REG - SIG PLC - H1 Trading Update

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RNS Number : 0694Q  SIG PLC  08 July 2025

 

8 July
2025
 

SIG plc: H1 Trading Update

 

SIG plc ("SIG", or "the Group"), a leading supplier of specialist insulation
and building products across Europe, today issues a trading update for the six
months to 30 June 2025 ("H1" or "the period"), in advance of the release of
its H1 results on 5 August 2025.

 

Key points

·   Group revenue of £1,306m, representing 1% like-for-like(1) ("LFL")
revenue growth versus prior year, reflecting continued market outperformance

·   Underlying operating profit(2) for H1 expected to be c£15m (H1 2024:
£12m), with ongoing impact of productivity initiatives partially offsetting
continued softness in market demand

·   Group continues to execute on its strategic initiatives to drive cost
savings and productivity, and to improve cash generation

·   Robust cash performance in the period, with initiatives offsetting much
of the normal seasonal increase in working capital

·   Group's 2025 full year outlook unchanged

 

The Group has also issued an update on CEO succession this morning, and will
welcome Pim Vervaat as CEO and Chair designate on 1 October 2025.  Further
details are set out in that announcement.

 

Summary

Group LFL sales were up 1% year-on-year in the period, with LFL volumes up
2%.  Continued pricing pressure in the market more than offset modest
inflation on input costs, leading to a net 1% reduction in pricing.  Reported
revenues of £1,306m were 1% down on prior year, reflecting an impact of 1% in
aggregate from working days and exchange rates, as well as a 1% net impact
from branch closures and openings.

 

 1 January to 30 June 2025             LFL sales growth vs 2024  £'m

 UK Interiors                          8%                        263
 UK Roofing                            5%                        191
 UK Specialist Markets                 (1)%                      118
 UK                                    5%                        572

 France Interiors                      (7)%                      97
 France Roofing                        (4)%                      199
 Germany                               0%                        217
 Poland                                2%                        124
 Benelux                               3%                        46
 Ireland                               3%                        51
 EU                                    (1)%                      734

 Group                                 1%                        1,306

 

Demand in all markets remains well below historical levels, and trends in the
second quarter were similar to those experienced in Q1, with European
construction at a low point in the cycle.

 

Ongoing commercial and operational initiatives are enabling the business to
outperform these local markets.  In particular, the UK Interiors business has
delivered significantly improved top and bottom-line performance as a result
of actions taken by the management team over the last nine months, and the UK
Roofing business continues to perform strongly.  The German and French
businesses are continuing to perform robustly relative to particularly
challenging markets.  The Benelux business has delivered improved results as
the management team execute their turnaround plan.

 

Other actions to manage near-term margin pressure and to strengthen our
operating platform and margin for the long term are ongoing, alongside
targeted investment to support our strategic growth opportunities.  The
benefits from productivity and cost initiatives will continue to contribute
incrementally as the year progresses.

 

The Board expects to report net debt at 30 June of £525m, including leases,
(31 December 2024: £497m) and liquidity of £171m (31 December 2024:
£177m).  The latter consists of £81m of gross cash balances and a £90m RCF
facility that has remained undrawn.  The cash balance reflects a free cash
outflow of around £10m in the period, with meaningful progress on working
capital initiatives offsetting much of the normal seasonal increase in working
capital.  Sustained medium and long-term improvement in cash flow generation
remains the Group's primary financial objective.

 

Outlook

The Board continues to expect the Group to deliver full year underlying
operating profit in line with market expectations.(3)  Having seen no notable
pick-up in demand during the period, the Board remains cautious as to the
prospect of meaningful market improvement during the second half.

 

As noted previously, the operational gearing in our business model applies
equally strongly in conditions of rising demand, and, accordingly, the Board
believes the Group remains very well positioned to benefit from the market
recovery when it occurs.

 

H1 Results date

We will publish our H1 2025 results on 5 August 2025 and hold a conference
call for analysts and investors on that date.

 

1.      Like-for-like is defined as sales per working day in constant
currency, excluding completed acquisitions and disposals, and adjusted to
exclude the net impact of branch closures and openings.

2.      Underlying represents the results before Other items. Other items
relate to the amortisation of acquired intangibles, impairment charges,
profits and losses on agreed sale or closure of non-core businesses and
associated impairment charges, net operating profits and losses attributable
to businesses identified as non-core, net restructuring costs, and other
non-underlying profits or losses.

3.      Company collated analyst expectations is for Full Year 2025
underlying operating profit (EBIT) of £31.6m, within a range of £30m to
£35m, as at 7 July 2025.

 

Contacts

 SIG plc                                       +44 (0) 114 285 6300 / ir@sigplc.com
 Ian Ashton        Chief Financial Officer
 Sarah Ogilvie     Head of Investor Relations

 FTI Consulting                                +44 (0) 20 3727 1340
 Richard Mountain

LEI: 213800VDC1BKJEZ8PV53

 

Cautionary Statement

This document contains certain forward-looking statements concerning the
Group's business, financial condition, results of operations and certain
Group's plans, objectives, assumptions, projections, expectations or beliefs
with respect to these items. Forward-looking statements are sometimes, but not
always, identified by their use of a date in the future or such words as
'anticipates', 'aims', 'due', 'could', 'may', 'will', 'would', 'should',
'expects', 'believes', 'intends', 'plans', 'potential', 'targets', 'goal',
'forecasts' or 'estimates' or similar expressions or negatives thereof.

 

Forward-looking statements involve known and unknown risks, uncertainties and
other factors, which may cause the Group's actual financial condition,
performance and results to differ materially from the plans, goals, objectives
and expectations set out in the forward-looking statements included in this
document.

 

All written or verbal forward-looking statements, made in this document or
made subsequently, which are attributable to the Group or any persons acting
on its behalf are expressly qualified in their entirety by the factors
referred to above. Accordingly, readers are cautioned not to place undue
reliance on forward-looking statements. No assurance can be given that the
forward-looking statements in this document will be realised; actual events or
results may differ materially as a result of risks and uncertainties facing
the Group. Subject to compliance with applicable law and regulation, the Group
does not intend to update the forward-looking statements in this document to
reflect events or circumstances after the date of this document and does not
undertake any obligation to do so.

 

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