SIG PLC
06 July 2007
TRADING STATEMENT
6 JULY 2007
SIG plc, the leading supplier of insulation, roofing, commercial interiors and
specialist construction products issues the following trading update for the six
months to 30 June 2007, in advance of the interim results which will be
announced on 13 September 2007.
Trading performance has been very strong in the first half of 2007, with sales
and operating profits substantially ahead of the first half of 2006.
Total sales exceeded £1 billion for the first time in a six month period, and
are expected to be more than £1070m (2006: £850m), representing growth in excess
of £220m (25.9%) on a continuing basis*. Like for like sales** growth was in
excess of 10%.
Underlying*** profit before tax for the six months to 30 June 2007 is expected
to be not less than £61.0m, an increase on a continuing basis of £13.6m (28.7%),
on the £47.4m reported in the first half of 2006.
Underlying operating profit is expected to exceed £69.0m an increase of £15.4m,
28.7% on a continuing basis on the £53.6m reported in the first half of 2006.
UK and Ireland (c.66% of Group sales)
Total sales increased by c.18% over the first half of 2006, and like for like
sales growth was in excess of 9%.
All business streams have performed well, producing solid like for like sales
growth over the corresponding prior year period.
Underlying operating profits are substantially ahead of the £48.0m reported in
the first six months of 2006.
Mainland Europe (c.34% of Group sales)
Total sales increased by c.50% in Sterling, and by c.53% in local currency. Like
for like sales growth in local currency was in excess of 20%. All countries in
which the Group has trading sites achieved substantial like for like growth.
Underlying operating profits were significantly ahead of the £8.5m reported in
the first six months of 2006.
The very strong performance in Mainland Europe reflects both a general
strengthening of market demand for the Group's products in each country,
especially in Germany and Poland, and also the strong progress made by
businesses acquired by SIG in 2006, most of which did not impact on the Group
until the second half of 2006.
Acquisitions
The Group has completed 14 acquisitions, together adding 117 trading sites and
annualised sales of c.£309m. Total consideration, including assumed debt and
performance-related contingent consideration amounts to £261m.
Of the £309m annualised sales, approximately £274m is in Mainland Europe, and
£35m in the UK and Ireland.
The acquisitions are broadly spread across the Group's existing business
streams, with the recent acquisition of Lariviere, the leading specialist
roofing materials supplier in France (annual sales of c.£229m), creating a bias
in the mix of acquired sales so far this year towards the roofing sector.
Trading Sites
The Group presently has 735 trading sites, a significant increase on the 618 as
at 31 December 2006.
Outlook
During the first six months of 2007, the Group experienced reasonably good
overall levels of construction activity in the UK and Ireland, and strong
increases in demand in Mainland Europe.
Going forward, we do not anticipate any significant change in these conditions,
other than in Ireland, where building activity is cooling.
The second half of 2006 benefited from a sharp uplift in demand in Germany, and
from the positive impact of acquisitions made in that period. In the light of
this the year on year comparators for the second half of the year will be more
demanding than in the first half.
The ongoing programme of investing in growth for the future, together with the
performance in the first six months of 2007, give the Board confidence that
further progress will be made.
Definitions
* references to 'continuing basis' refer to comparisons with 2006 excluding the
contribution from the USA business, which was sold in November 2006.
** 'like for like' is defined as the business excluding the impact of
acquisitions made since 1 January 2006.
*** 'underlying' is before the amortisation of acquired intangibles and hedge
ineffectiveness.
Enquiries:
David Williams, Chief Executive SIG plc 0114 285 6300
Gareth Davies, Finance Director
Gordon Simpson/Clare Strange Finsbury 020 7251 3801
This information is provided by RNS
The company news service from the London Stock Exchange
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