SIG, a Sheffield-based supplier of specialist insulation and building products, has warned of lower than expected sales and underlying operating profit.
In a trading update for the year ending 31 December 2024 to date, the business noted that market conditions have remained challenging, with subdued demand in the majority of its markets, reflecting ongoing softness in the building and construction sector.
With weaker than expected trading in recent weeks and a more cautious view of the timing of any potential market improvements, the Board now expects 2024 full year underlying operating profit to be in the range of £20m to £30m – below the current analyst range of £36.7m to £43m.
The company also highlighted a Group like-for-like (LFL) sales decline versus the prior year’s May and June of 7%.
SIG said it “continues to perform well relative to its markets and is also continuing to drive cost reductions and efficiency initiatives, which support the continued expectation of a stronger second half performance and will help drive higher profitability as markets recover.”
