Member Article

Sheffield’s SIG on track to achieve £30 million target

SIG plc, the Sheffield-based distributor of specialist building products in Europe, has reported that it is well on the way to good results.

Group sales from continuing operations increased by c.6.5% in the first half to c.£1.2 billion. As a result underlying profit before tax in H1 is expected to be at least £40 million (H1 2013: £33.6 million) despite being adversely affected by the strengthening of Sterling against the Euro.

The Group’s trading performance moderated during the period as comparatives strengthened, with like-for-like sales increasing by 2.9% in May and June combined. This follows a strong start to the year which also benefited from the mild winter.

Like-for-like sales in the first half increased by 11.5% in the UK & Ireland and 3.2% in Mainland Europe, with France ahead by 2.1% and Germany up by 5.1%.

SIG said that it continues to make good progress on its strategic initiatives to improve business performance and is on track to achieve its £1 million - £5 million net benefit target this year and remains committed to delivering its target of c.£30 million in 2016.

The statement read: “While construction markets in Mainland Europe remain variable, with France continuing to decline, the outlook for the UK remains positive.

“The Group’s first half performance provides a strong platform from which to deliver its full year expectations, which remain unchanged despite adverse movements in foreign exchange rates.

“SIG continues to expect to achieve good progress in 2014 based on the trading environment, operational efficiency savings and a modest net benefit from the strategic initiatives.

This was posted in Bdaily's Members' News section by Clare Burnett .