SIG PLC on Monday said it expects profit to land at the lower end of market expectations, as it predicts ‘weak and uncertain demand conditions’ for the rest of the year.
Shares in SIG, a Sheffield, England-based insulation, roofing, commercial interiors and construction products supplier, dropped 10% to 31.00 pence in London on Wednesday morning.
The company said expects to report revenue of £1.42 billion for the six months to June 30, flat year-on-year on a like-for-like basis. SIG said volume declines were offset by input price inflation.
‘Market conditions remained challenging and variable, with notably softer demand in May and June, particularly in Germany and France,’ said SIG.
The company said it expected weak and uncertain demand conditions throughout the rest of the year.
SIG said it expected underlying operating profit to be around £33 million, with the early impact of productivity initiatives offsetting demand weakness and inflationary impact on operating costs. It would represent a 22% fall from £42.5 million a year prior, however.
‘Whilst trading in recent weeks leads us to be more cautious as to the timing of any broad-based improvement in demand conditions, the second half will benefit from ongoing productivity initiatives as well as an expected profit on one specific property move,’ SIG said.
Looking ahead, it expects underlying operating profit at the lower end of a £65.3 million to £84.0 million analyst expectations range. At worst, that range would represent a 19% fall from £80.2 million in 2022.
Copyright 2023 Alliance News Ltd. All Rights Reserved
