Trading Statement

SIG PLC 06 July 2007 TRADING STATEMENT 6 JULY 2007 SIG plc, the leading supplier of insulation, roofing, commercial interiors and specialist construction products issues the following trading update for the six months to 30 June 2007, in advance of the interim results which will be announced on 13 September 2007. Trading performance has been very strong in the first half of 2007, with sales and operating profits substantially ahead of the first half of 2006. Total sales exceeded £1 billion for the first time in a six month period, and are expected to be more than £1070m (2006: £850m), representing growth in excess of £220m (25.9%) on a continuing basis*. Like for like sales** growth was in excess of 10%. Underlying*** profit before tax for the six months to 30 June 2007 is expected to be not less than £61.0m, an increase on a continuing basis of £13.6m (28.7%), on the £47.4m reported in the first half of 2006. Underlying operating profit is expected to exceed £69.0m an increase of £15.4m, 28.7% on a continuing basis on the £53.6m reported in the first half of 2006. UK and Ireland (c.66% of Group sales) Total sales increased by c.18% over the first half of 2006, and like for like sales growth was in excess of 9%. All business streams have performed well, producing solid like for like sales growth over the corresponding prior year period. Underlying operating profits are substantially ahead of the £48.0m reported in the first six months of 2006. Mainland Europe (c.34% of Group sales) Total sales increased by c.50% in Sterling, and by c.53% in local currency. Like for like sales growth in local currency was in excess of 20%. All countries in which the Group has trading sites achieved substantial like for like growth. Underlying operating profits were significantly ahead of the £8.5m reported in the first six months of 2006. The very strong performance in Mainland Europe reflects both a general strengthening of market demand for the Group's products in each country, especially in Germany and Poland, and also the strong progress made by businesses acquired by SIG in 2006, most of which did not impact on the Group until the second half of 2006. Acquisitions The Group has completed 14 acquisitions, together adding 117 trading sites and annualised sales of c.£309m. Total consideration, including assumed debt and performance-related contingent consideration amounts to £261m. Of the £309m annualised sales, approximately £274m is in Mainland Europe, and £35m in the UK and Ireland. The acquisitions are broadly spread across the Group's existing business streams, with the recent acquisition of Lariviere, the leading specialist roofing materials supplier in France (annual sales of c.£229m), creating a bias in the mix of acquired sales so far this year towards the roofing sector. Trading Sites The Group presently has 735 trading sites, a significant increase on the 618 as at 31 December 2006. Outlook During the first six months of 2007, the Group experienced reasonably good overall levels of construction activity in the UK and Ireland, and strong increases in demand in Mainland Europe. Going forward, we do not anticipate any significant change in these conditions, other than in Ireland, where building activity is cooling. The second half of 2006 benefited from a sharp uplift in demand in Germany, and from the positive impact of acquisitions made in that period. In the light of this the year on year comparators for the second half of the year will be more demanding than in the first half. The ongoing programme of investing in growth for the future, together with the performance in the first six months of 2007, give the Board confidence that further progress will be made. Definitions * references to 'continuing basis' refer to comparisons with 2006 excluding the contribution from the USA business, which was sold in November 2006. ** 'like for like' is defined as the business excluding the impact of acquisitions made since 1 January 2006. *** 'underlying' is before the amortisation of acquired intangibles and hedge ineffectiveness. Enquiries: David Williams, Chief Executive SIG plc 0114 285 6300 Gareth Davies, Finance Director Gordon Simpson/Clare Strange Finsbury 020 7251 3801 This information is provided by RNS The company news service from the London Stock Exchange

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