Future prospects improving for SIG

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SIG, the Sheffield-based insulation and specialist construction products group, is predicting a return to paying dividends this year, despite an increase in pre-tax losses from £55.3 million in 2009 to £80.8 million.

Revenue fell by two percent to £2,668 million, while underlying pre-tax profits were up three per cent at £62.5 million.

Chairman, Leslie Van de Walle, said: “Trading in the first two months of 2011 was in line with management’s expectations and well ahead of the particularly weak, weather-affected comparative sales levels of last year.

“While maintaining a firm control on operating costs and working capital, the Group will continue to make carefully selected organic investments, notably in the area of renewables and carbon reduction, and in further controlled expansion of its branch network in both the UK and Mainland Europe.

“The Board believes that SIG is well positioned to make progress through 2011.”

Chief executive Chris Davies said SIG had completed its major restructuring plans while continuing to invest selectively in organic developments in core markets.

“Our focus on cash management will continue, and with a healthy balance sheet and the recent refinancing of our bank debt we are in a strong financial position,” said Mr Davies.