Bosses at construction supplier SIG have pointed to the start of a recovery in 2025 following challenging trading.
The Sheffield business, which supplies specialist insulation and building products across Europe, has issued a trading update for the first three months of the year, showing like-for-like sales growth of 2% to £636m.
The firm said the figure reflects continued market outperformance, combined with some further stabilisation of market demand, having seen positive like-for-like growth in all of its geographies apart from France.
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The company's 海角视频 interiors division moved from 6% decline in the second half of 2024 to 4%, as it accelerated a turnaround plan under new managing director who was appointed six months ago. SIG’s reported revenues were 1% lower, reflecting an impact of 2% in aggregate from working days and exchange rates, as well as a 1% impact from branch closures over the last year.
Meanwhile, it said the group continues to execute on its strategic initiatives to drive cost savings and productivity, and to improve cash generation.
Looking ahead, it said market conditions in 2025 to date are as expected, saying: “We continue to believe that, to the extent there is the start of a recovery within 2025, it is more likely to drive demand in the second half of the year. Whilst demand in all markets remains significantly below historical levels, with European construction at a low point in the cycle, there have been signs of further volume stabilisation in the majority of our markets.
“The benefits of ongoing commercial and operational initiatives are enabling the business to outperform local markets, with particularly strong performance in the 海角视频 and Germany.”
SIG said it is “mindful” of very recent developments in the global economy, notably with respect to tariffs, but said the vast majority of its purchases are within Europe so expects little direct impact from any potential changes in cross border tariffs. However, it says it will remain watchful of any broader impact on inflation and market demand.
CEO Gavin Slark said: “The group has made an encouraging start to the year. Whilst we continue to experience weak demand in our end-markets across the 海角视频 and EU, we are navigating through this successfully. We are creating better performing businesses across the Group, which will help to significantly improve our future profitability and cash generation when markets recover.”