Trading Update

RNS Number : 8511I

SIG PLC

09 July 2013

 



9 July 2013

SIG plc

("SIG" or "the Group")

Trading Update

SIG plc ("SIG" or "the Group"), a leading distributor of specialist building products in Europe, with strong positions in its core markets of insulation & energy management, interior fit out and roofing, today issues a trading update for the six months ended 30 June 2013, in advance of its Half Year results announcement on 15 August 2013.

Trading

Group sales from continuing operations in the first half were down by c.1% in Sterling and c.3% in constant currency having been affected by the general weak market conditions and extended winter.

Trading improved as the weather reverted to seasonal norms.  Sales per day in constant currency for the Group were flat in May and June combined compared to a 4% decline for the first four months.

As anticipated, despite this improving trend the Group was unable to recover fully the weather-related shortfall in sales during the period. As a result, underlying profit before tax in H1 is likely to be in the range of £29-31m (H1 2012: £35.5m). However, SIG has taken prompt action to reduce cost to support full year profitability.

In Mainland Europe sales per day fell by c.4% in constant currency.  France and Germany were down by c.4% and c.5% respectively, with SIG's German roofing business particularly affected by difficult trading conditions.

Sales per day in the UK & Ireland excluding SIG Energy Management increased by c.2% in constant currency due to a good performance in the Group's distribution businesses.  Including SIG Energy Management, where, as anticipated, sales more than halved due to the ending of CERT and slow start-up of the Green Deal, the UK & Ireland was down c.1%.

Financial Position

Net debt at 30 June 2013 was c.£141m, c.£11m higher than a year ago due to acquisition expenditure and movements in foreign exchange rates.  Excluding these factors net debt would have been c.£11m lower than 30 June 2012.

Outlook

There are signs that market conditions are starting to improve in the UK, although construction activity in Mainland Europe remains weak. 

With the improving sales trend and the Group's firm action to reduce discretionary expenditure, SIG continues to expect to make further progress in 2013 consistent with its previous expectations, assuming normal weather conditions in the second half.

The Group is moving forward on its strategic initiatives to improve business performance and will provide further details at its Half Year results announcement in August.

Conference Call

There will be a conference call with management at 8.00am this morning to discuss the statement.  The dial-in number is 0203 139 4830, PIN 89231463#.

 

Enquiries

Stuart Mitchell, Chief Executive Doug Robertson, Finance Director Simon Bielecki, Head of Investor Relations	SIG plc		[phone] [phone]
Richard Mountain / Nick Hasell	FTI Consulting		[phone]

Cautionary Statement

This Trading Update 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 Update is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.

Certain information included in this trading update 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 2012.  All statements in this release are based upon information known to the Company at the date of this Trading Update.  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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