SIG PLC Replacement - SIG plc Half Year Trading Update (1668K)
July 05 2017 - 2:37AM
UK Regulatory
TIDMSHI
RNS Number : 1668K
SIG PLC
05 July 2017
5 July 2017
SIG plc
Half Year Trading Update
Please note correction in first paragraph of trading summary as
below. Currency contributed 5.3% to growth (not 0.5% as previously
stated) and acquisitions contributed 0.5% to growth (not 5.3% as
previously stated). The total increase in Group revenues from
continuing operations remains 8.1%.
SIG plc ("SIG" or "the Group"), a leading distributor of
specialist building products in Europe, today issues a trading
update for the six months ended 30 June 2017.
Trading summary
Trading in the first half of the year was in line with
expectations. Group revenues from continuing operations increased
by 8.1% to c.GBP1,417m, with currency contributing 5.3% to growth,
acquisitions 0.5%, offset by fewer working days 0.1%. Like-for-like
("LFL") revenue growth showed a marked improvement on H2 2016, as
set out in the table below.
LFL revenue growth H1 2017 H2 2016 H1 2016
SIGD 1.6% 0.0% 2.2%
---------------------- -------- -------- --------
SIGE (0.3)% (0.8)% (1.0)%
---------------------- -------- -------- --------
Ireland 4.7% 2.8% 4.7%
---------------------- -------- -------- --------
Offsite Construction (2.3)% (15.7)% 33.5%
Other (16.9)% 14.9% 46.4%
---------------------- -------- -------- --------
UK & Ireland 0.7% (0.1)% 2.5%
---------------------- -------- -------- --------
France 4.8% 0.0% (3.6)%
---------------------- -------- -------- --------
Germany 1.8% (0.6)% (1.4)%
---------------------- -------- -------- --------
Poland 9.6% 0.2% 4.4%
---------------------- -------- -------- --------
Benelux (4.8)% 2.2% 2.6%
Air Handling 12.2% 8.2% 9.0%
---------------------- -------- -------- --------
Mainland Europe 4.2% 0.5% (1.0)%
---------------------- -------- -------- --------
SIG Group 2.4% 0.2% 0.8%
-------- -------- --------
SIG recorded an improved performance in the UK as it
successfully passed on increased supplier price inflation to
customers. In Mainland Europe LFLs increased 4.2% as the Group
continued to benefit from the recovery in construction markets,
particularly in France.
Leverage
Leverage reduction remains a key near-term priority for SIG. The
business is beginning to respond to actions taken to strengthen the
Group's balance sheet, including asset disposals and tighter
control over cash, working capital and capex. As a result, the
Group now expects its net debt at 30 June 2017 to be lower than at
31 December 2016 (GBP259.9m). This improved level of net debt
should result in a lower seasonal peak in half year leverage and
facilitate a reduction in leverage in the second half of 2017,
towards the target range of 1.0 - 1.5x in 2018.
Outlook
As previously stated, given that the Group's 2016 results were
weighted towards the first half of the year, SIG expects its H1
2017 performance to be lower than that achieved in H1 2016 and
comparable with H2 2016.
For the full year 2017 the Board expects the business to show a
stronger second half, as is usual. Key risks to the full year
include the increased political and macro uncertainty in the UK,
potentially mitigated by continuing improvement in confidence in
European markets.
The Group will announce its Half Year results on Tuesday 8
August 2017.
Enquiries
SIG plc
Meinie Oldersma, Chief Executive Officer +44 (0) 114 285 6302
Nick Maddock, Chief Financial Officer +44 (0) 114 285 6302
Simon Bielecki, Head of Investor Relations +44 (0) 7515 794359
FTI Consulting
Richard Mountain/Nick Hasell + 44 (0) 20 3727 1340
Cautionary Statement
This Trading Statement 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
Statement is shown or into whose hands it may come and any such
responsibility or liability is expressly disclaimed.
Certain information included in this Trading Statement 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 2016. All statements in
this release are based upon information known to the Company at the
date of this Trading Statement. 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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