Shares slide as Sig warns on profits

The UK group, which supplies specialist insulation and other building products across Europe, said group revenues in the six months to 30 June were flat on a like-for-like basis, at £1.4bn, with input price inflation offset by lower volumes.

Interim underlying operating profits are expected to come in around £33m. In the first half of 2022, Sig posted underlying operating profits of £42.5m.

Market conditions had been “challenging and variable” during the first half, Sig noted, with “notably” softer demand in May and June, particularly in Germany and France.

Looking to the current half, Sig said it expected “weak and uncertain” demand conditions to continue throughout the rest of the year.

It continued: “While trading in recent weeks leads us to be more cautious as to the timing of any broad-based improvement in demand conditions, the second half will benefit from ongoing productivity initiatives, as well as an expected profit on one specific property move.

“Consequently, the board continues to expect the group to deliver full-year underlying operating profit within the current range of market expectations, but towards the lower end of that range.”

Analysts currently expect full-year earnings before interest and tax to come in between £65.3m and £84m.

As at 0900 BST, shares in Sig were down 10% at 30.9p.