Interim Management Statement
16 May, 2014
SIG plc (“SIG” or “the Group”), a leading distributor of specialist building products in Europe, today issues an Interim Management Statement in advance of its Annual General Meeting which is being held at 12 noon today in Sheffield.
Last year’s improving sales trend continued into 2014, with trading benefiting from the mild winter weather and weak prior year comparatives.
Group revenues from continuing operations for the first four months of the year were up by 9.4% compared to the same period in 2013, having benefited from acquisitions (+c.2%) but been adversely affected by foreign exchange movements (-c.2%).
On a like-for-like* (“LFL”) basis sales also increased by 9.4%. This contrasts with a decline of 2.6% at the same point last year compared to the first four months of 2012.
Trading in the UK & Ireland continues to be stronger than in Mainland Europe, with LFL sales up by 13.1%. In Mainland Europe LFL sales increased by 6.0%, with France up by 5.1% and Germany ahead by 6.4%.
The Group’s gross margin in the first four months was marginally ahead of the same period last year.
SIG continues to make good progress on its strategic initiatives to improve business performance, covering procurement, branch network, commercial vehicles and eCommerce. The Group is on track to achieve its £1m – £5m net benefit target this year and remains committed to delivering a net annual benefit of c.£30m in 2016.
There has been no material change to the financial position of the Group since the beginning of 2014 other than normal seasonal movements.
The Group’s outlook is unchanged from that stated at its Full Year results in March 2014. SIG continues to expect to achieve good progress this year based on the trading environment, operational efficiency savings and a modest net benefit from the strategic initiatives.
* Like-for-like is defined as sales per day on a constant currency basis excluding acquisitions and
Stuart Mitchell, Chief Executive + 44 (0) 114 285 6300
Doug Robertson, Finance Director
Simon Bielecki, Head of Investor Relations + 44 (0) 7515 794359
Richard Mountain/Nick Hasell + 44 (0) 20 3727 1340
This Interim Management 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 Interim Management Statement is shown or into whose hands it may come and any such responsibility or liability is expressly disclaimed.
Certain information included in this Interim Management 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. All statements in this release are based upon information known to the Company as at the date of this 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.