Transformation programme helps group build for the future despite European challenges
SIG is building for the future as its strategic initiatives prepare the Sheffield-based group for growth.
Stuart Mitchell, chief executive of the building products group, said it has “delivered a robust first half performance against a strong comparative period” as its business transformation programme made an impact.
Its interim dividend was increased by 19%, to 1.69p, although its underlying pre-tax profit for the first half of 2015 was down £3.9m to £39.1m. It acheived revenues of £1.24bn, which were down 2.7% but showed a 3.1% increase on a constant currency basis. The group attributed this to “variable trading conditions in mainland Europe, increasing competitive pressures and a significant weakening of the Euro”.
Mr Mitchell added: “The first stage of the Group’s business transformation programme, to improve procurement, is increasingly embedded within SIG and delivering significant savings. The next stage, a review of our supply chain, is progressing well with findings to be presented towards the end of this year.
“Our outlook for the year is broadly unchanged although underlying market conditions are resulting in margin pressure, which will offset some of the benefit from our strategic initiatives. Assuming the improving sales trend in mainland Europe continues we expect to make year-on-year progress, with results H2 weighted as anticipated.
“Looking further ahead the group is encouraged by the clear opportunities to improve efficiency in the business, particularly in procurement and supply chain, and to drive growth as our markets recover.”
SIG has three divisions – insulation and energy management, roofing and interiors – and mainly distributes other companies’ products, although it does make some bespoke products. It employs 9,000 people, predominantly in Europe while it also has a presence in the Middle East.
