Full year results for the year ended 31 Dec 21

Risk	Mitigations
Cyber security: Internal or external cyber-attacks could result in system disruption or sensitive date being compromised There is a risk that we lack the capabilities to effectively prevent, monitor, respond or recover from suspected cyber-attacks on our IT infrastructure. Such attacks may result in a loss of data or disruption to IT services which may have a significant impacts on our ability to operate and comply with data protection and privacy laws (e.g. GDPR) and may have a detrimental effect on our reputation.	Cyber security continues to receive Board and Executive Leadership Team focus with an emphasis on ensuring that appropriate technologies are deployed across IT infrastructure to manage cyber threats. Regular and independent reviews are performed to assess the nature of our cyber threats, security processes and initiatives. They also ensure that we implement appropriate tools and processes to better identify and remediate new and emerging cyber risks and vulnerabilities. Cyber-incident response protocols are also in place to support our ability to effectively respond and recover from a cyber threat or incident and ongoing cyber training campaigns and initiatives ensure employees are alert to the nature and consequences of cyber-attacks.
Health & Safety: Danger of incident or accident, resulting in injury or loss of life to employees, customers, or the general public There is a risk that poor organisational arrangements or behavioural culture with regards to Health & Safety causes harm to individuals and as a result may result in enforcement action, penalties, reputational damage, or adverse press coverage.	The Group Director of Health & Safety is a member of the Executive Leadership Team and provides strategic leadership for all matters relating to health, safety and environmental performance, oversight and strategy. He is supported by local Health & Safety managers, embedded in each of our businesses, who provide local leadership and support, and provide regular monitoring and reporting of key performance metrics and the status of local actions and initiatives implemented. A compliance standards framework is in place to ensure the adequacy of local Health & Safety standards and arrangements with assurance provided through a programme of compliance audits performed by suitably trained and experienced Health & Safety professionals.
Macro-economic uncertainty: Macro-economic volatility impacts the Group's ability to accurately forecast and to meet internal and external expectations Supply and demand distortions (such as goods and materials shortages throughout the global supply chains and increased inflationary pressures) and the re-imposition of public health restrictions in response to future waves and variants of Covid-19 may continue to impact European economies throughout 2022. This volatility has the potential to impact customer demand, along with presenting significant challenges to our financial, operational and commercial resilience, whilst adding costs to our operations and making planning and forecasting more difficult. Very recently the conflict in Ukraine has contributed to heightened uncertainty. Changes in macro-economic conditions may adversely affect the Group's people, business, results of operations, financial condition or prospects.	We continue to assess inflationary and other supply chain pressures and impacts on product pricing and will continue to work with our suppliers to identify opportunities to improve supply chain resilience and to selectively pre-purchase products in order to ensure continuity of supply. The Group's geographical diversity across Europe reduces the impact of changes in market conditions in any one country while industry based KPIs, monitored monthly at a Group and operating company level, help to ensure that warnings and indicators of risk are identified early, and appropriate mitigation strategies implemented.
Attract, recruit and retain our people: Failure to attract and retain people with the right skills, drive and capability to reshape and grow the business A combination of structural labour and vocational skills shortages in the construction sector, exacerbated by reduced short term intra-EU and UK-EU mobility resulting from both Covid-19 restrictions and Brexit, has the potential to negatively impact SIG's ability to attract, recruit and retain staff across the full spectrum of disciplines.	We continue to invest in learning and development programmes to ensure both vocational and technical training needs are met whilst retaining an agile workforce. We ensure accountabilities, responsibilities, and organisational structures are regularly reviewed and where necessary restructured to optimise employee motivation and engagement. Ongoing enhancements to pay and conditions, including benchmarking remuneration packages to ensure market competitiveness, broadening the scope of variable elements of remuneration and the development of retention and succession plans for critical roles helps to mitigate this risk.
Data quality and governance: Poor data quality negatively impacts our financial management, fact-based decision making, business efficiency, and credibility with customers There is a risk that we lack the necessary quality of systems and processes to ensure sufficient granularity, completeness, and accuracy of vendor, product, and pricing master data. This has the potential to impact our ability to deliver a digital customer experience, provide enhanced product and customer analytics or insight and comply with both existing and new regulatory requirements.	Product and customer data quality remains a focus area for our operating companies, who continue to monitor, assess, and upgrade their product data requirements, capabilities, and governance considering ongoing changes in business needs and regulation.
Environmental, social and governance (ESG): SIG suffers reputational impacts due to poor environmental, social and governance arrangements and performance Public and commercial consciousness has been growing on a wide range of environmental, social and governance issues, including climate change, employee wellbeing and how an organisation contributes to society. Organisations should not only minimise their negative impacts, but to also contribute positively to both society and the environment. While SIG has a long and rich heritage in helping the construction industry deliver energy efficient solutions and products, risks remain in terms of how we deliver our ESG agenda. This is particularly the case in how we ensure we achieve our stated aims with regards to climate change. These risks include the cost and complexity of compliance, the challenges presented by the decarbonisation of our vehicle fleet and estate and how we engage with the wider industry to reduce product and supply chain carbon impacts.	We have set ambitious ESG commitments and will focus on demonstrating leadership in building materials distribution, Health & Safety, committing to a net zero carbon target by 2035 at the latest, sending zero SIG waste to landfill by 2025, partnering with manufacturers and customers to reduce carbon and waste across the supply chain and to being recognised as the employer of choice in building materials distribution. These commitments will be supported by verifiable and evidenced based data to ensure that progress in achieving these aims and ambitions is monitored and subject to appropriate rigour.
Mergers and acquisitions: We lack the capabilities to identify, acquire and integrate significant mergers and acquisition opportunities and ensure deals deliver desired scalability and value creation As part of our growth strategy, we may from time to time acquire new businesses. Such decisions are based on detailed plans that assess the value creation opportunity for the Group. By their nature, there is an inherent risk that we fail to manage the execution and integration risks which may result in delays or additional costs and impact the future value and future revenues generated.	We have dedicated M&A Group resource supported by appropriately skilled in-house expertise and the use of approved external advisors. Clear accountability and authority limits for the initiation and approval of M&A activity is clearly defined in the Group Delegation of Authority. Resource is also available in the organisation to ensure that transactions are subject to post-integration and lessons learnt exercises.
Legal or regulatory compliance: We fail to comply with or are found to be in breach of legal or regulatory requirements The Group's operations are subject to an increasing and evolving range of regulatory and other requirements in the markets in which it operates. A major corporate failure resulting from a non-compliance with legislative, regulatory or other requirements would impact our brand and reputation, could expose us to significant operational disruption or result in enforcement action or penalties.	Our Group General Counsel is a member of the Executive Leadership Team and is supported by appropriately skilled in-house legal and company-secretarial resource at Group and operating company level with further support provided by an approved panel of external lawyers and advisors. Policies and procedures are in place to ensure compliance with legal and regulatory frameworks, including Health & Safety, environmental, ethical, fraud, data protection and product safety. The Group has a dedicated internal controls function to ensure that appropriate controls are in place and are operating effectively to mitigate against material financial misstatement, errors, omissions or fraud. Our Code of Conduct is available on our website and forms part of our employee's induction programme. E-learning tools are also deployed across the organisation to ensure employees are aware of, and understand their, obligations. A whistleblowing hotline, managed and facilitated by an independent third party, is in place throughout the Group. All calls are followed up and investigated fully with all findings reported to the Board.
Digitalisation: SIG fails to maintain or offer the digital capabilities necessary to maintain market competitiveness Increased technological innovation and change, some of which has been driven by the societal and working environment challenges presented by the Covid-19 pandemic, has accelerated the increasing role digitalisation will have in the construction materials supply chain. Both suppliers and customers are increasingly seeking digital solutions to enable a more integrated and frictionless experience. This risk may be exacerbated by legacy systems and technologies which are heavily customised, require significant system maintenance to prevent outages and lack the functionality to allow their integration into a more modern digital infrastructure.	We continue to evaluate new technologies and make investments in the digital workplace to ensure that we maintain a competitive digital proposition. Across our markets each operating company is responsible for ensuring that it implements the necessary technologies and ways of working to ensure that it can maximise digital opportunities in terms of enhancing the customer experience and optimising transactional, fulfilment or process efficiencies. During 2021, we benchmarked our digital capabilities across the Group and have identified opportunities for further growth in digital, particularly with regards to how we can increase our own internal efficiencies and enhance the customer experience. This will form the basis of the focus on developing our digital capabilities throughout 2022.
Change management: Failure to deliver the change and growth agenda in an effective and efficient manner, resulting in management stretch, compromised quality, and inability to meet growth targets As part of the "Return to Growth" strategy we have made significant changes to our operating model, infrastructure, and leadership. As we enter the next phase of executing our strategy, allied to ongoing economic and pandemic-driven shifts in everything from demand patterns, delivery models and working arrangements, there is a risk that the business is challenged by "change fatigue" and future changes either are not implemented as planned or benefits realised.	Operating companies continue to manage change portfolios through programme management governance committees. Increased monitoring has been implemented, particularly regarding progress against growth initiatives, in line with our strategy. Monitoring of business growth metrics and early warning indicators or trends, continues as part of business reviews at both the management and Board level. Our ongoing staff engagement surveys continue to facilitate the early identification of change impacts in terms of our employees and action plans are implemented and monitored accordingly.

