SIG plc, the Sheffield-based international building materials supplier, reported a 6.8% decline in like-for-like revenue to £1.317 billion in the six months to June 30, reflecting “prolonged challenging trading conditions in our larger businesses, leading to lower volumes.”
SIG also posted a statutory first-half loss before tax of £11.3 million compared to a profit of £12.2 million for the same period of the prior year.
“LFL revenue performance reflects challenging conditions in UK Interiors, France and Germany, while Poland and Ireland delivered growth against a stronger local backdrop …” said SIG.
“All businesses continue to perform well relative to their markets, most notably in Germany and UK Roofing …
“Further permanent cost restructuring actions taken in H1 2024 driving reductions in central and operating company overheads, now totalling £15m in annualised savings since H2 2023 (£6m year-over-year saving in H1 2024); total underlying savings in operating costs in the period of £24m vs the prior year, before inflation …”
SIG said its outlook for full-year 2024 remains in line with the recent update published on June 24, with underlying operating profit expected to be in the range of £20 million to £30 million.
SIG CEO Gavin Slark said: “Our results in the first half reflect the prolonged challenging market conditions we are currently facing across most of our European businesses. In light of these conditions, we took further actions to reduce our permanent cost base in the half, which will benefit us in the future.
“During the period, we also made further progress on our strategic initiatives to improve our underlying operations and to position us to capture additional growth when markets improve.
“This has included the launch of a new omnichannel and e-commerce platform for our business in Germany, with France to follow, both of which will enhance future profitability as well as customer experience and convenience.
“Across all of our operations we are implementing a range of initiatives under our ‘GEMS’ strategy, which will lead to a higher-value sales mix and will support delivery of our 5% operating margin target.
“The operational gearing in our business model applies equally strongly in conditions of rising demand, and, accordingly, the Board believes the Group remains well positioned to benefit from the market recovery when it occurs.”