SIG sticks with guidance, but LFL growth falters in Q3
Insulation and building products group SIG Plc has reiterated its full-year outlook but reported no growth in underlying sales in the third quarter.
Like-for-like revenues were flat year-on-year over the three months to 30 September, following a 1.5% increase in the first half, as "subdued demand" persisted across the company's market, "with no material signs of market recoveries during the period".
Pricing pressure continued to more than offset modest inflation on input costs, leading to a net 1% reducing in pricing during the period.
LFL sales in the UK - which accounts for just below half of group revenues - increased by 1% to £298m, while LFL sales across the EU declined 2% to £366m. Particular weakness was seen in Germany, which "weakened unexpectedly" with a 5% drop in LFL sales to £112m.
"Demand in all markets remains well below historical levels, with European construction at a low point in the cycle and with longer than anticipated delays to the start of meaningful recovery," the company said.
Looking ahead, the outlook for full-year underlying operating profit remains unchanged, with the company-compiled consensus estimate at £31.6m, up from £25.1m in 2024.
"I am [...] pleased to see the robust trading performance in continued difficult market circumstances, and the strong focus of the teams on managing both costs and working capital," said new chief executive and chair designate Pim Vervaat, who joined at the start of October.
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