Companies

SIG (SHI)

UK 100

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	2021	Restated ⁵ 2020	Change vs 2020
Underlying¹ revenue	£2,291.4m	£1,872.7m	22.4%
LFL² sales growth	24.3%	(13.3%)
Gross margin	26.3%	25.1%	120bps
Underlying¹ operating profit/(loss)	£41.4m	(£53.1m)
Underlying¹ profit/(loss) before tax	£19.3m	(£76.1m)
Underlying¹ earnings/(loss) per share	0.3p	(10.0p)	10.3p
Underlying operating margin	1.8%	(2.8%)	460bps
Net debt	£365.0m	£238.2m
Net debt (pre-IFRS 16)	£128.6m	£4.1m

Statutory results	2021	Restated⁵ 2020
Revenue³	£2,291.4m	£1,874.5m
Operating profit/(loss)³	£14.0m	(£160.0m)
Loss before tax³	(£15.9m)	(£194.6m)
Basic loss per share³	(2.4p)	(23.1p)
Total loss after tax⁴	(£28.3m)	(£131.5m)
Dividend per share	n/d	n/d

SIG plc		+44 (0) 114 285 6300
Steve Francis	Chief Executive Officer
Ian Ashton	Chief Financial Officer

FTI Consulting		+44 (0) 20 3727 1340
Richard Mountain

Peel Hunt LLP - Joint broker to SIG		+44 (0) 20 7418 8900
Mike Bell / Charles Batten

Jefferies International Limited - Joint broker to SIG		+44 (0) 20 7029 8000
Ed Matthews / Will Soutar

LFL sales growth 2021 vs 2019	H1	Q3	Q4	H2	FY

UK Interiors	(19)%	0%	15%	7%	(8)%
UK Exteriors	14%	26%	29%	28%	21%
UK	(7)%	10%	22%	15%	4%

