SIG cuts dividend and names new CEO

A view of the City of London. SIG today announced that it is cutting its dividend by 20 per cent Photo: Jonathan Brady/PA Wire
A view of the City of London. SIG today announced that it is cutting its dividend by 20 per cent Photo: Jonathan Brady/PA Wire
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British building materials suppler SIG has cut its dividend by 20 per cent and named a new chief executive as it battles to recover from a November profit warning.

The group said Meinie Oldersma, currently head of industrial products distributor Brammer Ltd, would join as chief executive in April, bringing considerable experiencing in helping turn around and grow businesses across Europe.

The insulation, roofing and interior fittings firm said in November it would miss 2016 profit forecasts due to weak demand, tougher competition and delays to some projects after Britain’s vote to leave the European Union.

“Since November we have slowed or stopped a number of internal initiatives, which will allow our team to refocus on customers and sales growth in order to generate cash ... This will ensure that we build on SIG’s significant potential in 2017,” Interim CEO Mel Ewell said in a statement.

The company reported a 12.5 per cent fall in underlying pretax profit to £77.5m for the year ended December 31, in line with its previously stated range of £75m to £80m.

It cut the dividend to 3.66 pence per share from 4.60 pence in 2015.

SIG said trading in the first two months of 2017 had been in line with its expectations, though markets remained competitive and it was experiencing some supplier price inflation.