Interim Results

SIG PLC
3 September 2001

                           P R E S S R E L E A S E

                                                              3 September 2001

              INTERIM RESULTS FOR THE SIX MONTHS TO 30 JUNE 2001

SIG plc, Europe's largest specialist distributor of Insulation and Related
Products, Ceilings and Partitioning and Roofing, reports record interim
results with sales and operating profits ahead in all three regions of the UK,
mainland Europe and the USA.
*   Sales in the first half up 11% to £498m (2000: £447m).
*   Operating profit before amortisation of goodwill up 13% to £26.2m (2000: £
    23.3m).
*   Profit before tax has increased 7% to £23m (2000: £21.6m).
*   Earnings per share increased 7% to 13.3p (2000: 12.4p).
*   Interim dividend up 9% to 3.7p (2000: 3.4p).
*   David Williams to take over as Chief Executive from 1 January 2002 when
    Bill Forrester, the present Chief Executive, retires.
*   Today SIG also announces the acquisition of Capco Holdings Ltd, a
    distributor of Insulation and Related Products, Ceilings and Partitioning
    and Roofing, with 19 branches in the UK and Eire. Total consideration is £
    26.7m.



Barrie Cottingham, Chairman of SIG, commenting on the results, said:

'Sales have increased in every country and we believe that we have further
strengthened our market position in each of our three core sectors of
Insulation and Related Products, Ceilings and Partitioning and Roofing.'

'Whilst we could not expect to avoid the effect of any further economic slow
down, we believe that the broad spread of our activities and our proven
ability to continue to gain market share justifies our confidence in the
future. We expect to make further progress in the second half year.'



Enquiries:
Bill Forrester, Chief Executive         SIG plc             today 020 7251 3801
David Williams, Deputy Chief Executive                 thereafter 0114 285 6300
Frank Prust, Finance Director

Faeth Finnemore/Gordon Simpson          Finsbury                  020 7251 3801

Further information is available from SIG's website www.sigplc.co.uk. A
webcast of the results presentation will be available from Tuesday 4 September
2001.

Print resolution images are available for download from
www.piranhaphotography.com/SIG





                             CHAIRMAN'S STATEMENT

                             INTERIM RESULTS 2001



In the first half of 2001 we have increased sales and profits in all three
regions in which we operate; the UK, mainland Europe and the USA. This
improvement is chiefly organic, with only a modest contribution coming from
recent acquisitions.

Overall our operating margin has been maintained, with increases in the UK and
USA. In Europe the margin was reduced very slightly due to difficult market
conditions in Poland and Germany.

Sales have increased in every country and we believe that we have further
strengthened our market position in each of our three core sectors of
Insulation and Related Products, Ceilings and Partitioning and Roofing.

These results underline the benefits of our broad geographic and market sector
spread, and the Group's ability to perform consistently well. The downturn in
Germany and Poland has been countered by particularly strong performances in
UK Roofing, and in Ceilings and Partitioning in the UK, France and the
Netherlands.

Results and Dividends
*   Sales in the first half have increased by 11% to £498m (2000: £447m)
*   Operating Profits before amortisation of goodwill for the period are 13%
    higher at £26.2m (2000: £23.3m)
*   Profit before Tax is 7% higher at £23.0m (2000: £21.6m)
*   Earnings per share for the half year are 7.3% higher at 13.3p compared with
    12.4p in 2000
*   The Balance Sheet remains sound with gearing at 53% compared with 51% at
    December 2000 and interest cover is strong at 12 times. Since 30 June 2001,
    we have increased our facilities and our debt profile has been improved by
    the raising of £85m of seven to ten year fixed rate finance via a US
    Private Placement.

An interim dividend of 3.7p (2000: 3.4p) has been declared, an increase of 9%,
reflecting the Group's strong performance and the Board's confidence in the
future. The dividend is payable on 16 November 2001 to shareholders on the
register at 24 October 2001.

Review of Operations

UK

SALES grew strongly, up by a total of £30.2m to £302m, an increase of 11.1%
over the first half of 2000. This excellent sales performance, which was
largely organic, resulted in an improvement in OPERATING PROFITS of 13%.
Market demand grew modestly with price inflation at an average of 2% across
the range.

In INSULATION AND RELATED PRODUCTS, sales and operating profits increased in a
market where prices strengthened slightly, making a welcome turn-round from
the deflation of previous years. We also saw some benefit from increased
Government funding for insulation upgrading programmes in existing housing.

In the ROOFING DIVISION sales and profits grew substantially, with strong
organic growth supplemented by small bolt-on acquisitions. This division is
especially focused on repairs, maintenance and improvements (RM&I) work and we
gained share in a market where demand and prices slightly improved. The
programme of improvements to the branch network continued during the period
and we invested further in sales resources and improved management reporting
systems.

