SIG posts pre-tax profits of £7.5m after loss in previous year

The Sheffield-based company’s chief executive, Chris Davies, said the business enters “2012 as a much leaner, stronger and more focused organisation”, as its preliminary results for the year to the end of December, 2011, were announced.

Sales from continuing operations were up by 7.8 per cent to £2,744.8m, while underlying profit before tax from continuing operations increased by 27.3 per cent to £81.7m.

Mr Davies said: “We are pleased with these results and the progress we are making. I would highlight in particular the success of our organic growth strategy, with new branches moving into profitability more quickly than anticipated.

“During 2011 the group delivered on a number of key objectives. Operationally, we continued to outperform the market while improving gross margins and securing additional efficiency savings. Strategically, we increased focus on our three core markets of insulation and energy management, interiors and exteriors by divesting non-core operations. Financially, we improved returns and further strengthened our balance sheet.”

He said that given the current uncertainties in the macroeconomic environment, market volumes are expected to be slightly down overall in 2012. But he added: “However, we have a solid platform on which to build and are targeting further market outperformance, with new branches expected to make a significant contribution to future growth.”

Net debt was reduced by £69.1m to £115.9m. The firm announced a proposed final dividend of 1.5p per share, bringing total dividend for the year to 2.25p.