Profits Hold at SIG for 2024 as UK Roofing Sales Increase

OPERATING PROFIT is expected to hold at £25m in line with market expectations, SIG plc says in its trading update for the year 2024.

Despite 2024’s like‐for‐like sales being down 4% on 2023, with revenues of £2.61bn, there was a H2 improvement, slowing reductions to 2% vs 6% in H1.

SIG UK Roofing Sales

In the UK’s SIG Roofing division of SIG plc, sales for 2024 reduced in the first half of the year by 2%, only to recover in the second half. Increasing sales by 5% for H2, the year finished with an overall increase of 2%, to a total of £382 million, delivering “a notably strong set of results”.

The supplier of insulation and building products across Europe, said its results reflect continued strong commercial execution, cost reduction and productivity gains, against a “challenging market backdrop”.

Performing well relative to its markets during the second half of 2024, SIG says it is delivering its cost reduction and efficiency programmes. Benefiting near‐term performance, these initiatives are also strengthening the company’s commercial and operational capability, which is expected to help drive higher profitability as markets recover.

Restructuring

The Board expects operating expenses to show an absolute reduction of around £31m in 2024 compared to 2023. Restructuring contributed savings of around £19m.

In the UK Interiors business, new managing director Howard Luft, appointed in October, accelerated strategic operational changes to improve its operating margin.

In the UK Specialist Markets revenue was affected by weaker demand in the agricultural and commercial warehousing sectors. There was more resilience in the construction accessories business.

Adjusted group revenues were 4% lower in the year, partly affected by negative exchange rates and branch closures. Branch closures had the biggest impact on SIG’s UK wall, floor and ceiling Interiors business, reducing sales by 3%. Selling price deflation had a negative 3% impact on the year overall, while volumes were down 3% in H1, stabilising at flat in H2.

Weak demand continued to be a factor in the majority of the Group’s markets, reflecting, SIG says, “the ongoing softness in the European building and construction sector”.

Robust Trading Performance

Gavin Slark, SIG plc CEO

Gavin Slark, SIG CEO, said: “Whilst demand across the European building and construction sector remained weak throughout 2024, the Group delivered a robust trading performance relative to the market, through a strong focus on our customers and the great efforts of all our people.

“I remain confident that the actions we have taken, and the opportunities that exist within SIG’s portfolio for further strengthening our operating performance and accelerating growth in our specialist businesses, will enable us to deliver increasingly profitable growth over the medium term.

“Whilst we expect continued softness in market conditions, at least through the first half of 2025, we are confident in our ability to manage through this current phase of the cycle, whilst also strengthening our operations. We remain ready to take advantage of the significant long‐term opportunities for the Group as markets recover.”

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