13th Mar 2014 08:15
LONDON (Alliance News) - SIG PLC said Thursday pretax profit for the year plummeted and revenue rose during a year of "contrasting halves," culminating in the firm boosting its dividend payment.
The specialist building products distributor said full year pre-tax profit dropped to GBP2.1 million from GBP43.7 million in 2012. Revenue for the year was up 4.4% to GBP2.6 billion, up on GBP2.5 million the previous year.
Despite the huge drop in pretax profit, the firm has boosted its total dividend for the year to 3.55 pence, up 18.3%.
"2013 was a year of contrasting halves. Following a challenging H1, which was affected by poor weather and weak market conditions, trading improved in both our regions as the year progressed and the Group delivered a good H2 performance," said Stuart Mitchell, Chief Executive.
In its results for the year to December 31, 2013, the firm said its pretax loss includes charges associated with restructuring, net fair value losses on derivative financial instruments, and net losses on the sale or agreed sale of businesses and associated impairment charges.
The company said its core markets of insulation & energy management, interior fit out and roofing products remain solid, with like-for-like sales up in the second-half up 2.2%, though down 0.4% for the full-year.
Looking ahead, the firm remains positive about its prospects, boosted by a good start to 2014, helped by milder weather conditions and weak comparatives, it said. "There is a significant step-up in activity and investment this year, with meaningful payback expected from 2015 onward, and a net annual benefit target of c.GBP30 million by 2016," said SIG.
"We expect construction activity in the UK residential market to remain buoyant, with the non-residential sector continuing to be broadly flat. In Mainland Europe construction markets are anticipated to be variable. The trading outlook, operational efficiency savings and a modest net benefit from our strategic initiatives give us confidence in achieving good progress in 2014," Mitchell added.
Shares in the firm were trading up 2.18% at 206 pence per share Thursday, the second highest gainer on the FTSE 250.
By Alice Attwood; [email protected]; @AliceAtAlliance
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
SIG