SIG PLC Trading Update (0641U)
January 13 2017 - 1:00AM
UK Regulatory
TIDMSHI
RNS Number : 0641U
SIG PLC
13 January 2017
13 January 2017
SIG plc
("SIG" or "the Group")
Trading Update
SIG plc, a leading distributor of specialist building products
in Europe, with strong positions in its core markets of insulation
& energy management, interior fit out and roofing products,
today issues a Trading Update for the twelve months ended 31
December 2016.
Group sales in 2016 were c.GBP2,738m, an increase of 11.2%
compared to prior year, having benefited from foreign exchange
movements (+6.9%), acquisitions (+3.7%), and working days (0.3%).
On a like-for-like ("LFL") basis Group sales increased 0.3%.
In line with previous guidance the Group continues to expect
that underlying profit before tax for 2016 will be within its
previously stated GBP75m to GBP80m range, and that gross margin
will be around 30bps lower than prior year.
In the UK & Ireland LFL sales in the year increased 1.1%,
with SIG Distribution up 1.2% and SIG Exteriors down 1.5%. In
Mainland Europe LFL sales declined 0.5%, with France and Germany
down 2.0% and 1.3% respectively.
SIG's leverage as at 31 December 2016 is expected to be c.2x
(net debt to EBITDA), above its medium-term target of 1 - 1.5x.
Going forward the Group will prioritise leverage reduction by more
tightly focusing on its cash generation, moderating capital
expenditure and suspending its infill acquisition programme.
Commenting, Mel Ewell, Chief Executive, said:
"2016 was a disappointing year for SIG. While the competitive
environment, particularly in the UK, was challenging, our
transformational change programme, although taking the Group in the
right strategic direction, distracted us somewhat from our
customers.
"Going forward we need to better balance business change with
the day-to-day operations of the Group. Our principal aims for 2017
are therefore to restore our customer focus, place an increased
emphasis on sales growth, and reduce leverage."
Full year results
SIG will announce its Full Year results for the year ended 31
December 2016 on 14 March 2017.
Enquiries
Simon Bielecki, Head
of Investor Relations SIG 0114 285 6300
Richard Mountain / Nick
Hasell FTI Consulting 020 3727 1340
Cautionary Statement
This Trading Update is prepared for and addressed only to the
Company's shareholders as a whole and to no other person. The
Company, its directors, employees, agents or advisors do not accept
or assume responsibility to any other person to whom this Trading
Update is shown or into whose hands it may come and any such
responsibility or liability is expressly disclaimed.
Certain information included in this Trading Update is forward
looking and involves risks and uncertainties that could cause the
actual results to differ materially from those expressed or implied
by forward looking statements. It is believed that the expectations
set out in these forward looking statements are reasonable but they
may be affected by a wide range of variables which could cause
future outcomes to differ from those foreseen in forward looking
statements, including but not limited to, changes in risks
associated with the level of market demand, product availability
and pricing, competitor risk, credit risk, credit insurance,
restructuring of SIG and exchange rates. More information about the
risks and uncertainties that may affect the Group's performance is
contained in the Annual Report to Shareholders for the year ended
31 December 2015. All statements in this release are based upon
information known to the Company at the date of this Trading
Update. The Company undertakes no obligation to publicly update or
revise any forward looking statement, whether as a result of new
information, future events or otherwise.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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