Weakness in European construction sector hits sales at SIG
SIG posted a slide in annual sales and profits on Thursday, weighed down by weakness in the European construction sector, but insisted it was well placed to weather the current cycle.
Updating on trading, the insulation and building products supplier said revenues in the year to December end were £2.61bn, with like-for-like sales down 4%. That compares to revenues of £2.76bn in 2023.
Underlying operating profits were also lower. SIG said it expected them come in around £25m, down considerably on last year’s £53.1m. However, 2024 profits were in line with expectations.
In addition, the firm said trading had improved as the year had progressed.
"While weak demand has continued to be a factor in them majority of the group’s markets, reflecting the ongoing softness in the European building and construction sector, like-for-like performance improved sequentially in the second half as expected, and in the fourth quarter compared to the third," it said.
Looking to the current year, SIG forecast continued softness in market conditions, "at least" through the first half.
But chief executive Gavin Slark added: "We are confident in our ability to manage through this current phase of the cycle, while also strengthening our operations.
"We remain ready to take advantage of the significant long-term opportunities for the group has markets recover."
As at 0930 GMT, shares in SIG - which will publish full-year results on 5 March - were up 1% at 15.34p.