Interim Management Statement

RNS Number : 5939D

SIG PLC

18 May 2012

 



18^th May 2012                                                               

SIG plc

AGM and Interim Management Statement

SIG plc ("SIG" or "the Group") is a leading distributor of specialist building products in Europe, with strong positions in its core markets of insulation & energy management, interior fit out and roofing products.

Today the Group issues its Interim Management Statement for the period from 1 January 2012, ahead of its Annual General Meeting to be held today at 12 noon at Aston Hotel, Britannia Way, Catcliffe, Sheffield, S60 5BD.

Trading

Group sales per day in constant currency for the first 4 months of 2012 were just under 1% ahead of strong prior year comparatives, notwithstanding severe winter conditions across Mainland Europe in February and the wettest April on record in the UK. Both periods of adverse weather resulted in reduced activity in the outside building trades, particularly impacting sales in the Group's roofing businesses.

As a result of the weakening Euro, total Group sales in Sterling during the period fell by slightly less than 1%.

The overall gross margin has shown some improvement compared with the same period in 2011, although markets remain highly competitive.

In Mainland Europe, sales per day on a constant currency basis grew by c.3%, with France and Benelux performing particularly well, and Germany marginally ahead of last year.

With 2 extra trading days in the UK compared with prior year and 1 additional day in Ireland, total sales in UK & Ireland were broadly flat. On a sales per day basis, UK turnover was c.1% down, mainly due to a disappointing weather-related performance in the Exteriors division in April.

Sales in Ireland, which represents c.2% of the Group's total turnover, were significantly lower than prior year.

Organic growth initiatives

In line with its strategy of growing the business organically, subject to suitable opportunity and economic circumstances, SIG has opened 10 new branches so far this year, of which 3 were in the UK, 3 in Germany and 4 in France.

Financial position

There has been no material change to the financial position of the Group since the beginning of 2012.

Outlook

Based on trading levels and trends in the first 4 months, the Group maintains its view that market volumes will be slightly down overall in 2012, with demand patterns during the year likely to be uneven and not helped by the continuing wet weather in early May.

Although the macroeconomic environment and exchange rates remain uncertain, SIG has a solid platform on which to build and is continuing to target further market outperformance this year.

Enquiries

SIG plc

Chris Davies, Chief Executive                                      + 44 (0) 114 285 6300

Doug Robertson, Finance Director

Simon Bielecki, Head of Investor Relations                  + 44 (0) 114 285 6324

FTI Consulting

Richard Mountain/Nick Hasell                                       + 44 (0) 20 7269 7291

Cautionary Statement

This Interim Management Statement is prepared for and addressed only to the Company's shareholders as a whole and to no other person.  The Company, its directors, employees, agents or advisors do not accept or assume responsibility to any other person to whom this Interim Management Statement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.

Certain information included in this Interim Management Statement is forward looking and involves risks and uncertainties that could cause the actual results to differ materially from those expressed or implied by forward looking statements.  It is believed that the expectations set out in these forward looking statements are reasonable but they may be affected by a wide range of variables which could cause future outcomes to differ from those foreseen in forward looking statements, including but not limited to, changes in risks associated with the level of market demand, product availability and pricing, competitor risk, credit risk, credit insurance, restructuring of SIG and exchange rates.  All statements in this release are based upon information known to the Company as at the date of this Statement.  The Company undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise. 

 

END

 

 

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