SIG records £3m pre-tax profit in half year to June

By Dominic Ellis
SIG says material shortages have had "minimal impact" with group sales soaring 33% under its Return To Growth strategy

SIG recorded an underlying profit before tax of £3 million in the six months to June 30.

Industry-wide pressures on materials shortages and cost inflation have had "minimal impact", with group sales soaring 33%, it said in a statement.

CEO Steve Francis said its focus on "empowered and entrepreneurial local teams" and service is building back market share and profitability.

"The strong revenue growth across our broad product offering, together with disciplined margin management, has been key to delivering an earlier and stronger profit than previously anticipated," he said. 

"Trading in July and August has continued to be solid and we expect continued profit improvement through H2 2021, despite the ongoing impact of material shortages and cost price inflation. As a result, providing the disruption from these headwinds does not worsen, we now anticipate full year underlying operating profit will be ahead of our prior expectations."

Andy Murphy, Director at Edison Group, said SIG has made strategic progress on recovery and invested in people, the business model and its service offering.

"It has added experienced Managing Directors in Germany and Benelux which means that all countries now have an MD, rebuilt the UK leadership team with new experienced hires, added 86 commercial or branch managers in UK Distribution, added training programs in France and Poland and increased focus on H&S across the Group," he said.

SIG has also implemented a new business model across the Group under the ‘Seven Pillars Return to Growth Strategy’ designed to improve relationships with customers. "Clearly there is further to go on this initiative but early signs is promising," he said.

SIG was awarded the Green Economy Mark by the London Stock Exchange in July. The classification highlights companies and investment funds listed on the LSE’s main market or on AIM that are driving the global green economy. 


Featured Articles

Skanska Commences Multiple Worldwide Projects

Skanska is building across the globe with multiple projects throughout construction, healthcare and sports industries

A. O. Smith Helps Construction Water Sustainability Goals

As A. O. Smith plans to acquire Pureit from Unilever, we look at the company’s wider bid to meet worldwide water challenges using technology and innovation

Skanska Signs $596m Contract for Advanced New York Bridge

Skanska agrees contract to replace the Livingston Avenue Bridge for US$596m, to improve rail connectivity, safety, infrastructure and economic simulation

Why gypsum is the building block of world construction

Built Environment

ResponsibleSteel Reports Urgent Need for Sustainable Steel

Sustainability & Green Building

McKinsey Sustainable Materials Hub Driving Decarbonisation

Sustainability & Green Building