SIG sales improve in tough market

CONSTRUCTION products supplier saw sales rise by 3% in the last four months compared to the same period last year and has warned that its markets remain “very competitive”.

The company said this morning that it was confident of meeting market expectations that pre-tax profits for the year will hit £61.3m.

In a stock market update, SIG said its end markets had stabilised with aggregate sales boosted by a “gradual improvement” in residential construction markets.

Sales in the UK in constant currency terms are down 3% compared to the previous year, offset by a stronger performance in mainland Europe where sales are up by 1% since the end of June, compared to the same period last year, and up 6% in the second half.

France, Germany and central Europe have seen the biggest growth while trading remains challenging in the Benelux countries, the company said.

The statement said: “Although residential construction is expected to show modest improvement, and private sector non-residential activity should stabilise during the course of the first half of the year, there is nevertheless some downside risk to consumer confidence and spending as a result of Government fiscal and austerity measures being taken across Europe. 

“Markets are expected to remain competitive and gross margin pressures are unlikely to ease.”