Building supplier SIG’s profit more than doubles
Company which employs 250 people in Ireland, sees revenues dip
Specialist building products supplier SIG, which employs about 250 people over 11 locations in Ireland, has reported a pretax profit of £26.8 million for the first half of the year compared to £11.8 million a year earlier.
Revenues for the six months to the end of June fell by 2.7 per cent to £1.2 billion from £1.3 billion and the group recorded an operating profit of £33.6 million as against £19.1 million for the same period a year earlier.
In UK and Ireland, revenues from continuing operations increased 5.8 per cent to £679.2million as against £632.1 million last year with life-for-like sales up 2.1 per cent in the UK and 14.8 per cent in Ireland.
SIG said overall group sales increased by 3.1 per cent on a constant currency basis and by 0.6 per cent on a like-for-like basis.
Sales in mainland Europe from continuing operations decreased 11.3 per cent to £564.4million due to movements in foreign exchange rates.
Underlying operating profit declined 9.5 per cent to £44.6 million from £49.3 million, also due to fluctuating currency rates, while underlying operating margin declined 30 basis points to 3.6 per cent from 3.9 per cent.
Net debt at June 30th increased to £195.4 million compared to £131.5 million a year earlier.
An interim dividend of 1.69 pence is to be paid, up 19 per cent versus the same period last year.
SIG said it is targeting expenditure of around £200 million on infill acquisitions over the next two years. It acquired eight infill businesses for an initial consideration of £34 million during the first half of 2015.
“The group delivered a robust first half performance against a strong comparative period, supported by continued good progress on its strategic initiatives. This was despite variable trading conditions in mainland Europe, increasing competitive pressures and a significant weakening of the euro,” said chief executive Stuart Mitchell.
“Assuming the improving sales trend in mainland Europe continues we expect to make year-on-year progress, with results in the second half weighted as anticipated,” he added.
