Trading Statement

RNS Number : 0410D

SIG PLC

22 October 2015

 

22 October 2015

SIG plc

Trading Statement

SIG plc ("SIG" or "the Group"), a leading distributor of specialist building products in Europe, today issues the following Trading Statement.

Summary

For the nine months to end September 2015 Group like-for-like¹ ("LFL") sales were up 0.2%, with the UK & Ireland ahead by 2.0% and Mainland Europe down 1.7%, compared to the same period last year.

In Q3 the Group's LFL sales declined by 0.9% with the UK & Ireland up 0.4% and Mainland Europe down 2.3%, compared to the same period last year.

At its Half Year Results on 11 August 2015, SIG stated that it expected to make year-on-year progress assuming the improving sales trend in Mainland Europe continued.  This trend did not continue with market conditions deteriorating in the second half, particularly in France.  This was most notable in September, although October has remained difficult.  SIG has also been impacted by a lower than anticipated level of demand in the UK RMI market.

The challenging market conditions have also impacted SIG's gross margin, which is now anticipated to be broadly flat year-on-year, with procurement savings being offset by competitive pressures and adverse volume effects.

As a result, the Group now expects its full year underlying profit before tax to be within the range of £85m to £90m.

Strategic initiatives

The Group continues to be encouraged by the many opportunities to improve efficiency over the medium-term, particularly in supply chain and procurement.  SIG has concluded its supply chain review and in response to the market downturn is accelerating this programme, with savings of at least £20m expected to be delivered.   This is in addition to efficiencies being delivered from the Group's procurement initiative.  A detailed update will be provided at the Group's Capital Markets Day on 16 November 2015.

¹ sales per day in constant currency excluding acquisitions and disposals.

Conference call

There will be a conference call at 8.45 to discuss this statement.  The dial in details are 08448 719456 (UK) and [phone] (International), quoting the conference ID, which is 66635000.

Enquiries

SIG plc

Stuart Mitchell, Chief Executive                                             

Doug Robertson, Finance Director

Simon Bielecki, Head of Investor Relations                + 44 (0) 20 3204 5425

FTI Consulting

Richard Mountain/Nick Hasell                                     + 44 (0) 20 3727 1340

Cautionary Statement

This Trading Statement is prepared for and addressed only to the Company's shareholders as a whole and to no other person.  The Company, its directors, employees, agents or advisors do not accept or assume responsibility to any other person to whom this Trading Statement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.

Certain information included in this Trading Statement is forward looking and involves risks and uncertainties that could cause the actual results to differ materially from those expressed or implied by forward looking statements.  It is believed that the expectations set out in these forward looking statements are reasonable but they may be affected by a wide range of variables which could cause future outcomes to differ from those foreseen in forward looking statements, including but not limited to, changes in risks associated with the level of market demand, product availability and pricing, competitor risk, credit risk, credit insurance, restructuring of SIG and exchange rates.  More information about the risks and uncertainties that may affect the Group's performance is contained in the Annual Report to Shareholders for the year ended 31 December 2014.  All statements in this release are based upon information known to the Company at the date of this Trading Statement.  The Company undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise.

 

END

 

 

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