28th Nov 2013 09:21
LONDON (Alliance News) - SIG PLC Thursday said it expects a net annual benefit in the range of 1.0 million pounds - 5 million pounds in 2014, and between 15 million pounds and 20 million pounds in 2015.
In addition, SIG plans to invest an additional nearly 8 million pounds of capital expenditure relating to these projects in 2014.
According to the company, the strategic initiatives reinforce its confidence in achieving its return on capital employed target, which remains to exceed the Group's weighted average cost of capital by 300bps by 2015 assuming flat markets. SIG said its longer-term aspiration is to seek a return on capital employed beyond this target.
Further, the company targets around 30 million pounds of net annual benefit from strategic initiatives by 2016.
SIG PLC's Chief Executive said: "Although many of the building blocks to improve business performance are already in place and implementation is commencing, there is a significant step-up in activity going forward. 2014 is expected to be a year of investment and change, with meaningful payback from 2015 onward. We are excited about the targets we have set ourselves and will update the market regularly on our performance."
Copyright RTT News/dpa-AFX
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