SIG cautious about future
SIG, the specialist supplier of insulation, exteriors, interiors and specialist construction products across Europe, has said it continues to be cautious about its prospects after posting a half year loss this morning.
Despite the Sheffield-based group seeing trading improve in the latter part of its half year to June 30 because of improved weather, sales for the period were down 4% on the first half of 2009 at £1.29bn. This was in line with management’s expectations.
Sales in SIG’s UK and Ireland and mainland Europe markets were hit but the group said it had made an “encouraging start” to the second half of the year.
Total operating profit increased from £2.7m in the first half of 2009 to £11.4m in the first half of 2010. However, underlying profit before tax was £18.5m, a decrease of 16% on the first half of 2009.
Total loss before tax reduced from £9.2m in 2009 to a loss before tax of £2.2m.
The firm’s underlying basic earnings per share decreased to 2.1p, a reduction of 51%. Net debt reduced by £28m from £255m at December 31, 2009, to £227m at June 30, 2010.
SIG’s chairman, Les Tench, said: “Although overall sales trends since the end of the first quarter have been encouraging, SIG’s management remains cautious on how its markets will develop over the next few months.
“This caution is based on the continuing macroeconomic uncertainty and concerns about the potential impact of government austerity measures and credit availability on the timing and path of the construction markets’ recovery.
“Accordingly, across the group’s businesses the focus remains on driving through the operational benefits of the major restructuring changes made over the last two years, protecting and enhancing SIG’s strong market positions and gross margins, and making further cost savings as appropriate, to rebuild profitability.”
