SIG swings to loss amid 'challenging markets'

Building products distributor SIG was under the cosh on Tuesday after saying it swung to a full-year loss as sales were flat in "challenging markets".

In the year to the end of December 2023, the company swung to a statutory pre-tax loss of £31.9m from a profit of £27.5m. Revenues were little changed at £2.76bn versus £2.74bn, with like-for-like sales down 2%.

SIG said its UK Exteriors business delivered positive LFL sales growth, with good market momentum following an ongoing programme of revitalising branches, sales team skills, and training.

Both French businesses executed "well in a tough market", it said, while Germany "benefitted from strengthening execution to maintain operating margin gains of recent years, despite weaker volumes and difficult local market conditions".

Chief executive Gavin Slark said: "The group delivered robust results in 2023, despite ongoing market weakness, demonstrating the benefits and resilience of our diversified geographic and end-market profile.

"Alongside this, the group has also been effective in executing restructuring and productivity initiatives across the business. These are a key element of our strategic plan to drive operating margin growth over the medium-term to our target of 5%.

"By increasing focus on driving operational efficiencies, stronger commercial execution and employee engagement, the board is confident that the Group's leading market positions will continue to strengthen further when conditions improve across our markets. We remain financially and commercially well placed and are taking proactive steps to drive meaningful shareholder value in the medium and long-term."

At 0935 GMT, the shares were down 6.2% at 28.20p.