SIG PLC AGM Trading Statement (7845E)
May 11 2017 - 2:00AM
UK Regulatory
TIDMSHI
RNS Number : 7845E
SIG PLC
11 May 2017
11 May 2017
SIG plc
AGM Trading Statement
SIG plc ("SIG" or "the Group"), a leading distributor of
specialist building products in Europe, today issues a Trading
Statement for 1 January to 30 April 2017 ("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 increased 6.5% in the
period, with currency contributing 5.0% to growth, acquisitions
0.7%, offset by fewer working days (0.6) %. As a result, Group
like-for-like ("LFL") revenues were ahead by 1.4%, in line with
expectations.
LFL revenues were up by 0.5% in the UK & Ireland and up by
2.4% in Mainland Europe. France in particular recorded a much
improved performance, with LFLs increasing 3.1% as SIG began to
benefit from an improving French residential construction market.
LFLs in SIGD, the Group's insulation and interiors business in the
UK, were up 0.3%. Air Handling continued to grow strongly, with LFL
revenues up 16.3% in the period.
SIG has recently closed Metechno, the offsite manufacturer of
bathroom pods and utility cupboards contained within its Offsite
Construction division, given its sub-scale nature in what is an
increasingly competitive and commoditised market environment. The
Group has also taken the decision to close its small scale Austrian
operations and is in the process of winding these down.
Leverage
Leverage reduction remains a key short-term priority for the
Group. Management continues to pursue a number of actions to
strengthen the Group's balance sheet including asset disposals,
more tightly focusing on cash generation and working capital
management, and moderating capital expenditure.
As a result of these and other measures, and from an expected
seasonal peak at the half year, SIG expects leverage to decline in
the second half of 2017. The Group is targeting leverage to return
to its 1.0 - 1.5x range in 2018.
Outlook
The Group's 2016 results were weighted towards the first half of
the year. Accordingly SIG expects its H1 2017 performance to be
lower than that achieved in H1 2016, and to be comparable with H2
2016. For the full year 2017 the Board expects the business to show
a stronger second half, as is usual.
This year has started in line with expectations. Whilst some
increased supplier price inflation is being seen and there exists
political uncertainty in some of SIG's major countries of
operation, the Group will continue to focus on driving improved
customer service and operational performance in competitive
markets.
Enquiries
SIG plc
Meinie Oldersma, Chief Executive Officer +44 (0) 114 285 6302
Nick Maddock, Chief Financial Officer +44 (0) 114 285 6302
Simon Bielecki, Head of Investor Relations +44 (0) 7515 794359
FTI Consulting
Richard Mountain/Nick Hasell + 44 (0) 20 3727 1340
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 2016. 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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