Published by Insider Media
“PIVOTAL AND PRODUCTIVE YEAR” FOR SIG
Listed specialist building products distributor SIG has hailed a "pivotal and productive year" boosted by its return to growth strategy.
In a trading update, the Sheffield-headquartered company said like-for-like revenues had grown by 24 per cent compared to the prior year, which was impacted by the pandemic, and by 8 per cent on 2019.
As a result, the board expects to report revenues from underlying operations of £2.29bn and an underlying operating profit no less than £40m for the year ending 31 December 2021.
SIG said significant progress had been achieved thanks to its return to growth strategy, including improved organic sales performance. Demand remained "robust" across all key end markets, partially offset by industry-wide supply constraints.
The group's UK Interiors business benefitted from strategic and operational changes made since July 2020 while the UK Exteriors business continued to perform strongly. The UK business overall returned to profitability for the year, with Interiors returning to profit in the second half.
SIG added: "The board believes the group is well placed to build on the significant progress made in 2021. Whilst the Covid-19 backdrop may continue to create some market uncertainty, the fundamentals of the group's markets remain sound, notably with the increasingly robust Europe-wide commitments on energy efficiency and carbon reduction.
"Our order books continue to be robust, and we remain confident in the effectiveness of our supply chain management in meeting customer requirements and continuing to manage any potential volatility in supply and in input costs. As a result, the board is confident that the momentum built in 2021 will continue in 2022 and, providing there is no material disruption to either our business or end markets, expects the group to deliver solid organic revenue growth in the coming year."