France Interiors	8%	1%	13%	7%	7%
France Exteriors	19%	11%	40%	25%	22%
Germany	1%	3%	12%	7%	4%
Benelux	(10)%	(12)%	(1)%	(6)%	(8)%
Poland	20%	33%	41%	36%	29%
Ireland	(21)%	6%	14%	10%	(5)%
EU	7%	8%	22%	15%	11%

Group	1%	9%	22%	15%	8%


LFL sales growth 2021 vs 2020	H1	Q3	Q4	H2	FY	FY 2021 sales
						£m
UK Interiors	54%	30%	21%	26%	38%	508
UK Exteriors	58%	24%	17%	20%	36%	422
UK	56%	27%	19%	23%	37%	930

France Interiors	38%	2%	10%	6%	20%	195
France Exteriors	34%	6%	17%	12%	22%	406
Germany	11%	7%	9%	8%	10%	393
Benelux	2%	0%	17%	9%	5%	92
Poland	22%	44%	46%	45%	33%	187
Ireland	14%	18%	9%	13%	14%	88
EU	22%	11%	16%	14%	17%	1,361

Group	33%	17%	17%	17%	24%	2,291

			LFL sales
	Underlying revenue 2021 £m	Underlying revenue 2020 £m	v2020	v 2019	Underlying operating (loss)/profit 2021 £m	Underlying operating loss restated 2020 £m
UK Interiors	507.4	357.4	38%	(8)%	(2.5)	(45.3)
UK Exteriors	422.2	310.1	36%	21%	25.0	(7.3)
UK	929.6	667.5	37%	4%	22.5	(52.6)

	2021 £m	Restated 2020 £m
Underlying profit/(loss) before tax	19.3	(76.1)
Other items - impacting profit/(loss) before tax:
Amortisation of acquired intangibles	(4.7)	(5.6)
Impairment charges	(10.2)	(61.5)
Net restructuring costs	(3.7)	(6.7)
Onerous contract costs	(2.0)	(13.2)
Cloud computing configuration and customisation costs	(3.3)	(7.1)
Costs associated with acquisitions	(1.5)	(0.2)
Costs associated with refinancing	(2.4)	(7.4)
Non-underlying finance costs	(7.8)	(11.6)
Profit on agreed sale or closure of non-core businesses and associated impairment charges	-	0.6
Net operating losses attributable to businesses identified as non-core	-	(0.3)
Investment in omnichannel retailing	-	(4.2)
Other specific items	0.4	(1.3)
Total Other items	(35.2)	(118.5)
Statutory loss before tax	(15.9)	(194.6)

	2021 £m	Restated 2020 £m
Underlying operating profit/(loss)	41.4	(53.1)
Add back: Depreciation	68.3	68.4
Add back: Amortisation	3.4	4.8
Underlying EBITDA	113.1	20.1
Cash exceptionals	(10.9)	(19.7)
Increase in working capital	(85.4)	(42.1)
Repayment of lease liabilities	(57.3)	(54.8)
Capital expenditure	(18.6)	(13.3)
Other	(15.0)	5.1
Operating cash flow	(74.1)	(104.7)
Interest and financing	(22.7)	(22.6)
Refinancing cash costs	(16.9)	(8.3)
Tax	(10.4)	(9.7)
Free cash flow	(124.1)	(145.3)
(Acquisitions)/disposals	(10.6)	147.0
Drawdown/(repayment) of debt	52.0	(85.2)
Net proceeds from equity raise	-	151.9
Total cash flow	(82.7)	68.4
Cash and cash equivalents at beginning of the year¹	235.3	145.1
Effect of foreign exchange rate changes	(7.5)	21.8
Cash and cash equivalents at end of the year	145.1	235.3

Consolidated income statement
for the year ended 31 December 2021
		Underlying*	Other items**	Total	Underlying*	Other items**	Total
					Restated	Restated	Restated
		2021	2021	2021	2020	2020	2020
	Note	£m	£m	£m	£m	£m	£m
Continuing operations
Revenue	2	2,291.4	-	2,291.4	1,872.7	1.8	1,874.5
Cost of sales		(1,689.3)	-	(1,689.3)	(1,402.7)	(1.3)	(1,404.0)
Gross profit		602.1	-	602.1	470.0	0.5	470.5
Other operating expenses	3	(560.7)	(27.4)	(588.1)	(523.1)	(107.4)	(630.5)
Operating profit/(loss)		41.4	(27.4)	14.0	(53.1)	(106.9)	(160.0)
Finance income		0.7	-	0.7	0.7	-	0.7
Finance costs		(22.8)	(7.8)	(30.6)	(23.7)	(11.6)	(35.3)
Profit/(loss) before tax from continuing operations		19.3	(35.2)	(15.9)	(76.1)	(118.5)	(194.6)
Income tax (expense)/credit	4	(15.6)	3.2	(12.4)	(10.7)	4.1	(6.6)
Profit/(loss) after tax from continuing operations		3.7	(32.0)	(28.3)	(86.8)	(114.4)	(201.2)

Discontinued operations
Profit after tax from discontinued operations	11	-	-	-	-	69.7	69.7
Profit/(loss) after tax for the year		3.7	(32.0)	(28.3)	(86.8)	(44.7)	(131.5)

Attributable to:
Equity holders of the Company		3.7	(32.0)	(28.3)	(86.8)	(44.7)	(131.5)
Loss per share
From continuing operations: Basic	5			(2.4)p			(23.1)p
Diluted	5			(2.4)p			(23.1)p
Total:
Basic	5			(2.4)p			(15.1)p
Diluted	5			(2.4)p			(15.1)p

* Underlying represents the results before Other items. ** Other items have been disclosed separately in order to give an indication of the underlying earnings of the Group. Further details are disclosed in Note 3. The 2020 results have been restated as disclosed in Note 1.

