Trading Statement

SIG PLC
11 July 2006


                               TRADING STATEMENT
                                  11 JULY 2006


SIG plc, the leading supplier of insulation, roofing, commercial interiors and
specialist products to the construction and building industries, issues the
following trading update for the six months to 30 June 2006 in advance of the
interim results which will be announced on 13 September 2006.

The Group has produced a very solid performance in the first half of 2006, with
sales and operating profits substantially ahead of the corresponding period in
2005.

Like for like* growth in sales in each of the three geographic trading areas (UK
and Ireland, Mainland Europe and the USA) together with the impact of
acquisitions made in 2005 and 2006, produced total sales in excess of £885m.
This represents growth of not less than £116m (15%) over the sales figure of
£769m reported in the first half of 2005.

On a like for like basis, sales growth was c.7%. Exchange rate movements, though
favourable, have had a minimal impact on the results, having contributed less
than £5m to the total sales growth in the period.

Small movements in market pricing have, on balance, been mildly inflationary.

For the six months to 30 June 2006, underlying** profit before tax is expected
to be not less than £49.0m. This represents an increase of £8.5m (21%) over the
£40.5m for the corresponding period in 2005.

Underlying operating profit is expected to exceed £55m, an increase of £11.3m
(26%) over the £43.7m reported for the first six months of 2005.

UK and Ireland (c.67% of Group sales)

Sales increased by c.16% over the first half of 2005, with like for like growth
of c.5%.

Like for like sales growth has been achieved in all business streams, against
the background of markets which have shown low growth, with the exception of the
Roofing market, where demand is down on the first six months of 2005.

Operating profits on both a total and like for like basis are well ahead of the
corresponding period in 2005.

Mainland Europe (c.29% of Group sales)

Total sales in Mainland Europe increased by approximately 11% in Sterling, and
10% in local currencies. Total like for like sales growth was in excess of 8%,
and like for like growth was achieved in all countries of operation, i.e.
Germany, France, Poland and Benelux. Market demand grew modestly in each
country, with the exception of Germany, where demand remains subdued.

Operating profits were significantly ahead of the first six months of 2005.

USA (c.4% of Group sales)

Sales increased by c.23% in Sterling and 18% in US Dollars, entirely on a like
for like basis. Operating profits increased substantially in buoyant market
conditions.

Acquisitions

So far during 2006 the Group has completed 7 acquisitions. The purchase of an
additional business has been agreed and the transaction is expected to be
completed shortly, once formal approval has been given by the appropriate
competition authorities.

These 8 acquisitions have combined annual sales of c.£107m and are widely spread
across the Group's activities, and include one in Germany (Roofing), one in
France (Insulation) and six in the UK (two Insulation, one Specialist
Construction Products and three in Roofing).

One of the businesses acquired in the UK has sales of £19m, comprising Roofing,
Roofline and other related plastic building products. This business has been
loss making, and restructuring costs are anticipated over the remainder of 2006.

Total consideration for these 8 acquisitions, including assumed debt, amounts to
c.£45m.

Outlook

Overall, market conditions in the areas in which the Group has trading
activities have been broadly in line with management expectations. Major
non-residential project work in the UK has been marginally slower than expected,
against which conditions overseas have been more favourable.

Going forward, we do not anticipate any significant change in the overall
pattern of demand during the remainder of 2006.

The acquisitions made in 2005 impacted chiefly on the second half year, and for
this reason the year on year comparators for the six month period beginning 1
July are more demanding than those for the first six months.

Trading in the first six months has been encouraging and this, together with the
ongoing acquisition activity, gives the Board confidence that further progress
will be made.

* Like for like is defined as the business excluding the impact of acquisitions
made since 1 January 2005.

** Where reference is made to 'underlying,' this should be taken as meaning
before the amortisation of acquired intangibles and hedge ineffectiveness.

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   today      020 7251 3801
Gareth Davies, Finance Director                         thereafter 0114 285 6300
Faeth Birch / Gordon Simpson / Kirsty         Finsbury             020 7251 3801
Flockhart




                      This information is provided by RNS
            The company news service from the London Stock Exchange