Strong first half for SIG
BUILDING products group SIG said today it expects pre-tax profit to be at least £40m for the first half of the year.
For the six months ended June 30, the Sheffield-based group saw group sales from continuing operations increase by around 6.5% to £1.285bn.
It said, as a result underlying profit before tax in the period will be around £40m, up from £33.6m on last year, despite being adversely affected by the strengthening of sterling against the euro.
“As anticipated the group’s trading performance moderated during the period as comparatives strengthened, with like-for-like sales increasing by 2.9% in May and June combined. This follows a strong start to the year which also benefited from the mild winter,” said SIG.
Like-for-like sales in the first half increased by 11.5% in the UK & Ireland and 3.2% in Mainland Europe, with France ahead by 2.1% and Germany up by 5.1%.
“While construction markets in Mainland Europe remain variable, with France continuing to decline, the outlook for the UK remains positive,” the group said.
“The group’s first half performance provides a strong platform from which to deliver its full year expectations, which remain unchanged despite adverse movements in foreign exchange rates.
“SIG continues to expect to achieve good progress in 2014 based on the trading environment, operational efficiency savings and a modest net benefit from the strategic initiatives.”
SIG is a leading distributor of specialist building products in Europe with its core markets being insulation and energy management, interior fit out and roofing products.
