Operational & financial update & FY19 Results Date
30 April 2020
SIG plc
(Incorporated in England and Wales)
Company Number: 00998314
LSE Share Code: SHI
ISIN: GB0008025412
LEI: 213800VDC1BKJEZ8PV53
SIG PLC
Operational and financial update and 2019 Full Year Results announcement date
SIG plc ("SIG", the "Group" or "Company"), a leading supplier of specialist building materials to trade customers across Europe, with strong positions in its core markets as a specialist distributor of insulation and interior products and a merchant of roofing and exteriors products, provides the following update.
Re-opening of UK trading sites
On 30 March 2020 the Group announced the temporary closure of the majority of its UK operations. This included all locations across our Distribution and Roofing businesses, except for six sites in Edinburgh, Manchester, Birmingham, Bristol, Rayleigh and London. From these sites we were able to serve critical and emergency projects for the NHS, and across the energy and food sectors in the UK.
Throughout this time, the Group remained committed to preserving the safety of its employees, customers and suppliers. Where operations continued, Government guidelines were strictly observed to ensure adherence to social distancing, cleaning and hygiene standards.
In the last week, as demand started to increase across the industry, the Group has commenced re-opening selected sites across its Distribution and Roofing businesses to provide greater support to our customers and offer increased access to our products and services. 15 sites are now open across our Distribution business and 20 sites are open across our Roofing business. The Group is currently planning for the majority of its sites to be open by mid-May.
In preparation for the lifting of UK Government restrictions, we are regularly reviewing operations and considering the measures we will require to ensure the safe return of our employees and a return to fully operational businesses across the UK.
Europe update
In France, all our sites are open and trading has gradually increased during April as French Government guidelines have encouraged more of our customers to resume trade.
We have remained open in most of our other countries of operation and trading has continued on a near-to-normal basis in Germany, Holland and Poland, all within local government guidelines in each country.
In Ireland we have followed strict Government instructions and remain closed, except for a small number of sites supporting critical and emergency projects. As in the UK, we are currently planning for the majority of Irish sites to be open by mid-May.
Cost saving measures
SIG has taken decisive actions to manage its operating cost base. With the temporary closure of operations in the UK and Ireland, the Group has accessed the UK Government's Coronavirus Job Retention Scheme and furloughed approximately 2,000 employees across its sites and support functions.
It was announced on 30 March 2020 that, as a temporary measure from 1 April 2020, the Board of Directors would take a pay reduction of 50% and the Group Executive Leadership Team a pay reduction of 20%. Additionally, the majority of our UK and Ireland employees are currently temporarily taking lower pay until the UK and Irish businesses reopen.
The Group also took definitive action to eliminate discretionary spend, whilst ensuring the business adapted to new, flexible ways of working with increased remote technology measures implemented to facilitate communication with employees, customers and suppliers.
Liquidity
As a result of strengthened cash control measures, the Group has been able to preserve its liquidity position and, at the close of business on Friday 24 April 2020, it held cash of £142m. The Group remains in dialogue with its lending group in order to release additional liquidity as required.
In addition, SIG is making use of tax relief, as well as accessing other available government measures.
2019 Full Year Results announcement date and AGM
Following the recent joint regulatory guidance from the FCA, the FRC and the PRA regarding reporting timeframes, SIG confirms that it will publish its 2019 Full Year Results on 28 May 2020. The Company's Annual General Meeting will be held on 30 June 2020.
The Company confirms that there is no change to its guidance for underlying profit before tax for the year ended 31 December 2019 of c.£42 million*.
Enquiries
FTI Consulting
Richard Mountain +44 (0) 20 3727 1340
Note
* Underlying profit before tax stated before IFRS 16 adjustments, including profit before tax for the Air Handling Division and the Building Solutions business and excluding impairment and other non-underlying profits and losses.
Cautionary statement
This announcement is not intended to, and does not constitute, or form part of, any offer to sell or an invitation to purchase or subscribe for any securities or a solicitation of any vote or approval in any jurisdiction. The information contained in this announcement is not for release, publication or distribution to persons in any jurisdiction where to do so might constitute a violation of local securities laws or regulations.
This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact rns@lseg.com or visit www.rns.com.
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