Shares in SIG PLC (LSE:SHI) edged higher on Friday morning after the building materials supplier said trading in the third quarter held steady, leaving its full-year profit forecast unchanged.
The Sheffield-based group, which distributes insulation, roofing and interior products across the UK and Europe, reported flat like-for-like sales for the three months to 30 September, with volumes up 1% year on year.
The company said it continued to perform better than the wider market despite weak construction demand across the continent.
Revenue for the quarter came in at £664 million, bringing total sales for the first nine months of the year to just under £2 billion, up 1% on a like-for-like basis.
The UK business grew by 1%, supported by a strong performance from the Interiors division, which saw sales rise 5%. However, conditions in continental Europe remained mixed, with Germany down 5% and France down 2%.
Chief executive Pim Vervaat, who took the helm this month, praised the “robust trading performance in continued difficult market circumstances”. He added: “I look forward to working with the Board and management teams in driving substantial value over time.”
SIG said it had continued to make progress on cost savings and working capital efficiency, helping to offset price pressure from subdued demand. The board said its expectations for full-year underlying operating profit remained unchanged and in line with market forecasts.
While the company noted that construction activity across Europe remains at a cyclical low, it said it was well placed to benefit once recovery begins, citing strong operational gearing, meaning profits could rise quickly when volumes improve.
The stock was up 1% in early trading as investors welcomed the steady update and confirmation that profits remain on track.