Profits increase at building group despite referendum wobble

BUILDING products group SIG has seen underlying profits increase by 20%, crediting strategic initiatives for “offsetting” a challenging backdrop.

Group revenues increased 10.6% to £1.38bn in the first half of the year, although like-for-like sales were ony slightly ahead, up 0.7%. Its growth was due to acquisitions contributing 4.6%, foreign exchange 4.0% and working days boosted sales by 1.3%.

Underlying pre-tax profits increased to £47.7m and it has declared an 8% increase in the dividend, to 1.83p.

Stuart Mitchell, chief executive of the Sheffield-based group, said: “The group delivered a solid first half performance with good progress on its strategic initiatives offsetting the twin pressures of variable trading conditions, particularly in Mainland Europe, and a competitive market environment.”

He said the group saw a “slowing” of activity in the UK construction market either side of the EU referendum but “there was some improvement in trading as July progressed”.

He added: “Clearly the uncertainties caused by the referendum have made it more difficult for us to assess the trading outlook, particularly in the near-term.”