SIG plc, the Sheffield-based international building and insulation materials supplier, lowered its profit outlook for the current financial year, citing sales declines in “challenging” market conditions. 

Its shares fell 12% on the London Stock Exchange. 

The company said it now expects 2024 full year underlying operating profit to be in the range £20 million to £30 million, which is below the current analyst range.

SIG said like-for-like sales for May and June were about 7% below the prior year, which is similar to the first four months of the year, but behind the company’s expectations.

“Subdued demand has continued to be a factor in the majority of the Group’s markets, reflecting the ongoing softness in the building and construction sector,” the company said. “This impact has been most notable in the French and German markets, and in the end markets of our UK Interiors business. Whilst we continue to see more robust demand in our Poland, Ireland and UK Exteriors businesses, Group sales overall were weaker than expected in May and June to date.”

SIG is scheduled to publish its first half 2024 results on 6 August.