SIG warms to record profits

SIG, the Sheffield-based insulating materials and construction products group, has increased its interim dividend by almost 30 per cent after announcing record profits and acquisitions for the six months to the end of June.

By The Newsroom
Thursday, 13th September 2007, 10:38 am
Updated Thursday, 13th September 2007, 12:45 pm

Sales for the six months broke the 1 billion barrier for the first time in SIG’s history and pre-tax profits rose by 31 per cent to 62.1 million.

Meanwhile, SIG has bought 22 companies with 136 trading sites and annual sales totalling 424 million for 312 million so far this year.

The group, Europe’s leading specialist supplier of insulation, roofing, commercial interiors and specialist construction products, increased its interim dividend by 29 per cent to 8p a share.

Chairman Les Tench said:“The Group has achieved excellent progress in the first six months, with strong like for like increases in all countries and business streams and a step-change in the breadth of the Group’s activities with a total of 146 branches added so far in 2007.

“The interim dividend is being increased by 29 per cent, an indication of our confidence in the future prospects for SIG.”

SIG, which this week moved its headquarters from Hillsborough to a purpose built office on Sheffield Business Park, says it has seen the first benefits of new, higher insulation standards in the UK.

It also expects to see an increase in the upgrading of insulation in the UK thanks to the introduction of the new Carbon Emission Reduction Targets (CERT) grant scheme.

SIG has its own installation business, based at Chapeltown, and hundreds of teams across the country, making it a big player when it comes to installing loft and cavity wall insulation in existing homes, so the Government’s decision to double the target for upgrading the insulation in existing homes is good news for the company.

So, too, is the Government’s decision to increase the target for new homes from 200,000 to 240,000 a year.

“Latest statistics show 205,000 new households a year are being created in Britain and we are probably building around 165,000 new homes a year, which is woefully short of what the country needs,” says SIG’s chief executive, David Williams.