and Anaick Summers on the United Roofing transaction.
 
Commenting on the outlook, SIG said: “The combination of challenging markets and harsh weather in the first four months of the year is expected to affect SIG’s first half performance adversely, as the group does not anticipate that the shortfall in sales to date will be fully recovered in May and June. 

“However, management has moved quickly to mitigate the impact on the full year by tightening discretionary expenditure.”