REG - SIG PLC - Trading Statement <Origin Href="QuoteRef">SHI.L</Origin>

SIGAnnouncement

06/09/2014 02:41

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RNS Number : 6570L
SIG PLC
08 July 2014 
 
8 July 2014 
 
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 2014, in advance of its Half Year results
announcement on 12 August 2014. 
 
Trading 
 
Group sales from continuing operations increased by c.6.5% in the first half
to c.£1,285m.  As a result underlying profit before tax in H1 is expected to
be at least £40m (H1 2013: £33.6m*) despite being adversely affected by the
strengthening of Sterling against the Euro. 
 
As anticipated the Group's trading performance moderated during the period as
comparatives strengthened, with like-for-like sales increasing by 2.9% in May
and June combined.  This follows a strong start to the year which also
benefited from the mild winter. 
 
Like-for-like sales in the first half increased by 11.5% in the UK & Ireland
and 3.2% in Mainland Europe, with France ahead by 2.1% and Germany up by
5.1%. 
 
Strategic initiatives 
 
SIG continues to make good progress on its strategic initiatives to improve
business performance and is on track to achieve its £1m - £5m net benefit
target this year and remains committed to delivering its target of c.£30m in
2016. 
 
Outlook 
 
While construction markets in Mainland Europe remain variable, with France
continuing to decline, the outlook for the UK remains positive. 
 
The Group's first half performance provides a strong platform from which to
deliver its full year expectations, which remain unchanged despite adverse
movements in foreign exchange rates. 
 
SIG continues to expect to achieve good progress in 2014 based on the trading
environment, operational efficiency savings and a modest net benefit from the
strategic initiatives. 
 
*adjusted for the disposals of German Roofing and Miller Pattison.  The 2013
full year underlying profit before tax comparative is £91.2m. 
 
Enquiries 
 
 Stuart Mitchell, Chief ExecutiveDoug Robertson, Finance DirectorSimon Bielecki, Head of Investor Relations  SIG plc         +44 114 285 6300 +44 114 285 6324  
 Richard Mountain / Nick Hasell                                                                              FTI Consulting  +44 20 7831 3113                   
 
 
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 2013.  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. 
 
This information is provided by RNS
The company news service from the London Stock Exchange