In CEILINGS & PARTITIONING we continued to make excellent progress with sales
and profits well ahead, and operating margins maintained. The market for
interior fit-out of new and existing commercial buildings was reasonably
strong and we have introduced new ranges of office partitioning products to
further strengthen our position, especially in the upper quality, higher
specification sector.

In the small but growing SAFETY PRODUCTS business, sales increased and we made
a substantial investment in the materials handling and logistics functions to
improve customer service and facilitate future growth.

EUROPE

SALES across our mainland European operations rose by 11% over prior year and
were increased in each country in both local currency and in sterling.
OPERATING PROFITS were up 2%, though overall the operating margin declined
slightly, influenced by results in Germany and Poland.

In FRANCE, our core INDUSTRIAL distribution business performed strongly,
increasing sales, margins and profits in a market where demand from specialist
industrial products improved over prior year. The CEILINGS AND PARTITIONING
division in France traded well, increasing sales and profits in market
conditions which remained positive, and we benefited from the continued
development of branches opened in 2000.

In GERMANY, where we are a major supplier to both the INSULATION and CEILINGS
AND PARTITIONING markets, we increased sales overall, but the operating profit
declined due to cost increases and a small reduction in the gross margin. Our
performance was in line with our expectations for the period. Demand from the
construction and building related markets was down compared with the first
half 2000, especially in new construction. Sales into the repairs and
maintenance market held up better and our specialist industrial insulation
operations have performed strongly. New opportunities in specific areas were
identified and two new, small branches were opened. Both traded above
expectations in the period.

In POLAND, the sharp decline in the new build market, especially in Warsaw
where we have our largest operations, caused a setback in the progress we had
made in 2000 and a small operating loss was incurred. Overall, sales were
slightly up and actions have already been taken on costs in the light of the
very disappointing trading conditions.

In HOLLAND, where we have a significant and growing share of the CEILINGS AND
PARTITIONING market, sales, margins and profits increased. We strengthened our
market position in positive trading conditions, benefiting from the addition
of two new branches.

USA

The industrial INSULATION operations increased sales in the period, despite
demand from the core petro-chemical plants in Texas, Louisiana and Alabama
being below expectations. The continued development of value added products
sales, and an improvement in the operating margin, created a substantial
increase in operating profits.

Acquisitions

We continued to strengthen our UK operations by the addition of three small
bolt-on acquisitions for a total consideration of £10.2m. Each of these was
carefully targeted to strengthen our coverage in specific areas. They
contributed sales of just over £4m in the first half of 2001.

Today we announced the acquisition of Capco Holdings Ltd (Capco) for a total
consideration of £26.7m. Capco is a specialist distributor with 19 branches in
the UK and Eire, with activities spanning our three core business sectors of
Insulation and Related Products, Ceilings and Partitioning and Roofing. This
acquisition is an excellent strategic fit with our existing operations and
offers sound potential for future earnings enhancement. It is a continuation
of our proven strategy of strengthening core activities and extending the
geographic spread of our businesses.

Euro

All our businesses in Eire and Mainland Europe are well advanced in preparing
systems to enable trading to be conducted in the Euro from the beginning of
2002.

Management

In June, we announced that David Williams will become Chief Executive at the
end of 2001 when Bill Forrester, the present Chief Executive, retires. We have
taken the opportunity to strengthen the executive membership of the Group
Board by appointing John Chivers, Managing Director of our Roofing Division.

We also announced that two new non-executive Directors, Nick Paul and Peter
Blackburn, have joined the Board. They replace Tim Kitson and Jim Potter, both
of whom retire in September 2001. I thank both Tim and Jim for their excellent
contribution to the Group during a period of rapid growth. I also take this
opportunity to welcome the new Directors to the Board.

Prospects

Conditions overall in our specific markets are not expected to change
significantly in the second half of 2001 compared with the first half.

Some further weakening of the construction sector in Germany and Poland is
anticipated. In all other areas of Europe, Eire, the UK and the USA we expect
demand and pricing to remain broadly stable. Whilst we could not expect to
avoid the effect of any further economic slow down, we believe that the broad
spread of our activities and our proven ability to continue to gain market
share justify our confidence in the future, and we expect to make further
progress in the second half year.



Summary Consolidated Profit and Loss Account

for the six months ended 30 June 2001
                                        Unaudited    Unaudited      Audited
                                        Six months   Six months       Year
                                          ended        ended         ended
                                         30 June      30 June        31 Dec
                             Note   2001     2001    2000    2000  2000     2000
                                   £'000    £'000   £'000   £'000 £'000    £'000

Turnover                        3         497,640         447,344        931,927
...........................                  ...            ...              ...


