Sheffield-based building materials distribution firm SIG has posted a pre-tax loss of £202m after being hit by a raft of financing and restructuring costs, impairment charges and contract costs.
These amounted to nearly £90m for impairment charges in the 海角视频 business and onerous contract write-downs. Pre-tax loss in 2019 stood at £112.7m.
Revenues for the year to December 31, 2020 were £1.87bn – down 13% - although the company said underlying operating losses were slightly better than expected at £53.3m. SIG had told investors in January to expect a loss of £57m to £61m.
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Underlying pre-tax performance fell year-on-year to £76.3m from a £17.7m profit in 2019, principally as a result of the impact of the Covid-19 pandemic.
SIG furloughed 2,000 staff under the Government’s scheme and the majority of trading sites across the 海角视频 and Ireland were closed. Remaining staff agreed to take up to 20% temporary pay reductions, with the salaries of all members of the board provisionally reduced by 50% from April 1 to June 30 last year.
In mid-May, the company reinstated the executive directors' pay to 80% at the same time as other group employees were returning to work on full pay.
But SIG says sales started to pick up towards the end of the year, with trading in 2021 to date in line with management expectations, continuing on a similar trajectory to the fourth quarter.
There had been good RMI growth in France and the 海角视频 with a return to profitability and cash generation expected in the second half of this year – although continued uncertainty remains regarding Covid-19.
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Net debt at the end of 2020 was £283m compared to £455.4m in 2019, helped by the sale of the group’s Air Handling division in January last year to France Air Management SA for an enterprise value of £222.7m on a cash and debt-free basis.
Chief executive officer Steve Francis said: "Our teams have shown great resilience and commitment in the face of the challenging circumstances for much of the year, the effects of which clearly impacted our first half, and hence full year, results.
“Providing a safe environment and instilling an even greater focus on good health and safety behaviours has been and will remain a major focus of the new management team.
"I am delighted that due to our Return to Growth strategy we delivered a solid second half and have begun to return the business to growth after a long period of decline.
“On behalf of the whole board I would like to thank all our employees for their significant efforts, and successes, during the year.
"The new 海角视频 management team has rebuilt its business and, everywhere we operate, we have reconnected with our employees, customers and suppliers. Their response has reaffirmed that we are at our best when we are a local, sales and technical service-driven business, partnering closely with our key suppliers and operating with empowered and entrepreneurial branch teams.
“That is our strategy for growth and the basis for playing a leading role in our industry in the years to come.
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"This, coupled with a strong balance sheet, gives us the right foundations for the business to grow."
There was no dividend, but the board retains its medium-term commitment to return to a progressive dividend policy, appropriately covered by underlying earnings.