SIG's new CEO Oldersma to unveil 'step change' growth plan

Building products supplier SIG kept sales growth steady in the third quarter and set out plans to "deliver a step change" in performance in future years.

Ahead of a 'strategy day' on Tuesday afternoon, new chief executive Meinie Oldersma said he will target a return on sales of roughly 5% and a return on capital employed of around 15% over the medium term.

"The key strategic levers that will drive this step change in performance are a refocus by the group on customer service and customer value, whilst delivering operational efficiency through reductions in both the operational cost base and the working capital of the group," the company said in a statement ahead of the event.

"Execution of these levers will be underpinned by strong capital discipline, including disposals of some peripheral businesses, and selective investment in key strategic enablers around data, IT and capability."

Group like-for-like revenues in the three months to end-October rose 4.6%, up from the 2.8% in the first half.

Sales from continuing operations increased by 6.7% in the period, with currency contributing 2.5% to growth, offset by minimal effects from fewer working days and acquisitions.

In the UK & Ireland, LFL revenues were up 2.5% in the quarter, with the revenues of the Insulation & Interiors business continuing to benefit from price increases.

SIG Exteriors sales were down 2.6% in the period, with the only other negative being sales falling 5% in the BeNeLux region.

Overall, mainland Europe saw sales up 6.6%, leading to a 5.2% increase for the year to date.