SIG lifts outlook on narrowed interim loss; hails new growth strategy

(Alliance News) - SIG PLC on Tuesday said it expects to surpass its full-year guidance, while ...

Alliance News 21 September, 2021 | 9:40AM
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(Alliance News) - SIG PLC on Tuesday said it expects to surpass its full-year guidance, while also praising its "Return to Growth" strategy for delivering a narrowed interim loss.

Sheffield, England-based SIG supplies insulation, roofing, commercial interiors and specialist construction products.

In the six months ended June 30, the company trimmed its pretax loss to GBP1.6 million, from a GBP125.4 million loss the year prior. Revenue rose 32% year-on-year to GBP1.11 billion from GBP840.1 million.

Chief Executive Steve Francis said: "I'm delighted with the progress of our Return to Growth strategy...The strong revenue growth across our broad product offering, together with disciplined margin management, has been key to delivering an earlier and stronger profit than previously anticipated."

The company said its 'Return to Growth' strategy involves reconnecting with customers at a local level, reinforcing its supplier partnerships and investing in new branches.

Despite the reported successes of its growth strategy to date, the company decided against distributing dividends for the first half, in keeping with the previous year. By comparison, the company paid an interim dividend of 1.25p per share in 2019.

SIG maintained its plans to return to a progressive dividend policy in the medium term.

"Trading in July and August has continued to be solid and we expect continued profit improvement through [the second half], despite the ongoing impact of material shortages and cost price inflation," Francis added.

Provided material and driver shortages do not worsen, the company said it expects to deliver full-year underlying operating profit ahead of prior expectations.

Shares in SIG were trading up 0.5% at 50.10 pence each in London on Tuesday morning.

By Scarlett Butler; scarlettbutler@alliancenews.com

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Securities Mentioned in Article

Security Name Price Change (%) Morningstar
Rating
SIG PLC 27.60 GBX 1.28 -

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