4th Jul 2018 09:01
LONDON (Alliance News) - SIG PLC on Wednesday reported flat like-for-like revenue for the first half and said it has hired Ernst & Young LLP as its auditor and brought in two new non-executive directors.
The FTSE 250-listed building materials company said its revenue from continuing operations in the six months ended June 30 increased 0.6%. Like-for-like revenue in the period were flat year-on-year, with UK & Ireland recording 3.1% drop and mainland Europe posting a 2.9% rise.
Following a "competitive audit tender process", SIG has appointed Ernst & Young as it external auditor with immediate effect.
SIG's shareholders voted to sack Deloitte LLP as the company's external auditor at its annual general meeting in May.
A whistle-blower revealed accounting irregularities at the company's Distribution business, related to rebates and other potential recoveries from suppliers.
The accounting irregularities resulted in the company overstating 2016 profit by up to GBP3.7 million and up to GBP400,000 in "years" before 2016.
SIG's internal review, undertaken after allegations of irregularities, also identified GBP2.5 million profit overstatement for the first half of 2017.
Ernst & Young was the only one of the "big four" accountancy firms to bid for the contract. SIG has pushed back the announcement of its interim results for the six months ended June 30 to September 21.
Looking ahead, SIG's expectation for its underlying profitability for the full year remains unchanged, "providing there is no further deterioration in UK market conditions".
The company said trading conditions "remain mixed" across the company's markets. There is "continued confidence" in Mainland Europe and Ireland but "ongoing challenges" in parts of the UK construction sector.
SIG is expecting a "significantly stronger" second half to the year. The company's "transformational plans" to deliver "meaningful cost benefits" and a return to "normal seasonality" should bring about "significant improvement".
In a separate announcement, SIG said it has hired Alan Lovell and Cyrille Ragoucy to the company's board as non-executive directors, effective August 1.
The company also said Non-Executive Director Mel Ewell will retire from the board effective July 31.
Chairman Andrew Allner said: "I would like to welcome Alan and Cyrille to the board. Both Alan and Cyrille bring extensive construction industry and turnaround experience in the UK and Europe. Their joining the board will significantly benefit the company as it executes its medium term turnaround plan and develops its long term vision and strategy for the future.
"On behalf of the board, I would like to thank Mel for his contribution to the company over the last seven years and in particular for his period as interim chief executive prior to the appointment of Meinie Oldersma as chief executive officer."
Shares in SIG were down 0.9% Wednesday at 137.10 pence each.
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