Interim Management Statement

RNS Number : 3411G

SIG PLC

11 May 2011

 



11^th May 2011                                                               

SIG plc

AGM and Interim Management Statement

SIG plc, a leading European specialist supplier of insulation, interiors, exteriors and specialist construction products, issues its Interim Management Statement for the period from 1 January 2011, ahead of its Annual General Meeting to be held later today at Aston Hotel, Britannia Way, Catcliffe, Sheffield, S60 5BD.

Trading

Trading for the first four months of 2011 has been in line with management's expectations.  Against a weak weather-affected corresponding period in 2010, Group sales increased 8% (9% on a constant currency basis) with, as anticipated, growth moderating from March onwards against tougher comparators.

In the UK and Ireland all divisions have shown growth, with the exception of Interiors Manufacturing, which continues to be impacted by weak trading conditions in the non-residential sector, and Energy Management, where CERT funding is materialising but has not yet been fully reflected in trading.

In SIG's principal markets in Mainland Europe, good progress has been made in France, Germany and Poland & Central Europe. Trading conditions in Benelux continue to be challenging.

In both regions markets remain competitive and gross margins remain at similar levels to those achieved in 2010.

Financial position

There have been no material changes in the financial position of the Group since the beginning of 2011.

Strategy

At the time of the 2010 Full Year Results announcement, SIG outlined three key strategic initiatives to improve business performance:  greater operational efficiency by leveraging the Group's scale and market coverage; upgrading the portfolio; and organic growth supported by strategic acquisitions.

Specifically in relation to upgrading the portfolio, SIG has recently sold its UK scaffolding & fencing sale and hire business, to Altrad Group S.A. for £7.1 million in cash, with the potential for a further contingent receipt of £1 million depending on future profits.  In 2010 the business reported a small underlying operating loss on sales of £25.4 million and was forecast to make a small profit in 2011.

Summary and Outlook

Trading for the first four months of the year has been in line with management's expectations, based on more stable market conditions and the measures taken to improve business performance.

Given the uneven pattern of H1 2010 comparators, it will be mid-year before the Group has a better view on the expected full year performance.  However, sales growth for the remainder of the year is expected to moderate further due to a combination of stronger comparators and the potential impact of UK Government expenditure cuts.

The Board continues to believe that the Group is well positioned to make progress through 2011.

Enquiries

SIG plc

Chris Davies, Chief Executive                                 + 44 (0) 114 285 6300

Gareth Davies, Finance Director

Simon Bielecki, Head of Investor Relations           + 44 (0) 114 285 6324

Financial Dynamics

Richard Mountain/Nick Hasell                                 + 44 (0) 20 7269 7291

Cautionary Statement

This Interim Management Statement is prepared for and addressed only to the Company's shareholders as a whole and to no other person.  The Company, its directors, employees, agents or advisors do not accept or assume responsibility to any other person to whom this Interim Management Statement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.

Certain information included in this Interim Management Statement is forward looking and involves risks and uncertainties that could cause the actual results to differ materially from those expressed or implied by forward looking statements.  It is believed that the expectations set out in these forward looking statements are reasonable but they may be affected by a wide range of variables which could cause future outcomes to differ from those foreseen in forward looking statements, including but not limited to, changes in risks associated with the level of market demand, product availability and pricing, competitor risk, credit risk, credit insurance, restructuring of SIG and exchange rates.  All statements in this release are based upon information known to the Company as at the date of this Statement.  The Company undertakes no obligation to publicly update or revise any forward looking statement, whether as a result of new information, future events or otherwise.  

 

END

 

 

IMSKBLFFFEFLBBZ