Construction supplier SIG Plc has hailed a robust half year’s trading against a backdrop of subdued markets.
The Sheffield-based firm has issued results for the six months to June 30, showing a 1% lift in like-for-like sales year on year to £1.304bn, with like-for-like volumes up 2%. The firm says continued pricing pressure in the market more than offset modest inflation on input costs, leading to a 1% reduction in pricing.
Revenues were 1% down on figures for 2024, reflecting an impact of 1% in aggregate from working days and exchange rates, as well as a 1% net impact from branch closures and openings.
It posted underlying operating profit of £15.4m, up from £11.7m, and underlying Ebitda of £54.1m, up from £51.6m. Overall net assets decreased by £31.7m to £148.1m from £179.8m at 31 December 2024.
Bosses said commercial and operational initiatives are helping the group to outperform in local markets in which it operates, but that demand in all markets remains well below historical levels. It also said it did not see the expected pick-up in demand towards the end of the period.
The firm said: “Against this backdrop, the Ƶ Interiors business has delivered significantly improved top and bottom-line performance as a result of actions taken by the management team over the last nine months, and the Ƶ roofing business continues to perform strongly. The German and French businesses are continuing to perform robustly relative to particularly challenging markets.”
The group said its 2025 full year outlook remains unchanged.
Ian Ashton, chief financial officer, said: “The group’s robust trading results in the first half reflect continuing outperformance of markets that remain subdued. Cost, productivity and cash initiatives have remained a key focus in the period, as has the ongoing implementation of strategic and operational improvements that are positioning the group to win in the long term.
"These actions have benefited the first half and underpin the anticipated outcome for the year, and as such our outlook for 2025 remains unchanged. We continue to make good progress in creating better performing businesses across the group, which will help to significantly improve our future profitability and cash generation when markets recover.”
Meanwhile, it confirmed that new CEO and Chair designate Pim Vervaat will join SIG from October 1, as announced earlier this month.
Mr Vervaat was appointed as its new chief executive officer and chair designate, following the resignation of Gavin Slark in May. Mr Slark has been placed on gardening leave. Mr Vervaat is likely to switch to become chair 18 months later to replace Andrew Allner. SIG said a process to identify a new CEO would be undertaken in advance of that handover.