Consolidated statement of comprehensive income
for the year ended 31 December 2021
	2021	Restated 2020
	£m	£m
Loss after tax for the year	(28.3)	(131.5)
Items that will not subsequently be reclassified to the Consolidated Income Statement:
Remeasurement of defined benefit pension liability	9.1	(1.7)
Deferred tax movement associated with remeasurement of defined benefit pension liability	0.1	0.3
Current tax movement associated with remeasurement of defined benefit pension liability	-	0.4
	9.2	(1.0)
Items that may subsequently be reclassified to the Consolidated income statement:
Exchange difference on retranslation of foreign currency goodwill and intangibles	(3.7)	5.1
Exchange difference on retranslation of foreign currency net investments (excluding goodwill and intangibles)	(10.7)	13.2
Exchange and fair value movements associated with borrowings and derivative financial instruments	8.6	(11.0)
Tax credit on fair value movements arising on borrowings and derivative financial instruments	-	-
Exchange differences reclassified to the Consolidated income statement in respect of the disposal of foreign operations	-	(5.9)
Gains and losses on cash flow hedges	0.7	(0.5)
Transfer to profit and loss on cash flow hedges	(3.1)	(0.7)
	(8.2)	0.2
Other comprehensive income/(expense)	1.0	(0.8)
Total comprehensive expense	(27.3)	(132.3)
Attributable to:
Equity holders of the Company	(27.3)	(132.3)
	(27.3)	(132.3)

Consolidated balance sheet
as at 31 December 2021
	2021	Restated 2020	Restated 1 January 2020
	£m	£m	£m
Non-current assets
Property, plant and equipment	66.9	63.2	58.6
Right-of-use assets	230.9	229.6	255.2
Goodwill	120.1	128.8	159.0
Intangible assets	16.7	18.5	30.2
Lease receivables	2.9	3.6	4.4
Deferred tax assets	4.8	5.7	4.4
Derivative financial instruments	-	0.1	1.7
	442.3	449.5	513.5
Current assets
Inventories	242.0	170.3	156.5
Lease receivables	0.8	0.7	0.8
Trade and other receivables	371.3	294.4	294.7
Current tax assets	-	-	0.9
Derivative financial instruments	0.2	-	0.9
Cash at bank and on hand	145.1	235.3	110.0
Assets classified as held for sale	-	-	258.4
	759.4	700.7	822.2
Total assets	1,201.7	1,150.2	1,335.7
Current liabilities
Trade and other payables	369.7	301.4	327.4
Lease liabilities	50.7	50.6	51.5
Interest-bearing loans and borrowings	-	-	275.1
Deferred consideration	1.1	0.5	-
Other financial liabilities	0.4	0.5	1.5
Derivative financial instruments	0.5	0.5	0.2
Current tax liabilities	4.6	4.2	3.7
Provisions	12.9	10.5	6.7
Liabilities directly associated with assets classified as held for sale	-	-	115.7
	439.9	368.2	781.8
Non-current liabilities
Lease liabilities	210.4	211.6	224.1
Interest-bearing loans and borrowings	249.6	212.2	-
Deferred consideration	0.7	0.4	-
Derivative financial instruments	-	0.4	1.9
Other financial liabilities	0.6	1.2	1.4
Other payables	3.8	3.5	1.0
Retirement benefit obligations	10.7	25.1	24.8
Provisions	21.3	25.7	18.6
	497.1	480.1	271.8
Total liabilities	937.0	848.3	1,053.6
Net assets	264.7	301.9	282.1
Capital and reserves
Called up share capital	118.2	118.2	59.2
Share premium account	-	447.7	447.3
Treasury shares	(12.5)	(0.2)	-
Capital redemption reserve	0.3	0.3	0.3
Share option reserve	4.4	2.0	1.8
Hedging and translation reserves	2.4	10.5	10.2
Cost of hedging reserve	0.1	0.2	0.3
Merger reserve	92.5	92.5	-
Retained profits/(losses)	59.3	(369.3)	(237.0)
Attributable to equity holders of the Company	264.7	301.9	282.1
Total equity	264.7	301.9	282.1

Consolidated statement of changes in equity
for the year ended 31 December 2021
	Called up share capital	Share premium account	Treasury shares reserve	Capital redemption reserve	Share option reserve	Hedging and translation reserves	Cost of hedging reserve	Merger reserve	Retained profits/ (losses)	Total
	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
At 1 January 2020 (restated)	59.2	447.3	-	0.3	1.8	10.2	0.3	-	(237.0)	282.1
Loss after tax (restated)	-	-	-	-	-	-	-	-	(131.5)	(131.5)
Other comprehensive income/(expense)	-	-	-	-	-	0.3	(0.1)	-	(1.0)	(0.8)
Total comprehensive income/(expense)	-	-	-	-	-	0.3	(0.1)	-	(132.5)	(132.3)
Issue of share capital	59.0	0.4	-	-	-	-	-	92.5	-	151.9
Transfer of unallocated treasury shares	-	-	(0.2)	-	-	-	-	-	0.2	-
Credit to share option reserve	-	-	-	-	0.2	-	-	-	-	0.2
At 31 December 2020 (restated)	118.2	447.7	(0.2)	0.3	2.0	10.5	0.2	92.5	(369.3)	301.9
Loss after tax	-	-	-	-	-	-	-	-	(28.3)	(28.3)
Other comprehensive (expense)/income	-	-	-	-	-	(8.1)	(0.1)	-	9.2	1.0
Total comprehensive (expense)/income	-	-	-	-	-	(8.1)	(0.1)	-	(19.1)	(27.3)
Purchase of treasury shares	-	-	(12.3)	-	-	-	-	-	-	(12.3)
Credit to share option reserve	-	-	-	-	2.6	-	-	-	-	2.6
Settlement of share options	-	-	-	-	(0.2)	-	-	-	-	(0.2)
Capital reduction	-	(447.7)	-	-	-	-	-	-	447.7	-
At 31 December 2021	118.2	-	(12.5)	0.3	4.4	2.4	0.1	92.5	59.3	264.7