Operating profit                3          25,124          22,675         50,874
Net interest payable                        2,099           1,122          2,703
...........................                  ...            ...             ...

Profit before taxation and
amortisation of goodwill            24,136         22,141          49,596
Amortisation of goodwill             1,111            588           1,425
...........................         ......         ......       .........

Profit on ordinary
activities
before taxation                            23,025          21,553         48,171
Tax on profit on ordinary                   7,276           6,803         15,222
activities
...........................                  ...            ...             ...

Profit on ordinary
activities
after taxation                             15,749          14,750         32,949
Minority interests (all                        78              38            207
equity)
Equity dividends                            4,387           3,996         12,036
...........................                  ...            ...             ...

Retained profit for the                    11,284          10,716         20,706
year
...........................                  ...            ...             ...

Earnings per share
Basic earnings per share        4           13.3p          12.4p           27.7p
Fully diluted earnings per      4           13.1p          12.3p           27.4p
share
...........................                   ...            ...             ...

Earnings per share before
goodwill amortisation
Basic earnings per share        4           14.2p          12.9p           28.9p
Fully diluted earnings per      4           14.0p          12.8p           28.6p
share
...........................                   ...            ...             ...




Consolidated Statement of

Total Recognised Gains and Losses

for the six months ended 30 June 2001
                                              Unaudited    Unaudited   Audited
                                             Six months   Six months      Year
                                                  ended        ended     ended
                                                30 June      30 June    31 Dec
                                                   2001         2000      2000
                                                  £'000        £'000     £'000
Profit on ordinary activities after
taxation and minority interests                  15,671       14,712     32,742
Currency translation differences on
foreign currency net investments                   (371)        (486)        50
............................................  .......... ............ .........
Total recognised gains and losses for
the period                                       15,300       14,226     32,792
............................................  .......... ............ .........



Summary Consolidated Balance Sheet

as at 30 June 2001
                                             Unaudited   Unaudited     Audited
                                               30 June     30 June      31 Dec
                                                  2001        2000        2000
                                                 £'000       £'000       £'000
Fixed assets
Intangible assets                               42,897      24,288      36,116
Tangible assets                                 62,316      56,725      59,078
.......................................    ............   .........   .........

                                               105,213      81,013      95,194
.......................................    ............   .........   .........

Current assets
Stocks                                          77,208      69,710      70,204
Debtors                                        201,647     188,870     172,957
Cash at bank                                     5,942       5,605      10,509
.......................................    ............   .........   .........

                                               284,797     264,185     253,670

Creditors due within one year                 (201,863)   (184,094)   (176,066)
.......................................    ............   .........   .........

Net current assets                              82,934      80,091      77,604
.......................................      ..........   .........   .........

Total assets less current liabilities          188,147     161,104     172,798

Creditors due after one year                   (30,285)    (24,737)    (25,299)
Provision for liabilities and charges           (3,388)     (3,632)     (4,051)
.......................................    ............   .........   .........

Net assets                                     154,474     132,735     143,448
.......................................    ............   .........   .........


Capital and reserves (all equity)              154,474     132,735     143,448
.......................................    ............   .........   .........




Summary Consolidated Cash Flow Statement

for the six months ended 30 June 2001
                                           Unaudited    Unaudited     Audited
                                             30 June      30 June      31 Dec
                                                2001         2000        2000
                                Note           £'000        £'000       £'000

Net cash inflow from operating
activities                       5            25,531       22,481      52,837
.......................................  ............ ............  ..........

Returns on investments and
servicing of finance                          (2,099)      (1,122)     (2,703)
.......................................  ............ ............ ...........

Taxation                                      (6,202)      (3,562)    (10,707)
.......................................  ............ ............ ...........

Capital expenditure                          (10,304)      (8,819)    (17,902)
.......................................  ............ ............ ...........

Acquisitions                                 (10,178)     (13,896)    (29,472)
.......................................  ............ ............ ...........

Equity dividends paid                         (8,040)      (7,306)    (11,325)
.......................................  ............ ............ ...........

Financing                                      6,081        1,026       1,123
.......................................  ............ ............ ...........

Decrease in cash in the period   6            (5,211)     (11,198)    (18,149)
.......................................  ............ ............ ...........






Notes to the Unaudited Interim Results
1.    Basis of Preparation of Interim Financial Information
      The accounts have been prepared in accordance with the accounting
      policies included in the Annual Report for the year ended 31 December
      2000, which have been applied consistently throughout the current and
      preceding periods.

