SIG PLC (LSE:SHI) tumbled 10% in early exchanges after predicting full-year operating profit would be “towards the lower end” of market expectations.
The supplier of specialist insulation and building products across Europe said market conditions remained challenging and variable, with notably softer demand in May and June, particularly in Germany and France.
Underlying operating profit is expected to be around £33mln in the year to 30 June 2023, with early impact of productivity initiatives partially offsetting demand weakness and inflationary impact on operating costs.
“Whilst timing of demand recovery remains uncertain, H2 profit is expected to benefit further from the ongoing productivity initiatives,” SIG said.
The firm said revenue of £1,424mln would be flat year-on-year, reflecting volume declines offset by input price inflation.
At 8.30am, shares were down 3.50p at 31p.