Consolidated cash flow statement
for the year ended 31 December 2021
		2021	Restated 2020
	Note	£m	£m
Net cash flow from operating activities
Cash generated from/(used in) operating activities	6	7.4	(50.5)
Income tax paid		(10.4)	(9.7)
Net cash used in operating activities		(3.0)	(60.2)
Cash flows from investing activities
Finance income received		0.7	0.7
Purchase of property, plant and equipment and computer software		(18.6)	(13.3)
Proceeds from sale of property, plant and equipment		2.7	5.6
Net cash flow on the purchase of businesses		(10.1)	(0.8)
Settlement of amounts payable for previous purchases of businesses		(0.5)	-
Net cash flow arising on the sale of businesses	10	-	147.8
Net cash flow from investing activities		(25.8)	140.0
Cash flows from financing activities
Finance costs paid¹		(36.3)	(23.3)
Repayment of lease liabilities		(57.3)	(54.8)
Repayment of borrowings		(200.3)	(55.1)
Proceeds from borrowings		251.5	-
Repayment of revolving credit facility²		-	(30.0)
Settlement of derivative financial instruments		0.8	(0.1)
Acquisition of treasury shares		(12.3)	-
Net proceeds from equity raise		-	151.9
Net cash flow from financing activities		(53.9)	(11.4)
(Decrease)/increase in cash and cash equivalents in the year		(82.7)	68.4
Cash and cash equivalents at beginning of the year		235.3	145.1
Effect of foreign exchange rate changes		(7.5)	21.8
Cash and cash equivalents at end of the year³		145.1	235.3

¹ Finance costs paid in the current year includes £12.9m make-whole payment in connection with the refinancing during the year. ² As part of the changes to the debt facility agreements on 18 June 2020, £70.0m drawn under the existing revolving credit facility was converted into a £70.0m term facility, with no additional repayment or drawdown made. ³ Cash and cash equivalents comprise cash at bank and on hand of £145.1m (2020: £235.3m) less bank overdrafts of £nil (2020: £nil). Cash and cash equivalents at 1 January 2020 include £110.0m from continuing operations and £35.1m from businesses held for sale. The 2020 cash flow statement has been restated as disclosed in Note 1.

Increase/(decrease) in profit/(loss)	31 December 2020 £m
Other underlying operating expenses	(0.4)
Amortisation of computer software	0.6
Underlying operating profit	0.2
Impairment charges	14.6
Cloud computing configuration and customisation costs	(7.1)
Other items	7.5
Operating loss	7.7
Loss before and after tax from continuing operations	7.7

Segmental Information
In accordance with IFRS 8 "Operating Segments", the Group identifies its reportable operating segments based on the way in which financial information is reviewed and business performance is assessed by the Chief Operating Decision Maker "CODM.

a) Segmental analysis
	UK Interiors	UK Exteriors	Total UK	France Interiors	France Exteriors	Total France	Germany	Benelux	Ireland	Poland	Eliminations	Total Group
2021	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m

Revenue
Underlying revenue	507.4	422.2	929.6	195.3	406.0	601.3	393.2	92.4	88.2	186.7	-	2,291.4
Revenue attributable to businesses identified as non-core	-	-	-	-	-	-	-	-	-	-	-	-
Inter-segment revenue^	3.4	0.6	4.0	0.1	11.6	11.7	-	-	0.1	-	(15.8)	-
Total revenue	510.8	422.8	933.6	195.4	417.6	613.0	393.2	92.4	88.3	186.7	(15.8)	2,291.4

Segment result before Other items	(2.5)	25.0	22.5	11.2	17.4	28.6	3.6	(4.9)	2.8	6.3	-	58.9
Amortisation of acquired intangibles	(0.3)	(4.0)	(4.3)	-	(0.4)	(0.4)	-	-	-	-	-	(4.7)
Impairment charges	(0.3)	-	(0.3)	-	-	-	-	(9.9)	-	-	-	(10.2)
Acquisition costs	(1.5)	-	(1.5)	-	-	-	-	-	-	-	-	(1.5)
Cloud computing customisation and configuration costs	(0.6)	(0.5)	(1.1)	-	(0.8)	(0.8)	(0.8)	(0.6)	-	-	-	(3.3)
Net restructuring costs	0.1	(0.6)	(0.5)	-	-	-	(1.4)	(0.4)	-	-	-	(2.3)
Segment operating (loss)/profit	(5.1)	19.9	14.8	11.2	16.2	27.4	1.4	(15.8)	2.8	6.3	-	36.9
Parent Company costs												(17.5)
Parent Company Other items*												(5.4)
Operating profit												14.0
Net finance costs before Other items												(22.1)
Non-underlying finance costs												(7.8)
Loss before tax												(15.9)
Income tax expense												(12.4)
Loss for the year												(28.3)

