SIG plc, the Sheffield-based international building materials supplier, said its group like for like (LFL) revenue performance saw a sequential improvement in the three months to September 30, 2024 — falling 4% versus the prior year compared to the 7% decline reported in the first half.
In a trading update for the quarter SIG said: “Whilst weak demand has continued to be a factor in the majority of the group’s markets, reflecting the ongoing softness in the European building and construction sector, LFL performance improved sequentially in Q3 as expected.
“This was despite the effect of strategic branch closures, which form part of the restructuring programmes in the UK, Germany and France, and which impacted the group LFL performance by c1% in the period.
“Deflationary headwinds moderated further in the period, to c2%, and there has been some encouraging stabilisation in overall volumes, which are down only 1% excluding the branch closure impact.
“Nearly all of the Group’s businesses achieved an improved LFL result in Q3 compared to H1, with the UK businesses, France Roofing, Ireland and Benelux showing the biggest improvements. Poland reported a weaker Q3 as the non-residential market slowed more than expected over the summer.
“The group continues to make good progress on its strategic and operational initiatives. These have included permanent cost restructuring to lower central and operating company overheads, as previously reported. The German e-commerce platform was launched successfully during the period, as planned.”
In its outlook, SIG said: “The board’s expectations for full year underlying operating profit are unchanged and in line with the guidance provided in August, with the benefits from productivity and cost initiatives underpinning this outlook.
“The board continues to expect its strategic and commercial initiatives to benefit medium term margin and profit growth, which will also be supported by meaningful operating leverage when market volumes recover.
“In addition, the continued focus on cash generation has ensured that the group retains good levels of liquidity, providing a solid base for the Board to continue its evaluation of the optimal approach to the refinancing of the group’s debt facilities ahead of their maturity dates.”