14 January 2016
SIG plc
(“SIG” or “the Group”)
Trading Update
SIG plc, a leading distributor of specialist building products in Europe, with strong positions in its core markets of insulation & energy management, interior fit out and roofing products, today issues a Trading Update for the twelve months ended 31 December 2015.
2015 Group sales from continuing operations were c.£2,565m, an increase of 3.6% in constant currency and down 1.4% in Sterling having been adversely affected by foreign exchange movements. With acquisitions contributing 3.4% to sales growth, the Group’s like-for-like1 (“LFL”) revenues in 2015 increased marginally, by 0.2%.
In line with previous guidance the Group continues to expect that gross margin will be flat year-on-year. It also anticipates that underlying profit before tax for 2015 will be within its previously stated £85m to £90m range.
|
Change in sales |
UK & Ireland |
Mainland Europe |
Group |
|
Q4 (Oct – Dec) |
|||
|
LFL1 |
(1.0)% |
1.8% |
0.4% |
|
Continuing operations2 |
5.6% |
(3.4)% |
1.2% |
|
2015 |
|||
|
LFL |
1.2% |
(0.9)% |
0.2% |
|
Continuing operations |
5.6% |
(8.9)% |
(1.4)% |
1 sales per day in constant currency excluding acquisitions and disposals.
2 reported sales excluding disposals.
In the UK & Ireland LFL sales decreased 1.0% in Q4 2015 compared to the same period last year, with trading conditions in the UK Repairs, Maintenance and Improvement market remaining challenging, particularly impacting the Group’s Exteriors business, which recorded a LFL sales decline of 5.9% in the quarter.
In Mainland Europe, LFL sales increased 1.8% in Q4 2015 mainly due to a significantly improved performance in France, where LFL sales were ahead 2.5% compared to a decline of 6.6% in Q3 2015. Germany however remains challenging, with LFLs down 3.1% in Q4 2015.
The Group’s year-end leverage is expected to be c.1.8x following net acquisition cash expenditure of c.£75m. Going forward SIG is aiming to return leverage to c.1.5x by slowing the pace of acquisitions and moderating capital expenditure.
Conference call
There will be a conference call at 8.00am this morning to discuss today’s statement with the SIG management team. The dial in number is 0808 237 0030, PIN 17243697#. A replay of the call will be available on 0808 237 0026, PIN 665640#.
Full year results
SIG will announce its Full Year results for the year ended 31 December 2015 on 9 March 2016