11th Jan 2022 10:41
(Alliance News) - SIG PLC on Tuesday said its second half and annual sales as a whole were ahead of pre-pandemic levels, with underlying operating profit in the second-half even doubling compared to the first one.
The Sheffield-based company said sales for 2021 grew 24% compared to the year before and 8% against 2019 results.
Sales in the second half were up 17% compared to a year prior and increased 15% compared to 2019 levels.
The international supplier of insulation, roofing, commercial interiors and construction products added that profitability in the second half improved significantly compared to the first one.
Underlying operating profit approximately doubled, it said.
SIG expects to report full-year revenue from underlying operations of GBP2.29 billion and an underlying operating profit of at least GBP40 million.
This performance was attributed to strategic initiatives that improved organic sales growth and robust demand across all key end markets.
Nevertheless, SIG noted that the growth was partially offset by supply chain constraints.
Other headwinds, like inflationary increases in input costs, however, were managed well.
Net debt as of December 31 is expected to be around GBP364 million on a post international financial reporting standards 16 basis, with gross cash balances of GBP145 million.
The also company completed refinancing in late 2021, which is expected to provide a long-term platform to support strategic growth ambitions.
SIG believes that it is well-placed to build on the progress made in 2021, with a robust and confidence in its ability to manage its supply chain, meet customer requirements and manage any potential volatility in supply and in input costs.
Providing there is no disruption to the business or its end markets, the company, therefore, expects to deliver "solid" organic revenue growth this year.
SIG shares were down 1.4% at 45.92 pence each on Tuesday morning in London.
By Abby Amoakuh; [email protected]
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