9th Mar 2016 07:50
LONDON (Alliance News) - Building products distributor SIG PLC on Wednesday said its pretax profit increased in 2015 due to lower one-off costs, but revenue was dragged lower by a challenging European market and a slowdown in the UK repair, maintenance and improvement segment.
The FTSE 250-listed group said pretax profit for the year to the end of December rose to GBP51.3 million from GBP39.0 million in 2014, mainly due to lower amortisation and one-off costs booked by the group. Stripping out those one-offs, underlying pretax profit fell to GBP87.4 million from GBP99.1 million.
Revenue edged down to GBP2.57 billion from GBP2.60 billion, partly due to a hit from the weak euro but also tough trading conditions in Europe, particularly the French market, to which SIG is particularly exposed, though some encouraging trading signs emerged in the fourth quarter.
This combined with a slowdown in the UK repair, maintenance and improvement in the UK in the second half and meant revenue for the year fell, though it would have increased in constant currencies. UK & Ireland revenue, overall, also increased in the year by 5.7%.
SIG will pay a final dividend of 2.91 pence per share, taking its total dividend up to 4.60p, up 4.5% from the 4.40p payout in 2014.
"This year we continue to expect good growth in the UK new-build construction market, primarily driven by the residential segment. Lead indicators also suggest that demand should pick up in the UK RMI sector as 2016 progresses," said Chief Executive Stuart Mitchell.
"Following an encouraging start to the year, with positive [like-for-like revenue] in both the UK & Ireland and Mainland Europe, the scope for further cost savings and growth opportunities within the group mean that we expect to make progress in 2016," he added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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