8th Mar 2023 12:00
(Alliance News) - SIG PLC on Wednesday said it swung to a pretax profit in 2022 and reported a rise in annual revenue, but said it expects weaker demand conditions in 2023.
Shares were down 8.5% on Wednesday noon in London at 38.42 pence each.
Sig is a Sheffield-based insulation, roofing materials and building products supplier.
The company swung to a pretax profit of GBP27.5 million from a loss of GBP15.9 million in 2021, as operating profit rose to GBP56.2 million from GBP14.0 million.
Revenue rose to GBP2.74 billion from GBP2.29 billion, driven by the pass through of product price inflation in all geographies and the impact of Sig's strategic growth initiatives.
Particularly in the UK, revenue rose to GBP1.15 billion from GBP929.6 million a year earlier.
The firm declared no dividend for 2022.
It reiterated its commitment to return to paying a dividend "when it is prudent to do so".
Chief Executive Officer Gavin Slark said: "Trading in the first two months of 2023 saw mid-single digit like-for-like revenue growth, with the continued effects of input price inflation more than offsetting year-over-year volume declines. Market conditions continue to vary across our geographic footprint, but overall we expect weaker demand conditions to prevail during 2023, offset by a continued tailwind from input price inflation, albeit the latter will continue to moderate further this year."
By Xindi Wei, Alliance News reporter
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