REG - SIG PLC - 2025 Full Year Trading Update & Strategy Framework

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RNS Number : 5976O  SIG PLC  13 January 2026

13 January 2026

 

SIG plc

2025 Full Year Trading Update and Strategy Framework

 

SIG plc ("SIG", or "the Group"), a leading supplier of specialist insulation
and building products across Europe, today issues a trading update for the
year ended 31 December 2025 ("FY25"). On a webcast at 10.00 am (GMT) this
morning Pim Vervaat, the Group's CEO, will also share his initial observations
since joining on 1 October 2025 and a high-level view of the Group's future
strategy.

 

Key points

 ·         Results reflect continued strong commercial execution and productivity gains
           against a challenging market backdrop, particularly in the latter part of the
           year
 ·         Full year like-for-like(1) ("LFL") sales flat versus the prior year, with
           revenues of £2.6bn; Group continues to perform well relative to its markets
 ·         Underlying operating profit(2) expected to be c£32m, £7m higher than the
           prior year and in line with market expectations(3)
 ·         Restructuring and productivity initiatives contributed to an expected year
           over year underlying reduction of c£39m in operating expenses
 ·         Free cash outflow(4) of c£12m; robust liquidity of £171m at year-end, with
           RCF of £90m remaining undrawn throughout the year

 

Summary

The Group continued to perform well relative to its markets during the second
half of 2025, as well as delivering further significant benefits from its cost
reduction and efficiency programmes. Whilst these initiatives are helping
support near-term performance, they are also strengthening the Group's
commercial and operational capability, which will help drive higher
profitability as markets recover.

 

Subject to audit, the Board expects to report FY25 sales of £2.6bn and
underlying operating profit of c£32m, in line with market expectations.
Reported operating expenses for FY25 are expected to show an absolute
reduction of c£20m vs FY24, which before inflation and FX represents an
underlying reduction of c£39m, or 6%, reflecting the benefit of the
initiatives referred to above. Within this, restructuring initiatives
delivered c£18m of savings vs prior year.

 

The Board expects to report a free cash outflow for the year of c£12m (2024:
£39m outflow), a marked improvement on the prior year, and year-end gross
cash balances of c£81m (2024: £87m). Together with the Group's revolving
credit facility ("RCF") of £90m, which remained undrawn throughout the year,
this resulted in year-end liquidity of £171m. The Group anticipates
maintaining healthy levels of liquidity during 2026.

 

The Group expects to report net debt as at 31 December 2025 of c£518m
including leases (2024: £497m). Leverage at 31 December 2025 is expected to
be c4.7x, unchanged vs the prior year-end.

 

Trading summary

Reported Group sales were 1% lower in the year. This included a net 1%
negative impact from the combined effect of exchange rates, the number of
working days, and branch closures and openings during the year.

 

Group LFL sales were flat versus the prior year, up 1% in H1 and down 2% in
H2. Subdued demand has persisted across the Group's markets throughout the
year and softened further in the final months of the year in several
geographies, notably the UK, Germany and Ireland. Given this demand backdrop
pricing pressure has remained elevated, and this led to a net 1% reduction in
pricing in the year, despite modest increases in input costs.  The impact of
this was similar across H1 and H2.

 

 LFL sales growth    H1            H2     FY    FY 2025 sales

 2025 vs 2024        Restated(*)
                                                £m
 UK Interiors        6%            (1)%   3%    673
 UK Roofing          4%            (1)%   2%    453
 UK                  5%            (1)%   2%    1,127

 France Interiors    (7)%          (6)%   (7)%  190
 France Roofing      (4)%          (5)%   (5)%  388
 Germany             0%            (6)%   (3)%  432
 Poland              3%            5%     4%    261
 Benelux             3%            1%     2%    92
 Ireland             3%            (10)%  (3)%  102
 EU                  (1)%          (4)%   (2)%  1,464

 Group               1%            (2)%   0%    2,591

 

* Following a change in the UK management structure in November 2025, we now
report two segments in the UK, with the various businesses formerly reported
as "UK Specialist Markets" now reported within either Interiors or Roofing.
The H1 25 segmental information has been restated in order to present it on a
consistent basis.

