Chief executive of building supplies firm “disappointed” as revenues dip to £2.6bn

THE chief executive of building supplies firm SIG has said he was “disappointed” in the performance of the company.

Revenue dipped at the Sheffield-based firm to £2.57bn for the year to 31 December 2015, from £2.60bn the year before.

Pre-tax profits for the business, which supplies insulation, exteriors and interiors to the building industry, increased to £51.3m for the period, from £39.0m in 2014.

Foreign exchange affected outcomes, as well as the acquisition of 12 infill businesses over the course of 2015, which cost SIG £78m.

Stuart Mitchell, chief executive, said:”While making good progress on the Strategic Initiatives and infill acquisition programme, we were disappointed by the Group’s 2015 performance, having been adversely affected by weak trading conditions in Mainland Europe and the UK RMI market, as well as movements in foreign exchange.

“We have already taken a number of actions to improve performance including further increasing our customer focus, reducing procurement and supply chain costs, and growing our value added businesses.

“This year we continue to expect good growth in the UK new build construction market, primarily driven by the residential segment. Lead indicators also suggest that demand should pick up in the UK RMI sector as 2016 progresses.”

Mr Mitchell said that the trajectory of any recovery in European trade was uncertain, trading conditions in France were improving.