SIG experiences 'strong revenue growth' in H1

Insulation and roofing products supplier SIG said on Wednesday that it had witnessed "strong revenue growth" in the six months ended 30 June, leading to a better than previously expected interim underlying operating profit.

SIG stated first-half revenues were "strong", with like-for-like growth of 33% when compared to the Covid-affected previous year and up 1% against 2019.

As a result, SIG now expects to report interim revenues from underlying operations of roughly £1.11bn and an underlying operating profit of approximately £13.5m.

"Both include good progress in the UK, and we expect the UK business as a whole to be just over break-even at the underlying operating profit level for H1, ahead of plan," said SIG.

The London-listed group stated it had finished the period with net debt of £58.0m, on a pre-IFRS 16 basis, and with gross cash balances of £174.0m.

SIG said: "The return to profitability in H1 was faster and more significant than previously expected and we exited the first half with strong demand conditions and the benefits of the Return to Growth strategy coming through clearly.

"The effectiveness of our supply chain management and commercial agility give us confidence entering the second half, albeit we are mindful that the potential impact of material shortages could be more significant should the situation persist for an extended period. As such, we retain a cautious view of H2 at this stage."

As of 0855 BST, SIG shares were up 3.77% at 49.73p.