SIG PLC (LON:SHI) has proposed a £150mln fundraising to push on with its new chief executive growth strategy as it reported disappointing sales and a lurch into the red for the past year.
The insulation, roofing and building exteriors maker said sales fell 37% in March and April due to the impact of coronavirus but are now returning to previous levels in most of its operations.
READ: SIG scraps dividend and guidance amid coronavirus crisis
For the past calendar year, group revenues fell 9% to £2.1bn and it slid to a loss of £112.7mln before tax, from a £10.3mln profit the previous year, while underlying profits fell 44% to £41.9mln.
Updating its cash position, it said this had increased to £155.3mln as at 30 April from £135mln in late March, with net debt of £114.1mln.
New CEO Steve Francis and said the board have developed a new customer-centric strategy that reprioritises sales: “After nearly a decade of contraction, which has included disposals, rationalisation, debt and cost reduction, it is now time to focus on how to grow SIG and rebuild our core USPs of customer proximity, service and expertise.”
As part of the equity issue planned for the coming weeks, private equity group Clayton, Dubilier & Rice has agreed to buy £85mln shares, which will give it roughly a 25% stake and two seats on the board.
The group also announced the appointment of group financial officer Ian Ashton, joining from Low & Bonar after the materials group was taken over earlier this month, and former Travis Perkins and Tesco executive Simon King as a non-executive director.