Construction products supplier SIG has reported a loss in profits and decreased turnover in its half year results, following a tough trading period.
Revenue for the six months to 30 June 2024 was around £1.3 billion, down 6.8 per cent from the roughly £1.4 billion achieved in the same period in the previous year, generating a pre-tax loss of £11.3 million (H12023: £12.2 million profit).
The Sheffield-headquartered company said the results reflected ‘prolonged challenging trading conditions’ in its main businesses, leading to lower volumes, while product pricing was also down.
SIG generated an operating profit this year of £7.1 million, down significantly on the prior period (£30 million), and an underlying operating margin of 0.9 per cent (H12023: 2.3 per cent).
A ‘disciplined approach to cash management’ during H12024 saw the group emerge with net debt of £477 million, marginally up on the prior half year.
SIG posted a total loss of £14.2 million for the six months to 30 June, compared to a £4.7 million profit in the prior trading period.
CEO, Gavin Slark, said: “Our results in the first half reflect the prolonged challenging market conditions we are currently facing across most of our European businesses.
“In light of these conditions, we took further actions to reduce our permanent cost base in the half, which will benefit us in the future.
“During the period, we also made further progress on our strategic initiatives to improve our underlying operations and to position us to capture additional growth when markets improve.”
The group expects to deliver an underlying operating profit for FY2024 in the range of £20 million to £30 million, after productivity and cost initiatives could create a “slightly stronger second half”.
The board remains confident in achieving the group’s operating margin target of 5 per cent in the medium term.
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