2nd Oct 2024 12:30
(Alliance News) - SIG PLC on Wednesday cited ongoing softness in the European building and construction sector as it anticipates a further fall in revenue.
The Sheffield-based building materials firm reported a like-for-like revenue decline of 4% for the three months to September 30, compared to a year ago.
The only sections that had on-year revenue growth was UK Roofing, which was up 4% despite an overall fall of 5% for its UK business, while all of the Ireland business had a revenue rise of 20%.
"Whilst weak demand has continued to be a factor in the majority of the group's markets, reflecting the ongoing softness in the European building and construction sector, like for like performance improved sequentially in Q3 as expected," SIG said.
Looking ahead, the company said: "The board's expectations for full year underlying operating profit are unchanged and in line with the guidance provided in August, with the benefits from productivity and cost initiatives underpinning this outlook."
SIG said the range for the expected underlying operating profit for 2024 is between GBP24.0 million and GBP27.0 million, with an anticipated underlying operating profit of GBP25.4 million, according to collated analyst expectations.
It would be down 52% from GBP53.1 million reported for 2023 and present a slowed contraction from the 64% decline it had posted for the first half of 2024, when underlying operating profit dived to GBP11.7 million from GBP32.7 million a year prior.
SIG said: "The board continues to expect its strategic and commercial initiatives to benefit medium term margin and profit growth, which will also be supported by meaningful operating leverage when market volumes recover. In addition, the continued focus on cash generation has ensured that the group retains good levels of liquidity, providing a solid base for the board to continue its evaluation of the optimal approach to the refinancing of the group's debt facilities ahead of their maturity dates."
SIG shares rose 1.4% to 19.83 pence each on Wednesday afternoon in London.
By Tom Budszus, Alliance News slot editor
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