Trading Statement

SIG PLC
11 January 2007


                               Trading Statement
                                11 January 2007


SIG plc, the leading supplier of insulation, roofing and commercial interiors
products, issues the following trading update for the year ended 31 December
2006, in advance of the preliminary results which will be announced on 14 March
2007.

The Group performed strongly throughout 2006, and again produced record sales
and profits. Total sales for the year exceeded £1,915m, an increase of
approximately £276m (17%) over 2005. These figures include sales of £65m from
the USA business, the disposal of which was announced in November 2006.

Excluding the USA from both 2006 and 2005, sales in 2006 were c.£1,850m, an
increase of approximately £279m (18%). Like for like sales growth was c.7%.

Underlying* profit before tax is expected to be not less than £111.5m (including
c.£4.0m contribution from the USA), and marginally ahead of analysts' consensus
expectations.

Excluding the USA from both 2006 and 2005, the 2006 underlying* profit before
tax is expected to be not less than £107.5m, an increase of £16.2m (c.18%) over
the equivalent figure for the year ended 31 December 2005.

In addition, a one-off profit of c.£2m is expected to be recorded in 2006,
arising from the successful disposal of the USA business in November 2006.

UK & Ireland (c.65% of Group sales)

Sales in our largest geographic region increased by approximately 14% over 2005,
with like for like growth of c.4%. Operating profits were significantly ahead of
prior year. Sales and operating profits increased in all businesses, i.e.
Insulation, Roofing, Commercial Interiors and Safety and Specialist Construction
Products.

Mainland Europe (c.32% of Group sales)

Total sales in Mainland Europe increased by approximately 27% in both Sterling
and local currencies, with like for like growth in excess of 13%.

The second half year saw a very significant increase in market demand in
Germany, which is believed to have been driven partly by some pull-forward of
orders to beat the increase in VAT on building materials which took effect on 1
January 2007.

Operating profits were increased substantially and sales and operating profits
were increased in all countries in which the Group has trading operations, i.e.
Germany and Austria, France, Benelux and Poland.

USA (c.3% of Group sales)

On 21 November 2006, the Group announced the sale of its business, for $51m in
cash.

Up to the date of disposal, the USA business contributed sales of £65m and
operating profits of c.£4m.

The 2006 Group results will benefit from a one-off profit of c.£2m arising from
this disposal.


Acquisitions

During 2006 the Group completed 23 acquisitions, a record number for the Group,
with combined annualised sales on an historical basis of c.£240m. The geographic
split of the acquired sales is c.£135m in Mainland Europe and c.£105m in UK and
Ireland.

Of the total 23, 19 were in the UK and Ireland, comprising 4 in insulation, 8 in
roofing and roofline, 2 in commercial interiors, and 5 in specialist
construction products.

In Mainland Europe, 4 businesses were acquired comprising 2 in France (both
insulation), 1 business operating in both Germany and Poland as a roofing
supplies specialist and 1 business in Poland with sales spread across
insulation, commercial interiors and specialist construction products.

Total consideration including assumed debt for acquisitions in 2006 amounted to
c.£108m.

Trading Sites

During the course of the year, the Group increased the number of trading sites
from 496 at 1 January 2006 to 613 at 31 December 2006, after having disposed of
the 21 sites in the USA.


Outlook

In the UK and Ireland, overall construction activity is expected to show modest
growth in 2007 over 2006. The market for thermal insulation for use in new
buildings is expected to begin to benefit from the recent change to the Building
Regulations (Part L) and this is expected to be moderately helpful in 2007. In
addition, as indicated in the Interim results in September 2006, the level of
demand for insulation upgrading in existing properties driven by grant aid has
fallen sharply in the latter part of 2006, and this decline is expected to
continue throughout 2007, until the new grant scheme (EEC3) becomes effective in
2008. This new scheme is expected to significantly increase grant-aided demand
from 2008.

In Mainland Europe, conditions are expected to remain positive, though it is too
early to say whether the surge in demand in Germany in recent months is a timing
factor rather than the beginning of an upturn in construction activity.

The Group enters 2007 in good shape and the Board is confident that further
progress will be made.

* Where reference is made to 'underlying' this is defined as being before the
  amortisation of acquired intangibles, goodwill impairment, hedge ineffectiveness
  and profit on disposal of the US business.


Analyst Conference Call

There will be an Analyst conference call at 9.00 am today. The dial in number is
020 7162 0125.

Enquiries:

David Williams, Chief Executive      SIG plc        0114 285 6300
Gareth Davies, Finance Director
Gordon Simpson/Kirsty Flockhart      Finsbury       020 7251 3801






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