SIG PLC AGM Trading Update (5849N)
10 May 2018 - 4:00PM
UK Regulatory
TIDMSHI
RNS Number : 5849N
SIG PLC
10 May 2018
10 May 2018
SIG plc: AGM Trading Update
Board expectations for 2018 remain unchanged
SIG plc ("SIG" or "the Group"), a leading European supplier of
specialist building products with strong positions in its core
markets of Insulation & Interiors, Roofing & Exteriors, and
Air Handling, today issues a trading update for 1 January to 30
April 2018 (the "period"), in advance of its Annual General Meeting
which is being held at 12 noon today in Sheffield.
Trading summary
Group revenues from continuing operations over the period
increased by 2.2%, with currency contributing 2.0% to growth and
working days 0.5%.
January to January to
April 2018 April
2017
SIG Distribution (2.2)% +0.7%
SIG Exteriors (10.6)% +0.8%
Ireland & Other UK +4.1% +5.2%
UK & Ireland (4.4)% +1.0%
-------------------- ------------ -----------
France +1.4% +3.1%
Germany +5.0% (0.9)%
Poland +15.6% +4.8%
Air Handling (0.5)% +11.7%
Benelux +5.4% (6.7)%
-------------------- ------------ -----------
Mainland Europe +3.8% +2.0%
-------------------- ------------ -----------
Group (0.3)% +1.5%
-------------------- ------------ -----------
LFL revenues were down by 4.4% in the UK & Ireland, with a
significant adverse impact from poor weather conditions in the
region during February and March. The Exteriors business further
suffered from weak market conditions in UK commercial new build and
RMI markets, as previously indicated.
The Group's businesses across Mainland Europe continued to
perform well, with LFL revenues up by 3.8% during the period.
Whilst construction activity in France has been affected by the
recent increase in industrial action, and LFL sales in the Group's
Air Handling business are dependent on the phasing of project
revenues during the year, growth has remained strong across
Germany, the Benelux and particularly Poland.
Leverage
Leverage reduction remains a key medium term priority and the
Group continues to focus on structural reductions in levels of
working capital and sustained profit improvement to drive leverage
lower. Seasonal fluctuations mean that debt and leverage are likely
to remain similar to year end levels in the first half, but the
Group remains on course to deliver leverage in a 1.0 - 1.5x range
during 2018, with the Group continuing to target leverage below
1.0x over the medium term.
Outlook
Trading conditions remain mixed across the Group's markets, with
continued confidence across Mainland Europe and Ireland but ongoing
challenges in parts of the UK construction sector.
We continue to progress our plans to deliver a significant
improvement in our operational and underlying financial
performance, as well as focusing the portfolio and reducing
leverage. We expect a stronger second half to the year, reflecting
both normal seasonality and the benefit of ongoing cost and margin
actions coming through in H2. Providing there is no further
deterioration in UK market conditions, our expectations for
underlying profitability for the full year remain unchanged.
- Ends -
(1) Like-for-like is defined as sales per day in constant
currency excluding acquisitions and disposals.
Enquiries
SIG plc
Meinie Oldersma, Chief Executive Officer +44 (0) 114 285 6300
Nick Maddock, Chief Financial Officer +44 (0) 114 285 6300
Hilary Kendrick, Group Communications Director +44 (0) 114 285 6300
FTI Consulting
Richard Mountain +44 (0) 20 3727 1340
Jefferies Hoare Govett
Chris Dickinson / Paul Nicholls +44 (0) 20 7029 8000
Peel Hunt LLP
Justin Jones / Charles Batten +44 (0) 20 7418 8900
Cautionary Statement
This Trading Statement is prepared for and addressed only to the
Company's shareholders as a whole and to no other person. The
Company, its directors, employees, agents or advisors do not accept
or assume responsibility to any other person to whom this Trading
Statement is shown or into whose hands it may come and any such
responsibility or liability is expressly disclaimed.
Certain information included in this Trading Statement is
forward looking and involves risks and uncertainties that could
cause the actual results to differ materially from those expressed
or implied by forward looking statements. It is believed that the
expectations set out in these forward looking statements are
reasonable but they may be affected by a wide range of variables
which could cause future outcomes to differ from those foreseen in
forward looking statements, including but not limited to, changes
in risks associated with the level of market demand, product
availability and pricing, competitor risk, credit risk, credit
insurance, restructuring of SIG and exchange rates. More
information about the risks and uncertainties that may affect the
Group's performance is contained in the Annual Report to
Shareholders for the year ended 31 December 2017. All statements in
this release are based upon information known to the Company at the
date of this Trading Statement. The Company undertakes no
obligation to publicly update or revise any forward looking
statement, whether as a result of new information, future events or
otherwise.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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