Trading Statement

SIG PLC
12 January 2006


                               TRADING STATEMENT

                                12 JANUARY 2006

SIG plc, the leading supplier of insulation, roofing, commercial interiors and
specialist construction products to the construction and building industries,
issues the following trading update for the year ended 31 December 2005 in
advance of the preliminary results, which will be announced on 8 March 2006.

Trading performance in the second half of 2005 has exceeded expectations, having
produced substantial growth in sales and operating profits compared with the
corresponding prior year period.

Better than expected like for like performance in each of the Group's geographic
trading areas, together with a strong contribution from businesses acquired in
2005 and in the latter part of 2004, produced very strong results in the second
half of 2005.

Total sales for the year exceeded £1,630m, an increase of approximately £232m
(16%) over 2004. On a like for like basis (i.e. excluding the impact of
acquisitions made in 2004 and 2005), sales growth was c.9%.

For the year ended 31 December 2005, underlying profit before tax and
amortisation of intangibles is expected to be not less than £94m. This
represents an increase of c.£23m (33%) over the £70.9m (adjusted for IFRS)
published for the year ended 31 December 2004, and is in excess of analysts'
consensus expectations.

This figure of £94m is before a goodwill impairment charge of £5.6m relating to
the Screenbase business, and a credit of c.£1.9m within other finance charges
relating to hedge ineffectiveness under IAS 39.

Operating profit, before the amortisation of intangibles and the impairment of
goodwill is expected to exceed £101m, an increase of c.£24m (31%) over the
£77.0m published for the year ended 31 December 2004.

UK and Republic of Ireland (c.66% of Group sales)

Sales in our largest geographic region increased by approximately 20% over 2004,
with like for like growth in excess of 9%.

Operating profits were strongly ahead of prior year, driven by substantial like
for like growth and the impact of recent acquisitions.

Sales and operating profits were increased in all businesses, against the
background of strong demand from non-residential construction markets. Demand
from housebuilding and other consumer-led sectors was more subdued, affecting
parts of the insulation and roofing markets.

Mainland Europe (c.30% of Group sales)

Total sales in Mainland Europe increased by approximately 9% in Sterling and 8%
in local currencies. Like for like sales growth in local currency was c.6%.

Against the background of mixed market conditions, like for like sales and
operating profits were increased in all countries in which the Group has trading
operations. Market conditions in Germany continued to be very challenging.
Demand in France was good, and showed some improvement in Benelux and Poland.

USA (c.4% of Group sales)

On an entirely like for like basis, sales were increased by c.18% in Sterling,
and c.16% in Dollars, and operating profits were substantially increased.

Increased sales resulting from improved underlying market conditions were
supplemented by the recent surge in demand for insulation materials essential to
the ongoing reconstruction of power and petrochem facilities following the
hurricane damage which occurred in September.

Acquisitions

During 2005 the Group completed 21 acquisitions, with combined annualised sales
of c.£145m.

17 of the acquisitions were made in the UK, comprising 2 in insulation, 9 in
roofing, 1 in commercial interiors and 5 in specialist construction products.

The remaining 4 businesses acquired are in Mainland Europe, comprising an
insulation business in France, an insulation and a commercial interiors business
in Benelux, and a commercial interiors business in Germany.

Total consideration for acquisitions in 2005 amounted to c.£110m, including
assumed debt.

Outlook

Overall conditions in the main markets and the countries in which the Group
operates are not currently expected to change significantly in 2006 compared
with 2005. In general, demand is expected to improve modestly, combined with low
price inflation.

The most important single driver of demand for the Group is non-residential
building and construction activity in the UK, which includes health, education,
commercial offices and other major projects. It is believed that the pipeline of
work in these markets will continue throughout 2006. Demand from housing and
consumer-led markets is more uncertain.

The high level of price increases implemented throughout 2004 had a beneficial
impact on average selling prices in 2005. It is anticipated that the impact of
price inflation in 2006 will be less marked.

The acquisitions made during 2005 are performing well and are expected to make a
meaningful addition to organic growth in 2006. The Group has sound finances and
continues to seek further opportunities to achieve growth.

The Board is confident that further progress will be made in 2006.

Analyst Conference Call

There will be an Analyst conference call at 9.00 am today. The dial in number is
0207 162 0025.

Enquiries:
David Williams, Chief Executive            SIG plc        0114 285 6300
Gareth Davies, Finance Director
Faeth Birch / Gordon Simpson               Finsbury       020 7251 3801





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