TIDMSHI
RNS Number : 3411Y
SIG PLC
04 May 2023
4 May 2023
SIG plc Trading Update
Trading in line with expectations
SIG plc ("SIG", or "the Group"), a leading supplier of
specialist insulation and building products across Europe, today
issues a trading update for 1 January to 30 April 2023 ("the
period"), in advance of its Annual General Meeting, which is being
held later this morning.
Key points
-- Trading in the period in line with management expectations
-- Group like-for-like(1) ("LFL") sales growth of 1%, with revenues of GBP924m
-- Results reflect challenging market conditions, more than offset by input price inflation
-- Solid sales growth from France, Germany, and UK Interiors
-- Group's 2023 full year outlook unchanged
Trading Summary
Group LFL sales were up 1% in the period compared to prior year.
Reported Group revenues were 7% higher in the period, including
c.3% from acquisitions, together with c.3% in aggregate from
movements on working days and exchange rates. Market conditions
remain challenging and Group volumes were lower, as expected. This
was more than offset by a continued positive tailwind from input
price inflation.
The overall impact of inflation is estimated to have added c.11%
to Group growth over the period. As expected, price inflation has
moderated since H2 2022, despite further price increases in early
2023, as we annualise some of the significant prior year price
increases.
1 January to %
30 April 2023 LFL growth
Sales vs 2022 GBP'm
UK Interiors 5% 249
UK Exteriors (3)% 142
UK 2% 391
------------------- ------------ ------
France Interiors 3% 76
France Exteriors 7% 165
Germany 2% 153
Poland (13)% 68
Benelux 11% 40
Ireland (17)% 31
EU 1% 533
------------------- ------------ ------
Group 1% 924
------------------- ------------ ------
Our French, German and UK Interiors businesses continued to
deliver solid sales growth. The UK Exteriors business saw some
further softening in the RMI end-market, continuing the trend seen
in the latter part of 2022. Volumes and market conditions have been
notably weaker in Poland and Ireland in recent weeks, with the
former also coming up against especially strong prior year
comparators.
The Group has continued to make progress on its strategic
initiatives, while managing challenging market conditions. During
2023 our operational priorities include active product category
management to develop product mix and margin over time and
leveraging prior year investment in new branches and strategic
relocations.
Outlook
Our outlook for FY23 remains unchanged. As set out in our FY22
results on 8 March 2023, we expect weaker and uncertain demand
conditions to prevail during 2023, offset by a continued tailwind
from input price inflation, albeit the latter will continue to
moderate further this year.
We continue to focus on operational agility, productivity, and
discipline in 2023. We remain confident in our ability to harness
the strong momentum in the business and further improve our market
positions, and to continue to improve our profitability when market
conditions recover.
As a European market leader in the supply of specialist
insulation, and with 80% of the Group's sales covering insulation
and the wider building envelope, we are well-positioned to benefit
from long-term structural growth drivers, notably sustainable
construction and decarbonisation of buildings. Notwithstanding
short-term market weakness, we expect to benefit from long-term
growth in demand for the Group's products across our pan-European
network of branches.
Following the arrival of Gavin Slark in February 2023 as new
CEO, the Group continues to review the strategic and operational
priorities in each of our operating companies and the roadmap
towards our medium term 5% operating margin target.
H1 Results date
We will publish our H1 2023 results on 8 August 2023 and will
hold a presentation and conference call for analysts and investors
at 10.00am (GMT) on that date.
1. Like-for-like is defined as sales per working day in constant
currency, excluding completed acquisitions and disposals
Contacts
SIG plc +44 (0) 114 285 6300 /
ir@sigplc.com
Gavin Slark Chief Executive Officer
Ian Ashton Chief Financial Officer
Sarah Ogilvie Head of Investor Relations
FTI Consulting +44 (0) 20 3727 1340
Richard Mountain
Peel Hunt LLP - Joint broker to
SIG +44 (0) 20 7418 8900
Mike Bell / Charles Batten
Investec Bank plc - Joint broker
to SIG +44 (0) 20 7597 5970
Bruce Garrow / David Anderson
LEI: 213800VDC1BKJEZ8PV53
Cautionary Statement
This document contains certain forward-looking statements
concerning the Group's business, financial condition, results of
operations and certain Group's plans, objectives, assumptions,
projections, expectations or beliefs with respect to these items.
Forward-looking statements are sometimes, but not always,
identified by their use of a date in the future or such words as
'anticipates', 'aims', 'due', 'could', 'may', 'will', 'would',
'should', 'expects', 'believes', 'intends', 'plans', 'potential',
'targets', 'goal', 'forecasts' or 'estimates' or similar
expressions or negatives thereof.
Forward-looking statements involve known and unknown risks,
uncertainties and other factors, which may cause the Group's actual
financial condition, performance and results to differ materially
from the plans, goals, objectives and expectations set out in the
forward-looking statements included in this document.
All written or verbal forward-looking statements, made in this
document or made subsequently, which are attributable to the Group
or any persons acting on its behalf are expressly qualified in
their entirety by the factors referred to above. Accordingly,
readers are cautioned not to place undue reliance on
forward-looking statements. No assurance can be given that the
forward-looking statements in this document will be realised;
actual events or results may differ materially as a result of risks
and uncertainties facing the Group. Subject to compliance with
applicable law and regulation, the Group does not intend to update
the forward-looking statements in this document to reflect events
or circumstances after the date of this document and does not
undertake any obligation to do so.
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