Revenue
	UK Interiors	UK Exteriors	Total UK	France Interiors	France Exteriors	Total France	Germany	Benelux	Ireland	Poland	Eliminations	Total Group
2020 (Restated)	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m	£m
Type of product
Interiors	357.4	-	357.4	168.1	-	168.1	370.7	91.6	46.3	149.5	-	1,183.6
Exteriors	-	310.1	310.1	-	344.8	344.8	-	-	34.2	-	-	689.1
Inter-segment revenue^	1.5	0.5	2.0	0.9	7.6	8.5	0.1	0.1	0.1	-	(10.8)	-
Total underlying revenue	358.9	310.6	669.5	169.0	352.4	521.4	370.8	91.7	80.6	149.5	(10.8)	1,872.7
Revenue attributable to businesses identified as non-core	-	-	-	-	1.8	1.8	-	-	-	-	-	1.8
Total	358.9	310.6	669.5	169.0	354.2	523.2	370.8	91.7	80.6	149.5	(10.8)	1,874.5
Nature and timing of revenue
Goods for resale (recognised at point in time)	358.9	310.6	669.5	169.0	354.2	523.2	370.8	91.7	75.2	149.5	(10.8)	1,869.1
Construction contracts (recognised over time)	-	-	-	-	-	-	-	-	5.4	-	-	5.4
Total	358.9	310.6	669.5	169.0	354.2	523.2	370.8	91.7	80.6	149.5	(10.8)	1,874.5

	% ordinary share capital acquired	Acquisition date	Country of incorporation	Principal Activity
F30 Building Products Limited	100%	10 March 2021	United Kingdom	Distributor of construction accessories
Penlaw and Company Limited	100%	26 October 2021	United Kingdom	Distributor of interiors and insulation products
Penlaw Northwest Limited	100%	26 October 2021	United Kingdom	Distributor of interiors and insulation products
Penlaw Norfolk Limited	100%	26 October 2021	United Kingdom	Distributor of interiors and insulation products
Penlaw Fixings Limited	100%	26 October 2021	United Kingdom	Distributor of interiors and insulation products



b) Geographic information
The Group's non-current operating assets (including property, plant and equipment, right-of-use assets, goodwill and intangible assets but excluding lease receivables, deferred tax and derivative financial instruments) by geographical location are as follows:
	2021	Restated 2020
Country	£m	£m
United Kingdom	228.7	217.6
Ireland	13.1	14.6
France	108.3	113.4
Germany	49.8	59.5
Poland	12.0	13.4
Benelux	22.7	21.6
Total	434.6	440.1

3. Other operating expenses
3a. Analysis of other operating expenses
	2021			2020 (restated)
	Before Other items	Other items	Total	Before Other items	Other items	Total
	£m	£m	£m	£m	£m	£m
Other operating expenses:
Distribution costs	282.2	3.7	285.9	261.2	8.0	269.2
Selling and marketing costs	158.0	1.0	159.0	138.8	1.4	140.2
Management, administrative and central costs	120.5	22.7	143.2	123.3	98.2	221.5
Property profits	-	-	-	(0.2)	(0.2)	(0.4)
Total	560.7	27.4	588.1	523.1	107.4	630.5

3b. Other items
Profit/(loss) after tax includes the following Other items which have been disclosed in a separate column within the Consolidated Income Statement in order to provide a better indication of the underlying earnings of the Group:
	2021			2020 (restated)
	Other items	Tax impact	Tax impact	Other items	Tax impact	Tax impact
	£m	£m	%	£m	£m	%
Amortisation of acquired intangibles	(4.7)	0.2	4.3%	(5.6)	1.1	19.6%
Impairment charges¹	(10.2)	-	-	(61.5)	-	-
Net restructuring costs²	(3.7)	0.5	13.5%	(6.7)	1.0	14.9%
Onerous contract costs³	(2.0)	-	-	(13.2)	0.3	2.3%
Cloud computing configuration and customisation costs⁴	(3.3)	0.5	15.2%	(7.1)	-	-
Costs related to acquisitions	(1.5)	-	-	(0.2)
Costs associated with refinancing⁵	(2.4)	0.5	20.8%	(7.4)	1.4	18.9%
Profits and losses on agreed sale or closure of non-core businesses	-	-	-	0.6	-	-
Net operating losses attributable to businesses identified as non-core	-	-	-	(0.3)	-	-
Investment in omnichannel retailing	-	-	-	(4.2)	-	-
Other specific items⁶	0.4	-	-	(1.3)	0.2	15.4%
Impact on operating profit/(loss)	(27.4)	1.7	6.2%	(106.9)	4.0	3.7%
Non-underlying finance costs⁷	(7.8)	1.5	19.2%	(11.6)	0.1	0.9%
Impact on profit/(loss) before tax	(35.2)	3.2	9.1%	(118.5)	4.1	3.5%

