REG - SIG PLC - Q3 Trading Update

SIGAnnouncement

02/10/2024 07:00

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RNS Number : 5513G  SIG PLC  02 October 2024

2 October 2024

SIG plc: Q3 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
three months to 30 September 2024 ("Q3" or "the period").

 

Key points

·   Group like for like(1) ("LFL") revenue performance saw, as expected, a
sequential improvement in the period, being down 4% versus prior year compared
to the 7% decline reported in H1.

·   The Group continues to perform well relative to its markets and is also
continuing to deliver on the cost reduction and efficiency objectives reported
at the half year results in August.  These initiatives are helping support
near-term performance, but will also help drive higher profitability as
markets recover.

·   Underlying operating profit guidance for the full year remains
unchanged and in line with market expectations(2).

·   Cash performance for the period was also in line with expectations, and
the RCF remains undrawn.

 

Trading Summary

Whilst weak demand has continued to be a factor in the majority of the Group's
markets, reflecting the ongoing softness in the European building and
construction sector, LFL performance improved sequentially in Q3 as expected.
 This was despite the effect of strategic branch closures, which form part of
the restructuring programmes in the UK, Germany and France, and which impacted
the Group LFL performance by c1% in the period.  Deflationary headwinds
moderated further in the period, to c2%, and there has been some encouraging
stabilisation in overall volumes, which are down only 1% excluding the branch
closure impact.

 

 

 1 July to 30 September 2024  LFL growth  £m

 Revenue

 UK Interiors                 (12)%       129
 UK Roofing                   4%          104
 UK Specialist Markets        (2)%        61
 UK                           (5)%        294

 France Interiors             (8)%        45
 France Roofing               (7)%        91
 Germany                      (2)%        114
 Poland                       (9)%        64
 Benelux                      (2)%        25
 Ireland                      20%         29
 EU                           (4)%        368

 Group                        (4)%        662

 

 

Nearly all of the Group's businesses achieved an improved LFL result in Q3
compared to H1, with the UK businesses, France Roofing, Ireland and Benelux
showing the biggest improvements. Poland reported a weaker Q3 as the
non-residential market slowed more than expected over the summer.

 

The Group continues to make good progress on its strategic and operational
initiatives. These have included permanent cost restructuring to lower central
and operating company overheads, as previously reported.  The German
e-commerce platform was launched successfully during the period, as planned.

 

Outlook

The Board's expectations for full year underlying operating profit are
unchanged and in line with the guidance provided in August, with the benefits
from productivity and cost initiatives underpinning this outlook.

 

The Board continues to expect its strategic and commercial initiatives to
benefit medium term margin and profit growth, which will also be supported by
meaningful operating leverage when market volumes recover.  In addition, the
continued focus on cash generation has ensured that the Group retains good
levels of liquidity, providing a solid base for the Board to continue its
evaluation of the optimal approach to the refinancing of the Group's debt
facilities ahead of their maturity dates.

 

 

1.      Like-for-like is defined as sales per working day in constant
currency, excluding completed acquisitions and disposals. It does not reflect
adjustments for branch closures, openings, or consolidations.

2.      Company collated analyst expectations is for Full Year 2024
underlying operating profit (EBIT) of £25.4m, within a range of £24.0m to
£27.0m, as at 1 October 2024.

3.      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.

 

Contacts

 SIG plc                                       +44 (0) 114 285 6300 / ir@sigplc.com
 Gavin Slark       Chief Executive Officer

 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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