SIG PLC Temporary closure of UK and Ireland trading sites (9586H)
March 30 2020 - 2:00AM
UK Regulatory
TIDMSHI
RNS Number : 9586H
SIG PLC
30 March 2020
30 March 2020
SIG plc: Temporary closure of UK and Ireland trading sites and
further cost saving measures
SIG plc ("SIG" or the "Group"), a leading supplier of specialist
building materials to trade customers across Europe, announces the
temporary closure of its UK and Ireland trading sites in response
to the evolving C-19 situation.
UK and Ireland trading sites temporary closure
As the Group stated on 26 March 2020, SIG is committed to do
what it can to trade as normally as possible within local
government guidelines, allied to the need to preserve the safety of
colleagues, suppliers and customers. We also stated that the Group
would keep this position under daily review in every jurisdiction
in which it operates.
Since SIG's announcement on 26 March 2020, large parts of our UK
market have seen sales fall away rapidly, in common with the
broader construction industry. Therefore, we have concluded that it
is necessary and appropriate to temporarily close our UK operations
- specifically the Distribution and Roofing businesses. In
addition, the announcement of further restrictions by the Irish
Government on Friday evening has resulted in the suspension of
construction activity in the Republic of Ireland. As a result, all
Group trading sites in Ireland have also temporarily closed this
morning.
However, we will remain open to service critical and emergency
projects, such as for the NHS, energy and food sectors, as well as
for safety reasons and to ensure that there is an orderly closure
programme.
We will be reviewing Government guidance and measures to support
business continuity, as well as market conditions, continuously and
will re-open as soon as we can.
Further cost saving measures
We have committed to support all our colleagues during this
period of temporary closure. We will ensure that our UK colleagues
continue to receive a proportion of their pay during a period of
furlough and, in that context, we welcome the introduction of the
UK Government's Coronavirus Job Retention Scheme, which will help
to support this. Similar Government assistance to retain jobs in
Ireland is also welcome.
However, we are asking all our UK and Ireland employees to take
lower pay during this period and it is therefore deemed appropriate
for all members of the Board to take a 50% cut in pay at this time,
from 1 April 2020.
Preparing to re-launch as a stronger business
The UK businesses have been trading weakly, as indicated in our
announcement last week. We do believe, out of adversity comes
opportunity: the closure period will be used as an opportunity to
develop a revised strategy and organisational model designed to be
more sales-led, customer focused and responsive to local market
needs. Further details will be shared at our full year results
announcement.
Full year 2019 results announcement
The audit of the results for the year ended 31 December 2019 is
ongoing and it is anticipated that underlying profit before tax for
the year will be in line with the guidance of c.GBP42 million(1)
provided on 9 January, 25 February and 26 March 2020. However, f
ollowing the FCA's announcement on 26 March 2020 regarding
temporary relief for listed companies facing the challenges of
corporate reporting during the coronavirus crisis, the Board is
re-assessing the timing of this announcement which was due for
release at the end of April.
Other SIG Group operating companies
The trading and governmental measures in other markets in which
we operate are each different and evolving in different ways.
Accordingly, our businesses in France, Germany, Benelux and Poland,
as well as our Building Solutions business, continue to be open for
trade. As stated above the Group will keep this position under
daily review.
Contacts
+44 (0) 114 285
SIG plc 6300
Andrew Allner, Chairman
Steve Francis, CEO
Kath Kearney-Croft, Interim
CFO
+44 (0) 20 3727
FTI Consulting 1340
Richard Mountain
Note
(1) Underlying profit before tax stated before IFRS 16
adjustments, including profit before tax for the Air Handling
Division and the Building Solutions business and excluding
impairment and other non-underlying profits and losses.
This announcement contains inside information. The person
responsible for making this notification is Kulbinder Dosanjh,
Company Secretary.
Cautionary statement
This announcement is not intended to, and does not constitute,
or form part of, any offer to sell or an invitation to purchase or
subscribe for any securities or a solicitation of any vote or
approval in any jurisdiction. The information contained in this
announcement is not for release, publication or distribution to
persons in any jurisdiction where to do so might constitute a
violation of local securities laws or regulations.
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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