Sheffield’s SIG warns of extended shortages

Shares of Sheffield-based building materials supplier SIG plc fell about 7% on Tuesday after it reported its first-half revenue rose 32% to top £1.1 billion — but warned that shortages of materials “could be more significant” in the second half of the year and “could persist for an extended period.”

SIG said its statutory loss before tax narrowed to £1.6 million in the six months to June 30 compared to a loss of £125.4 million for the same period of the previous year.

The company said no interim dividend will be paid for 2021.  

However, it reiterated its medium-term commitment to return to a progressive dividend policy.

In its outlook, SIG said: “We are anticipating a continued impact from material shortages, which could be more significant than in H1, and which could persist for an extended period. 

“Driver shortages have also affected the supply chain in recent weeks, notably in the UK.

Given these prevailing macro-economic uncertainties, we retain a cautious view on market conditions for the remainder of the second half at this stage. 

“However, the strong results in H1, the solid trading seen in July/August and continuing robust demand, together with the effectiveness of our supply chain management and commercial agility, gives the board confidence for the full year performance. 

“Providing the disruption from material shortages and haulage constraints does not worsen in coming months, full year underlying operating profit is now anticipated to be ahead of prior expectations.”