9th Aug 2022 11:05
(Alliance News) - SIG PLC on Tuesday reported a surge in profit and revenue in the first half of 2022, as a result of price increases and increased sales, and said its outlook for full-year results remains in line with expectations.
SIG is a Sheffield, England-based insulation, roofing, commercial interiors and construction products supplier.
For the six months ending June 30, SIG reported a 23% revenue increase to GBP1.36 billion from GBP1.11 billion a year before. This can be attributed to price increases and "strong commercial execution" which resulted in a 21% increase in like-for-like sales growth from a year prior.
Pretax profit for the half-year multiplied to GBP26.2 million from a loss of GBP2.6 million a year prior, due to increased sales and a 3.1% increase in gross operating profit margin. SIG said gross margins rose as a result of pricing discipline, improving product mix and better rebates and terms.
Further, the company's increased profitability and sales volume has "more than offset" inflationary pressures in salaries, working capital and energy costs, SIG said.
The company declared no interim dividend, unchanged from a year before. Back in 2019, SIG paid an interim dividend of 1.25 pence per share.
Looking ahead, SIG said its expects market conditions, inflation dynamics and demand patterns to continue to vary across its market segments. The company remains committed to maintaining product availability and good service, it said, and it also expects free cash flow to be positive as seasonal working capital unwinds.
Having recently acquired Miers Construction Products in the UK and Thermodamm in Germany, SIG said it continues to expand in line with its strategy.
Chief Executive Officer Steve Francis said: "Our strong market position, growth strategy and decentralised model will continue to enable us to navigate the pricing environment well and drive market share gains. In addition, our scale, diversification and resilience in uncertain markets mean that we are confident both in delivering the board's expectations for the year and in our growth path to 5% operating margin in the medium term."
Shares in SIG were up 2.6% at 35.40 pence in London on Tuesday.
By Dominique Pretorius; [email protected]
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