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Enterprise

SIG appoints new CEO but signals start of search for successor

Pim Vervaat will take charge of the Sheffield firm in October but will switch to become chair 18 months after that

SIG plc headquarters in Sheffield.(Image: Google Streetview)

Building supplies company SIG plc has appointed a new CEO - but the company has already signalled the start of a search for his successor.

The Sheffield-based firm has appointed Dutch national Pim Vervaat 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 has served as the CEO of European industrial companies including Constantia Flexibles and RPC Group. He will start work as CEO in October but 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.

Mr Allner said: "The board is delighted to announce that Pim has agreed to join SIG as its CEO and non-executive chair designate. He has significant experience of operating in decentralised European businesses and a strong track record of delivering shareholder value. The Board looks forward to working with Pim on SIG's growth and development."

Separately, SIG has released a half-year trading update in which like-for-like revenues rose 1% to £1.31bn. Sales in the º£½ÇÊÓÆµ increased by 5% but poorer sales in France pulled down its European revenues.

The company said its underlying operating profit for the first half of the year was expected to be around £15m, up from the £12m recorded a year ago. It said productivity initiatives had partially offset continued softness in market demand.

In the trading update, SIG said: “Demand in all markets remains well below historical levels, and trends in the second quarter were similar to those experienced in Q1, with European construction at a low point in the cycle.

“Ongoing commercial and operational initiatives are enabling the business to outperform these local markets. In particular, the º£½ÇÊÓÆµ 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 º£½ÇÊÓÆµ roofing business continues to perform strongly.