Sheffield’s SIG returns to profit but outlook ‘weaker’

SIG plc, the Sheffield-based international building materials supplier, said it returned to profit in 2022 but its shares fell about 7% as its new CEO warned the firm expects “weaker demand conditions to prevail during 2023.”

SIG said 2022 revenue rose to £2.74 billion from £2.29 billion in 2021 and it made profit before tax of £27.5 million compared to a loss of £15.9m in the prior year.

SIG’s biggest shareholder is US buyout firm Clayton, Dubilier & Rice with a 29% stake.

SIG’s new CEO Gavin Slark said: Trading in the first two months of 2023 saw mid-single digit like-for-like revenue growth, with the continued effects of input price inflation more than offsetting year-over-year volume declines. 

“Market conditions continue to vary across our geographic footprint, but overall we expect weaker 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.

As a European market leader in the supply of specialist insulation, SIG is well-positioned to benefit from long-term structural growth drivers, notably sustainable construction.  

“There is an increasing focus on the need to reduce building emissions, to increase energy efficiency and to use more sustainable materials.

With a strengthened financial position, good strategic momentum, pan-European footprint, and a diverse portfolio with opportunity for growth, I am confident in our ability to manage short-term market weakness during 2023 while maintaining a focus on sustainable long term value creation for all our stakeholders.”