2.    Publication of Non Statutory Accounts
      The financial information included in this interim statement does not
      constitute statutory accounts within the meaning of Section 240 of the
      Companies Act 1985. The interim results to 30 June 2001 and 2000 are
      unaudited. The financial information for the full preceding year is based
      on the statutory accounts for the financial year ended 31 December 2000.
      Those accounts, upon which the auditors issued an unqualified opinion,
      have been delivered to the Registrar of Companies.

3.    Segmental Information
                                   Unaudited        Unaudited          Audited
                                  Six months       Six months             Year
                                       ended            ended            ended
                                     30 June          30 June           31 Dec
      Geographical analysis             2001             2000             2000
                                       £'000            £'000            £'000
      Turnover
      - UK                           301,987          271,790          559,889
      - Europe                       156,769          141,226          300,959
      - Rest of world                 38,884           34,328           71,079
                                 ............     ............     ............
      Total operations               497,640          447,344          931,927
                                 ............     ............     ............
      Operating profit
      - UK                            21,897           19,410           41,000
      - Europe                         4,304            4,221           12,212
      - Rest of world                  1,460              924            2,069
      - Parent Company                (1,426)          (1,292)          (2,982)
      - Amortisation of goodwill      (1,111)            (588)          (1,425)
                                 ............     ............        .........
      Total operations                25,124           22,675           50,874
                                 ............     ............        .........
      Turnover and operating profit by destination is not materially different
      from these amounts. Turnover and operating profit from acquisitions
      during the period have not been reported separately due to their
      immateriality to the Group results.

4.    Earnings per Share
      The calculations of earnings per share are based on the following profits
      and numbers of shares:
                                                     Basic and diluted before
                             Basic and diluted        goodwill amortisation
                             Unaudited      Audited     Unaudited      Audited
                            Six months        Year     Six months        Year
                                              ended                      ended
                           ended 30 June     31 Dec   ended 30 June     31 Dec
                             2001     2000     2000     2001     2000     2000
                            £'000    £'000    £'000    £'000    £'000    £'000

      Profit after tax    15,749   14,750   32,949   15,749   14,750   32,949
      Minority interests     (78)     (38)    (207)     (78)     (38)    (207)
      Goodwill                 -        -        -    1,111      588    1,425
      amortisation
                           ......   ......   ......   ......   ......   ......

                          15,671   14,712   32,742   16,782   15,300   34,167
                           ......   ......   ......   ......   ......   ......

      Weighted average number of shares:
                                                Unaudited              Audited
                                               Six months           Year ended
                                              ended 30 June             31 Dec
                                            2001           2000           2000
                                          Number         Number         Number

      For basic earnings per share   118,257,428    118,218,818    118,224,134
      Exercise of share options        1,522,544      1,426,025      1,289,382
                                    ............   ............   ............

      For diluted earnings per       119,779,972    119,644,843    119,513,516
      share
                                    ............   ............   ............

5.  Reconciliation of Operating Profit to Net Cash Inflow from Operating
    Activities
                                              Unaudited   Unaudited     Audited
                                             Six months  Six months        Year
                                                  ended       ended       ended
                                                30 June     30 June      31 Dec
                                                   2001        2000        2000
                                                  £'000       £'000       £'000

      Operating profit                          25,124      22,675      50,874
      Depreciation and amortisation              7,995       6,229      13,529
      Profit on sale of tangible fixed              (6)        (45)       (329)
      assets
      Changes in working capital                (7,582)     (6,378)    (11,237)
                                              .........   .........   .........

      Net cash inflow from operating            25,531      22,481      52,837
      activities
                                              .........   .........   .........

6.  Reconciliation of Net Cash Flow to Movement in Net Debt

                                                       Unaudited        Audited
                                                      Six months     Year ended
                                                     ended 30 June       31 Dec
                                                  2001        2000         2000
                                                 £'000       £'000        £'000

      Decrease in cash in the period           (5,211)    (11,198)     (18,149)
      Cash inflow from increase in debt        (6,056)       (981)      (1,063)
                                          ............   ......... ............

      Changes in net debt resulting from
      cash flows                              (11,267)    (12,179)     (19,212)
      Acquisitions                                (60)       (879)        (913)
      Exchange differences                      1,277      (1,046)        (946)
                                          ............   ......... ............

      Movement in net debt in the period      (10,050)    (14,104)     (21,071)
      Net debt at start of period             (72,397)    (51,326)     (51,326)
                                          ............   ......... ............

      Net debt at end of period               (82,447)    (65,430)     (72,397)
                                          ............   ......... ............