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SIG reports first profit improvement in three years as Europe recovers, but UK still challenging

Meinie Oldersma, SIG's chief executive officer said: "As the Group moves into 2018, we are seeing increasingly confident markets across Mainland Europe and Ireland"
building products
But, she added: "In contrast, we are seeing an increasingly challenging environment in the UK created by macro uncertainty and recent events in the construction industry"

SIG PLC (LON:SHI) has reported its first improvement in underlying operating profit in three years, after stabilising the business following a disappointing 2016, although conditions in the UK remain very challenging.

The FTSE 250-listed specialist building products firm reported a 5.1 rise in underlying 2017 operating profit to £94.3mln, while underlying pretax profit increased by 4.3% to £79.2mln, as revenue rose by 7.4% to £2.7785bn.

READ: Numis cuts stance on insulation products firm SIG as it feels the stock is up with events

Meinie Oldersma, SIG's chief executive officer said: "As the Group moves into 2018, we are seeing increasingly confident markets across Mainland Europe and Ireland, but also the first signs of capacity and labour constraint in buoyant construction markets. 

"In contrast, we are seeing an increasingly challenging environment in the UK created by macro uncertainty and recent events in the construction industry."  

She added: "Notwithstanding this outlook, we see considerable potential for a significant improvement in operational and underlying financial performance, with execution largely within management's control, and we are working hard to ensure effective delivery."

SIG is paying a final dividend of 2.5p per share, hiking its total payout for 2017 to 3.75p, up from 3.66p in 2016.

In early morning trade, the company’s shares were 1% higher at 151.3p.

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Sig plc Timeline

Newswire
October 22 2015

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