¹ Impairment charges comprises £9.9m relating to goodwill and £0.3m relating to additional impairment of an investment property. Impairment charges in the prior year comprised £45.4m related to goodwill, £1.9m customer relationships in intangibles, £0.5m other software costs, £3.5m tangible fixed assets and £10.2m right-of-use assets. The prior year numbers have been restated to remove £14.6m impairment of software due to the change in accounting policy relating to configuration and customisation costs in cloud computing arrangements. See Note 1 for further details. ² Net restructuring costs include property closure costs of £1.2m (2020: £0.8m), redundancy and related staff costs of £2.4m (2020: £2.8m), restructuring consultancy costs of £0.1m (2020: £2.9m) and other costs of £nil (2020: £0.2m). These costs have been incurred principally in connection with the restructuring of corporate functions as part of the implementation of the Return to Growth strategy, and restructuring in Germany and Benelux. ³ Onerous contract costs includes £2.0m (2020: £11.4m) relating to provisions recognised for licence fee commitments where no future economic benefit is expected to be obtained, principally in relation to the SAP 1HANA implementation together with £nil (2020: £1.8m) licence fees recognised in the Consolidated income statement during the year whilst the project was on hold. ⁴ Cloud computing configuration and customisation costs relate to costs incurred on strategic projects involving software as a service arrangements which are expensed as incurred rather than being capitalised as intangible assets. Prior year amounts have been restated to include these costs as a result of the change in accounting policy during the year. See Note 1 for further details. ⁵ Costs associated with refinancing includes legal and professional fees of £4.9m (2020: £8.3m) offset by a £2.5m (2020: £0.9m) gain in relation to the termination of the cash flow hedging arrangements as a result of the refinancing. ⁶ Other specific items of £0.4m credit in 2021 relates principally to the transfer from cash flow hedging reserve to profit and loss in relation to the cash flow hedging arrangements on the private placement notes following partial repayment in 2020. The prior year amount included PwC investigation costs £1.8m and GMP equalisation costs £0.4m, offset by £0.6m gain on fair value of a forward currency option not hedged, £0.1m costs in relation to the cyber attack in France and £0.2m other specific items. ⁷ Non-underlying finance costs comprise a £12.9m make-whole payment on settlement of the private placement notes, £2.8m write-off of arrangement fees in relation to the previous debt arrangements, offset by £8.0m release of the loss on modification recognised on amendment of the private placement notes in 2020, together with £0.1m unwinding of the discount on the onerous contract provision. Costs in 2020 comprised £11.3m loss on modification recognised in relation to the private placement notes and £0.3m write-off of arrangement fees in relation to the previous RCF which was extinguished during 2020.

The income tax expense comprises:
		2021	2020
		£m	£m
Current tax
UK & Ireland corporation tax:	- charge for the year	0.3	0.5
	- adjustments in respect of previous years	-	-
		0.3	0.5
Mainland Europe corporation tax	- charge for the year	10.6	5.6
	- adjustments in respect of previous years	2.0	(0.1)
		12.6	5.5
Total current tax		12.9	6.0

Deferred tax
Current year credit		(1.1)	(2.2)
Adjustments in respect of previous years		0.6	2.6
Deferred tax charge in respect of pension schemes		(0.1)	-
Effect of change in rate		0.1	0.2
Total deferred tax		(0.5)	0.6
Total income tax expense		12.4	6.6

As the Group's profits and losses are earned across a number of tax jurisdictions an aggregated income tax reconciliation is disclosed, reflecting the applicable rates for the countries in which the Group operates.
The total tax charge for the year differs from the expected tax using a weighted average tax rate which reflects the applicable statutory corporate tax rates on the accounting profits/losses in the countries in which the Group operates. The differences are explained in the following aggregated reconciliation of the income tax expense:

	2021		Restated 2020
	£m	%	£m		%
Loss before tax from continuing operations	(15.9)		(194.6)
Profit before tax from discontinued operations	-		72.0
Loss before tax	(15.9)		(122.6)
Expected tax credit	(1.5)	9.4%	(13.4)		10.9%
Factors affecting the income tax expense for the year:
Expenses not deductible for tax purposes^	4.5	(25.8)%	19.6		(16.0)%
Non-taxable income*	(0.1)	0.6%	(33.2)		27.1%
Impairment and disposal charges not deductible for tax purposes**	1.4	(8.8)%	15.1		(12.3)%
Deductible temporary differences not recognised for deferred tax purposes	5.4	(34.0)%	18.1		(14.8)%
Losses utilised not previously recognised for deferred tax purposes	-
Other adjustments in respect of previous years	2.6	(16.4)%	2.5		(2.0)%
Effect of change in rate on deferred tax	0.1	(0.6)%	0.2		(0.2)%
Total income tax expense	12.4	(78.0)%	8.9		(7.3)%
Income tax expense reported in the consolidated income statement	12.4		6.6
Income tax attributable to a discontinued operation	-		2.3
	12.4		8.9
^ The majority of the Group's expenses that are not deductible for tax purposes are in relation to internal restructuring and impairments of property in 2021 and 2020, and the divestments of businesses in 2020.
* The majority of the Group's non-taxable income in 2020 relates to the divestments of businesses.
** During the year the Group incurred impairment charges of £9.9m (2020: £45.4m) in relation to goodwill which are not deductible for tax purposes.
The effective tax rate for the Group on the total loss before tax of £15.9m (2020 restated: £122.6m) is negative 78.0% (2020 restated: negative 7.3%). As the Group operates in several different countries tax losses cannot be surrendered or utilised cross border. Tax losses are not currently recognised in respect of the UK business, which has the effect of reducing the overall effective tax rate.

Factors that will affect the Group's future total tax charge as a percentage of underlying profits are:
- the mix of profits and losses between the tax jurisdictions in which the Group operates;
- the impact of non-deductible expenditure and non-taxable income;
- agreement of open tax computations with the respective tax authorities; and
- the recognition or utilisation (with corresponding reduction in cash tax payments) of unrecognised deferred tax assets.

The Group has previously disclosed the EU's investigation into the UK controlled foreign company (CFC) rules which gave rise to potential additional tax payable of up to £5m (before interest and penalties), which was not provided for. HMRC has now completed its review of the Group's tax arrangements for the periods in question and confirmed that they complied with the requirements of the UK CFC legislation and that it considers that the Group's arrangements did not result in unlawful State Aid. Accordingly, HMRC has accepted the Group's tax returns as submitted and there is no longer a potential exposure or payment to be made.

