Challenging trading conditions hit SIG

editorial image
Share this article
Have your say

Challenging trading conditions in the repairs, maintenance and improvement market have hit sales at building products distributor SIG.

The Sheffield-based group’s exteriors business, which sells roofing products, was hardest hit.

In a trading update SIG confirmed that sales at the exteriors division in UK and Ireland fell 5.9 per cent in the final quarter of 2015. In mainland Europe, like-for-like sales increased 1.8 per cent mainly due to a significantly improved performance in France, where like-for-like sales were ahead 2.5 per cent compared to a decline of 6.6 per cent in the previous quarter.

Germany however remains challenging, SIG said, with like-for-like sales down 3.1 per cent in the final quarter.

In line with previous guidance SIG says it continues to expect that gross margin will be flat year-on-year. The firm is also anticipating underlying pre-tax profit for 2015 to be within its previously stated £85m to £90m range.