REG - SIG PLC - Trading Update

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RNS Number : 6959G  SIG PLC  30 April 2025

 

30 April 2025

SIG plc: 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 1
January to 31 March 2025 ("the period", or "the quarter"), in advance of its
Annual General Meeting, which is being held tomorrow.

 

Key points

·   Group like-for-like(1) ("LFL") sales growth of 2% in the quarter,
reflecting continued market outperformance, combined with some further
stabilisation of market demand

o  All geographies reported positive LFL growth, excluding France

o  UK Interiors moved from 6% decline in H2 2024 to 4% growth in the quarter
as the business accelerates its turnaround plan

o  Germany continues to materially outperform its market

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

·   Group's 2025 full year outlook unchanged

 

Trading Summary

Group LFL sales were up 2% year-on-year in the quarter at £636m.  Reported
revenues were 1% lower, reflecting an impact of 2% in aggregate from working
days and exchange rates, as well as a 1% impact from branch closures over the
last year.  The Group's trading in April 2025 to date has continued in line
with the trends seen in the first quarter.

 

LFL volumes in the quarter were up 3%.  Modest inflation on input costs was
more than offset by continued pricing pressure in the market, contributing to
a net c1% reduction in pricing.

 

 1 January to 31 March 2025             LFL sales growth vs 2024  £'m

 UK Interiors                           4%                        132
 UK Exteriors                           6%                        92
 UK Specialist Markets                  2%                        59
 UK                                     4%                        283

 France Interiors                       (9)%                      46
 France Exteriors                       (2)%                      95
 Germany                                4%                        107
 Poland                                 3%                        58
 Benelux                                1%                        22
 Ireland                                2%                        25
 EU                                     0%                        353

 Group                                  2%                        636

 

Whilst demand in all markets remains significantly below historical levels,
with European construction at a low point in the cycle, there have been signs
of further volume stabilisation in the majority of our markets.  The benefits
of ongoing commercial and operational initiatives are enabling the business to
outperform local markets, with particularly strong performance in the UK and
Germany.  We are seeing clear early signs of improvement in the UK Interiors
business, in both top and bottom line performance, following the appointment
of a new Managing Director six months ago.  The French businesses are
continuing to perform robustly relative to a particularly challenging
market.  We expect their LFL growth to improve over the balance of the year,
not least as comparators soften.

 

Actions to manage near-term margin pressure and to strengthen our operating
platform under our 'GEMS' strategy are ongoing.  Alongside ongoing targeted
investment to support our strategic growth opportunities, the benefits from
productivity and cost initiatives will contribute incrementally as the year
progresses.

 

Outlook

Market conditions in 2025 to date are as expected, and our outlook for the
full year remains unchanged.  We continue to believe that, to the extent
there is the start of a recovery within 2025, it is more likely to drive
demand in the second half of the year.

 

We are mindful of very recent developments in the global economy, notably with
respect to tariffs.  The vast majority of our purchases are within Europe,
and most are made within the country in which the products are sold.  As such
we expect little direct impact from any potential changes in cross border
tariffs, but will remain watchful of any broader impact on both inflation and
market demand.

 

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.

 

Gavin Slark, CEO, commented:

"The Group has made an encouraging start to the year. Whilst we continue to
experience weak demand in our end-markets across the UK and EU, we are
navigating through this successfully.  We are creating better performing
businesses across the Group, which will help to significantly improve our
future profitability and cash generation when markets recover."

 

H1 Results date

We will publish our H1 2025 results on 5 August 2025 and will hold a
presentation and conference call for analysts and investors on that date.
 Details will follow nearer the time.

 

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.

 

 

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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