Exchange rate boost for SIG

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The UK’s residential construction market is expected to remain buoyant, while commercial construction will remain subdued, says Sheffield Business Park-based SIG.

The leading European distributor of specialist building products says, in a trading update, that its total revenues rose by four per cent in sterling to around £2,720 million last year, thanks to favourable exchange rates.

Underlying profit before tax will be no less than the market consensus of £85.8 million, it adds.

SIG says trading improved as the year progressed, with like for like sales up by around 2.5 per cent in the second half, after a fall of 3.5 per cent in the first half, caused by adverse weather conditions.

The company says it identified around £9 million worth of savings in 2013 and realised around 40 per cent of them during the year.

SIG says the trading outlook, operational efficiency savings and an expected modest net benefit from its strategic initiatives give it confidence that it will achieve good progress in 2014.