In addition to the amounts charged to the Consolidated income statement, the following amounts in relation to taxes have been recognised in the Consolidated statement of comprehensive income, with the exception of deferred tax on share options which has been recognised in the Consolidated statement of changes in equity:
				2021		2020
				£m		£m
Deferred tax movement associated with re-measurement of defined benefit pension liabilities*				(0.1)		0.3
Tax credit associated with re-measurement of defined benefit pension liabilities*				-		0.4
Total				(0.1)		0.7
* These items will not subsequently be reclassified to the Consolidated income statement.

	Basic and diluted
	2021	Restated 2020
	£m	£m
Loss attributable to ordinary equity holders of the parent for basic and diluted earnings per share from continuing operations	(28.3)	(201.2)
Profit attributable to ordinary equity holders of the parent from discontinued operations	-	69.7
Loss attributable to ordinary equity holders of the parent for basic and diluted earnings per share	(28.3)	(131.5)

	Basic and diluted before Other items
	2021	Restated 2020
	£m	£m
Loss attributable to ordinary equity holders of the parent for basic and diluted earnings per share from continuing operations	(28.3)	(201.2)
Add back:
Other items	32.0	114.4
Profit/(loss) attributable to ordinary equity holders of the parent for basic and diluted earnings per share from continuing operations before other items	3.7	(86.8)

	2021	Restated 2020
Weighted average number of shares	Number	Number
For basic and diluted (loss)/earnings per share	1,177,972,694	871,941,603
Effect of dilution from share options	-	-
Adjusted for the effect of dilution	1,177,972,694	871,941,603

	2021	2020
Loss per share
From continuing operations:
Basic loss per share	(2.4)p	(23.1)p
Diluted loss per share	(2.4)p	(23.1)p
Total:
Basic loss per share	(2.4)p	(15.1)p
Diluted loss per share	(2.4)p	(15.1)p
Earnings/(loss) per share before Other items^
Basic earnings/(loss) per share from continuing operations before Other items	0.3p	(10.0)p

	Penlaw Group	F30 Building Products	2021 Total	2020 Total
	£m	£m	£m	£m
Assets
Intangible assets (customer relationships)	3.2	1.8	5.0	0.8
Property, plant and equipment	1.4	0.1	1.5	0.1
Right-of-use assets	7.2	0.3	7.5	0.2
Cash and cash equivalents	2.0	0.2	2.2	3.2
Trade and other receivables	20.6	1.1	21.7	0.7
Inventories	3.1	0.2	3.3	0.4
	37.5	3.7	41.2	5.4
Liabilities
Trade and other payables	(20.8)	(1.3)	(22.1)	(0.8)
Provisions	(0.6)	(0.1)	(0.7)	(0.2)
Current tax liability	(0.1)	(0.1)	(0.2)	(0.2)
Deferred tax liability	(0.9)	(0.4)	(1.3)	(0.1)
Lease liabilities	(7.2)	(0.3)	(7.5)	(0.2)
	(29.6)	(2.2)	(31.8)	(1.5)
Total identifiable net assets at fair value	7.9	1.5	9.4	3.9
Goodwill arising on acquisition	2.7	2.1	4.8	1.0
Purchase consideration transferred	10.6	3.6	14.2	4.9

	2020
	Air Handling	Other non-core businesses	Total
	£m	£m	£m
Cash consideration received for divestments	189.7	0.7	190.4
Cash at date of disposal	(29.2)	(0.2)	(29.4)
Disposal costs paid	(12.9)	(0.3)	(13.2)
Net cash inflow	147.6	0.2	147.8

		2020
		£m
Revenue		25.4
Cost of sales		(15.0)
Gross profit		10.4
Other operating expenses		(9.3)
Operating profit		1.1
Finance costs		(0.1)
Profit before tax from discontinuing operations		1.0
Income tax expense		(0.3)
Profit after tax from discontinued operations		0.7
Gain on sale of subsidiary after income tax (see below)		69.0
Profit from discontinued operation		69.7


		2020
		£m
Operating		1.1
Investing		147.6
Financing		-
Net cash inflow		148.7


Earnings per share:
		2020
Basic earnings per share from discontinued operations		8.0p
Diluted earnings per share from discontinued operations		8.0p

Gain on sale
		2020
		£m
Consideration received¹:
Cash		191.9
Adjustment to consideration		(2.2)
Final consideration		189.7
Carrying amount of net assets sold²		(118.1)
Gain on sale before costs, income tax and reclassification of foreign currency translation reserve		71.6
Costs incurred in connection with the agreed disposal of the Air Handling business³		(4.3)
Reclassification of foreign currency translation reserve		3.7
Income tax expense on gain		(2.0)
Gain on sale after income tax		69.0

Transactions between the Company and its subsidiaries, which are related parties, have been eliminated on consolidation and have therefore not been disclosed.
In 2021, SIG incurred expenses of £0.6m (2020: £0.5m) on behalf of the SIG plc Retirement Benefits Plan, the UK defined benefit pension scheme.

Remuneration of key management personnel
The total remuneration of key management personnel of the Group, being the Executive Leadership Team members and the Non-Executive Directors is set out below in aggregate for each of the categories specified in IAS 24 "Related Party Disclosures".
	2021	2020
	£m	£m
Short term employee benefits	6.7	5.8
Termination and post-employment benefits	-	0.1
IFRS 2 share option charge	1.5	-
	8.2	5.9

	2021	2020
	£m	£m
Reported net debt	365.0	238.2
Lease liabilities recognised in accordance with IFRS 16	(239.1)	(237.0)
Lease receivables recognised in accordance with IFRS 16	3.7	4.3
Other financial liabilities recognised in accordance with IFRS 16	(1.0)	(1.4)
Net debt excluding the impact of IFRS 16	128.6	4.1