Freezing weather weighs on SIG sales

INSULATION GIANT SIG said it expects a stronger second half of the year after poor weather conditions in the UK hit sales in February and March.

Much of the country was brought to a standstill during the Beast from the East snow and freezing cold weather, which had a big impact on construction.

Sheffield-based SIG said likefor-like revenues fell 4.4 per cent in the UK & Ireland in the first four months of 2018 following a significant adverse impact from poor weather conditions in the region during February and March.

The group’s Exteriors business was also hit by weak market conditions in UK commercial new build and the Repair, Maintenance and Improvement (RMI) markets.

SIG told shareholders at its AGM in Sheffield that group revenues from continuing operations increased by 2.2 per cent in the first four months of the year, with currency contributing 2.0 per cent to growth.

The group’s Mainland Europe business continued to perform well, with like-for-like revenues up 3.8 per cent during the period.

The company said that whilst construction activity in France has been affected by the recent increase in industrial action, and like-for-like sales in the group’s Air Handling business are dependent on the phasing of project revenues during the year, growth remained strong across Germa- ny, the Benelux and particularly Poland.

SIG said trading conditions remain mixed across the group’s markets, with continued confidence across Mainland Europe and Ireland but ongoing challenges in parts of the UK construction sector.

Analyst Graeme Kyle, at Shore Capital, said: “SIG has published like-for-like numbers which were heavily impacted by the severe UK weather.

“Notwithstanding a severe downturn in external demand, we do not think 2018 forecasts are at risk and retain our ‘buy’ recommendation.”