SIG’s sales down 24pc following ‘ very challenging circumstances’

INSULATION GIANT SIG said the recent “very challenging” circumstances have resulted in an underlying pre- tax loss of £ 54m in the six months to June 30.

The Sheffield- based group said market fundamentals remain sound and near- term order books give an element of encouragement, but there remains significant economic uncertainty.

It said trading was better than anticipated following its initial estimates of the immediate Covid19 impact and the board now expects full year sales to be moderately higher than its guidance in May.

The second half is still expected to be loss- making, but at a lower rate than in the first half.

It said its branch restructuring in the UK is progressing to plan and it has been able to trade safely, working closely and flexibly with its employees, customers and suppliers to adapt to new Covid- 19 norms. Like- for- like first half sales fell 24 per cent, impacted by Covid- 19.

Steve Francis, SIG’s chief executive, said: “I would like to thank all our people for their resilience and commitment in the face of the very challenging circumstances of recent months, the effects of which clearly impacted our first half results.

“Providing a safe environment and instilling an even greater focus on good health and safety behaviours have been a major focus of the new management team.”

He said the group concluded the successful restructure of its financing facilities and a £ 165m capital raise in July. These, along with our careful management of working capital and cash in recent months, have created a sound financial base on which we can rebuild the business,” he added.

“The new management team has started to execute its strategy and implement its organisational model, which focuses on our local branch teams, enabling growth and returning to active industry leadership.”

Analyst Charlie Campbell, at Liberum, said: “SIG has reported a first half loss before tax of £ 54m compared to our estimate of £ 50m, from sales down 24 per cent to £ 818m. Net debt was £ 90m at the end of June, but was boosted by some payment deferrals.”