Sheffield’s SIG expects revenue to rise to £2.3bn

Sheffield-based international building materials supplier SIG plc said on Tuesday it expects to report full-year 2021 revenues from underlying operations of £2.29 billion — a 24% rise on a like-for-like basis on 2020 and an 8% increase on 2019.

In a trading update for the year ended December 31, 2021, SIG said it was a “pivotal and productive year for the group” in which results were ahead of plan.

The firm said it expects an underlying operating profit of no less than £40 million.

SIG shares fell about 3%.

In the UK Interiors business, the strategic and operational changes made since July 2020 continue to drive the business’s return towards its previous market position and performance,” said SIG.

“The UK Exteriors business continued to perform strongly, helped by robust demand in RMI (repair, maintenance and improvement).

“The UK business overall returned to profitability for the year, with Interiors returning to profit in H2.

Performance in the EU was also encouraging in H2, with a good improvement in Q4 growth.  

“The performance remains strong in our French businesses, with the Exteriors business in particular maintaining good growth in Q4 despite some strong comparators.  

“Our Polish business continued to perform strongly against both 2020 and 2019 comparators, and was helped further by an especially high inflationary impact.  

“Our Germany and Benelux businesses both have new, experienced leadership in place, and we are confident that they will continue to build on the early signs of improvement already seen in Q4. 

“Ireland was, as anticipated, a further driver for the H2 acceleration vs 2019, rebounding after the H1 impact of local Covid-related restrictions.

Pass through of product price inflation added to the top line in all geographies, to an increasing degree in H2. 

“We estimate the impact on revenue for the full year to be around 6-7%. 

“Profitability continued to improve in H2 compared to the first half, with underlying operating profit approximately doubling in H2 vs H1.”

In its outlook, SIG said: “The board believes the group is well placed to build on the significant progress made in 2021.  

“Whilst the Covid-19 backdrop may continue to create some market uncertainty, the fundamentals of the group’s markets remain sound, notably with the increasingly robust Europe-wide commitments on energy efficiency and carbon reduction. 

“Our order books continue to be robust, and we remain confident in the effectiveness of our supply chain management in meeting customer requirements and continuing to manage any potential volatility in supply and in input costs. 

“As a result, the board is confident that the momentum built in 2021 will continue in 2022 and, providing there is no material disruption to either our business or end markets, expects the group to deliver solid organic revenue growth in the coming year.”

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