SIG swings to underlying loss as outlook remains uncertain
By Benjamin Chiou
Date: Wednesday 05 Mar 2025
(Sharecast News) - Building products group SIG swung to an underlying loss in 2024 as a result of ongoing challenging market conditions and pointed to continued "softness" in 2025.
The company, which provides insulation, roofing, commercial interiors and specialist construction products, reported an underlying loss before tax of £14.3m for last year, compared with a profit of £17.4m in 2023.
Underlying revenues declined 4% to £2.61bn, as a 6% drop in like-for-like sales in the first half was followed by a 2% decline in the second.
The year-end cash balance stood at £87.4m, down from £132.2m a year earlier, while net debt swelled to £497m from £458m.
SIG said it undertook "extensive" cost and restructuring action during the year, including cutting headcount by 430 and closing 17 underperforming branches.
"The group's 2024 results reflect a robust trading performance in challenging markets," said chief executive Gavin Slark.
"We continued to experience lower volumes from weak end-markets across the UK and EU, but we have used this period to reshape our operations, through cost reduction and restructuring actions, and to create better performing businesses across the group."
For 2025, SIG said that a recovery in end-markets - if it comes - wouldn't likely happen until the second half. "Trading trends in early 2025 have been largely as we would have expected, and LFL sales for the first two months of the year were flat on prior year," the company said.
Nevertheless, Slark said the group "remains very well positioned to benefit from the market recovery when it occurs".
Shares were up 0.9% at 11.92p by 0822 GMT.
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