SIG H1 profits climb 32pc as UK strength offsets European weakness
Building products supplier SIG Plc posted a resilient set of H1 figures on Tuesday, with improved execution and cost savings helping offset continued weakness in European construction markets.
SIG said revenue was broadly flat year-on-year at £1.3bn, but underlying operating profits rose 32% to £15.4m, driven by £21m in cost savings, an improvement in underlying operating margins from 0.9% to 1.2%, and stronger performance in key UK segments.
UK Interiors reported an 8% like-for-like sales growth and a £4m profit improvement, swinging back to profitability, while UK Roofing also delivered solid gains. However, market softness persisted across France and Germany, and SIG booked a £22.1m impairment charge related to its Miers unit and fleet assets.
SIG also opted not to declare an interim dividend, but reiterated its commitment to reinstating payouts once profitability stabilises. SIG kept its FY guidance unchanged.
Chief financial officer Ian Ashton 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."
Reporting by Iain Gilbert at Sharecast.com
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