10th Jan 2023 10:10
(Alliance News) - Building products firm SIG PLC said underlying operating profit almost doubled last year, as it prepares for life under a new chief executive.
The Sheffield-based company said like-for-like sales rose 17% annually in 2022, with Poland and Benelux countries growing the most and UK and France the least. Revenue amounted to GBP2.74 billion, up from GBP2.29 billion in 2021.
Poland like-for-like sales rose by 28% in 2022, while in Benelux they climbed by 25%. In Ireland, they increased by 24%, and in the EU countries by 18%. German like-for-like sales rose 16% and in the UK they increased 15%. Meanwhile, France's Exteriors climbed by 15%, the country's Interiors rose by 12%.
SIG said underlying operating profit jumped to GBP80 million from GBP41 million.
"Group revenue growth rates across most geographies moderated in the second half compared to the first half primarily due to the impact of lower rates of input cost inflation, following the annualisation of significant rises in the second half of 2021, and some broadly based softening in market demand. Pass through of input cost inflation added to the top line in all geographies. We estimate the impact on revenue for the full year to be around 17% to 18%," SIG explained.
Gavin Slark joins as CEO at the start of next month, replacing Steve Francis.
The company its net debt as at December 31 to stretch to around GBP440 million from GBP365 million a year prior. The expected net debt is "mainly to increase in lease liabilities of GBP45 million, driven by timing of lease renewals and investments in new branches, and a currency movement of around GBP17 million on bond debt," SIG explained.
Looking ahead, outgoing CEO Steve Francis said: "SIG now has strong foundations for the future, and the group remains well-positioned to benefit from the need for governments and end-customers to increase the sustainability and energy efficiency of buildings over time. Gavin and I are now completing a very smooth leadership handover, and I am confident that Gavin and the team will build on the progress made in the last three years."
SIG will release its 2022 results on March 8.
SIG shares were 1.8% higher at 31.80 pence each in London on Tuesday morning.
By Tom Budszus, Alliance News reporter
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