SIG plc, the Sheffield-based international building materials supplier, reported a revenue rise of 5% to £1.423 billion in the six months to June 30, 2023 “including 3% from acquisitions …”

However, SIG said like-for-like (LFL) revenue was flat year-on-year in the period “with the pass through of product price inflation being offset by volume declines in the majority of our key markets.”

SIG estimated the impact of inflation on revenue growth for the half year “was approximately 9%, with this impact reducing during the period.”

First-half profit before tax fell to £12.2 million from £26.2 million.

No interim dividend will be paid.

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

SIG CEO Gavin Slark said: “Our performance in the first half reflects the challenging market conditions we are currently facing, with the group’s LFL revenue growth flat year-on-year.  

“Despite these conditions, I’m very pleased with the progress we are making on many fronts to improve the business, notably with the initiatives across our Operating Companies to improve our ability to drive higher levels of profitable growth when market conditions recover.  

“In the first half these initiatives reflected a continuing focus on our people, our branches, and our productivity, creating a platform that will allow us to capture and maximise the significant opportunities I see for the medium term.

“Looking ahead, while we expect market conditions in the second half to remain difficult, we remain confident the business will grasp the opportunities it has to continue to improve its underlying operational performance.  

“This will, in turn, deliver higher levels of profitability as we drive towards our medium-term margin target of 5%.  

“The group is financially and commercially well placed to drive meaningful shareholder value in the medium and long term.”