 

Demand in all markets remains well below historical levels, with European
construction at a low point in the cycle and with longer than anticipated
delays to the start of meaningful recovery. Against this backdrop, our
businesses continue to outperform and in almost all cases take share within
their end markets.

 

The Group continues to make good progress on its operational initiatives,
including those to drive efficiencies in costs and working capital. Most
notably, the UK Interiors and Benelux businesses continue to benefit from the
self-help programmes put in place last year. The Insulation and Drylining
business that forms the majority of UK Interiors also had a particularly
strong year from a sales perspective, growing 8% in H1, 3% in H2, and 5% for
the full year. In Q4 2025 we removed the separate management structure that
was supporting the UK Specialist Markets businesses, and these businesses are
now reported within either UK Interiors or UK Roofing. We believe these
changes in management will allow us to better exploit the opportunities in
these smaller specialist businesses, including synergies across our own
portfolio. In December 2025, as part of the early phase of a portfolio review,
we closed one of the smaller UK businesses, Mayplas, as it did not have the
ability to deliver sustainable profitable growth in the future.

 

Strategy Framework

The Group's Vision 2030 strategy will build on the successful commercial,
operational and financial initiatives implemented over recent years, with the
aim of creating an agile, focussed and best-in-class pan-European growth
platform which, in the medium and longer term, can deliver an operating margin
of 3% - 5% through the cycle alongside robust and predicable cash generation.

 

The immediate priorities are to improve the operating margin through further
cost and efficiency programmes, including improved procurement. These will
also help maximise the upside potential from operational leverage as markets
improve and revenues grow. The Group also remains committed to sustaining
investment in commercial initiatives to drive continued local market
outperformance. We will, in addition, assess opportunities to simplify and
optimise the current business portfolio in order to enhance the Group's focus
on its most attractive growth markets and deliver value creation.

 

We will expand on the Vision 2030 strategic framework in the presentation and
conference call later today.

 

Commenting, Pim Vervaat, Chief Executive Officer, said:

"In 2025 the Group delivered a robust trading performance in continued
difficult market conditions. I have been impressed with the energy, commitment
and knowledge of the many people I have met across the Group during my first
100 days.

 

"SIG is well positioned in markets that continue to have strong long-term
growth drivers. The operating leverage benefits when markets return to growth
will be significant, and further opportunities for self-help have been
identified, including through procurement. We will focus on optimising both
the business performance and the business portfolio in order to create a
best-in-class growth platform for building materials distribution in Europe.
In 2026 we aim to deliver further financial and strategic progress, and I look
forward to working with the Board and all the SIG management teams in driving
substantial value over time."

 

Presentation today

We will hold a presentation and conference call for analysts and investors at
10.00am (GMT) this morning, 13(th) January, covering the trading update as
well as the initial observations of CEO Pim Vervaat and his high-level view of
the Group's future strategy.

 

Webcast link (Zoom):

https://storm-virtual-uk.zoom.us/webinar/register/WN_0PBnhGg2T9qSUJUPIxAMLw
(https://storm-virtual-uk.zoom.us/webinar/register/WN_0PBnhGg2T9qSUJUPIxAMLw)

 

 

FY25 Results date, and Outlook

We will publish our full FY25 results on 4 March 2026, and will also hold a
presentation and conference call at 10.00am (GMT) on that date. We will
provide a more detailed outlook on 2026 at that time.

 

 

The numbers in this update remain subject to final close procedures and to
audit.

 

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, net
restructuring costs, cloud-based ERP implementation costs and other specific
items. Other items are disclosed separately in order to give an indication of
the underlying earnings of the Group.

3.      Company collated analyst expectations is for Full Year 2025
underlying operating profit (EBIT) of £31.1m, within a range of £30.0m to
£34.5m, as at 12 January 2026.

4.      Free cash flow is defined as all cash flows excluding M&A
transactions, dividend payments, and financing transactions.

 

 

Contacts

 SIG plc                                       +44 (0) 114 285 6300 / ir@sigplc.com
 Pim Vervaat       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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