Sheffield-based specialist construction products company SIG faced 'challenging conditions' over half year

In the six months ended June 30 2023, SIG recorded revenue of £1,423m, which was 5 per cent higher on a reported basis when compared with the same period the year before, while underlying and statutory gross profit increased by 2.6 per cent to £364.8m.

SIG, which employs more than 7,000 people, operates across Europe with a total branch network of 440 sites.

Commenting on the results, Gavin Slark, the chief executive, said:

"Our performance in the first half reflects the challenging market conditions we are currently facing, with the group's LFL (like for life) revenue growth flat year-on-year.

"Despite these conditions, I'm very pleased with the progress we are making on many fronts to improve the business, notably with the initiatives across our operating companies to improve our ability to drive higher levels of profitable growth when market conditions recover.

"In the first half these initiatives reflected a continuing focus on our people, our branches, and our productivity, creating a platform that will allow us to capture and maximise the significant opportunities I see for the medium term.

"Looking ahead, while we expect market conditions in the second half to remain difficult, we remain confident the business will grasp the opportunities it has to continue to improve its underlying operational performance.

"This will, in turn, deliver higher levels of profitability as we drive towards our medium-term margin target of 5 per cent.

"The group is financially and commercially well placed to drive meaningful shareholder value in the medium and long term."

Commenting on outlook, the group said: “We continue to expect the second half to benefit from ongoing productivity initiatives and an expected profit of around £3m on one specific property move.

"The group's full year underlying operating profit is therefore expected to be in line with the board's recently revised guidance.

“Across the remainder of the year and beyond, we will continue to progress the strategic and operational initiatives which underpin our ambition for the group.

“As a European market leader in the supply of specialist insulation, and with 80 per cent of the group's sales covering insulation and the wider building envelope, we are well‐positioned to benefit from long‐term structural growth drivers, notably sustainable construction and decarbonisation of buildings.”

SIG said it remained confident in its ability to grow its market positions, and to improve profitability when conditions recover.