Shares in Sig plc (LON:SHI) zipped higher this morning after the insulation and roofing products distributor benefited from a recovery in European construction markets in the first half of the year.
The FTSE 250-listed group also got a kick from the weaker pound which plunged following last summer’s Brexit vote.
For the six months to 30 June, revenues from continuing operations rose by 8.1%, although currency tailwinds were responsible for 5.3 of those percentage points.
Europe better, UK resilient
The other major contribution came from SIG’s performance in mainland Europe, chiefly in France. Like-for-like sales on the continent stabilised in the second half of 2016 following a turbulent period, and the increased by 4.2% in the first six months of 2017.
UK sales were resilient, up 0.7% year-on-year with a particular strong showing from its Irish business. That modest growth came despite supplier price inflation, which SIG said it successfully managed to pass on to customers.
Second half trading set to be stronger
Last year was something of a one-off for SIG, in that its first half figures were stronger than those posted in the final six months.
As a result, the firm is forecasting its first half performance in 2017 to be weaker than that achieved in the same period of 2016.
That trend should reverse this year though, and the company expects the business to show a stronger second half, as is usually the norm.
Half year results will be published on 8 August.
Shares jumped 5.2% in early deals to 153.5p.