SIG PLC Share Price Rose 3.18% on Its FY Results As Sales Fell

The SIG plc (LON: SHI) share price rose 3.18% after releasing its full-year trading update for the year ended on 31 December 2023. The company reported that its like-for-like sales had fallen 2% compared to last year, resulting in full-year revenues worth £2.76 billion. 

The leading supplier of specialist insulation and building products revealed that it expects its underlying profit to be in the upper half of the previous guidance range of £50 million to £55 million. The company expects to generate free cash flows worth £4 million this year. 

SIG Plc noted that its financial results for the 2023 fiscal year reflected its continued robust execution against a challenging market environment. The firm revealed that the restructuring and productivity initiatives will deliver about £10 million of annualised cost savings, most of which will accrue in the 2024 financial year. 

The Group has adeptly navigated the challenges posed by an increasingly complex market environment throughout the year, demonstrating resilient trading results compared to the broader market. As projected and outlined in our October 2023 trading update, demand witnessed a softening trend across most of our geographical markets in the year's second half.

However, the commitment to executing its commercial strategy and an unwavering emphasis on customer service throughout its branch network allowed us to maintain strong momentum despite the challenging conditions.

The Group is poised to disclose a modest free cash inflow for the year, estimated at approximately £4 million. This positive outcome can be attributed to robust working capital management. Notably, the year-end gross cash balances are projected to be around £132 million, reflecting a marginal increase from the previous year's £130 million.

Gavin Slark, CEO, commented: “Despite challenging market conditions across the European building and construction sector, the Group has delivered a robust trading performance through a strong focus on our customers and the great efforts of all our people. In my first year as CEO, I have been impressed by the opportunities that exist within SIG's portfolio for strengthening our operating performance, accelerating our specialist businesses, and delivering more profitable growth over the medium term.”

SIG plc share price. 

The SIG Plc share price rose 3.18% to trade at 33.71p from Monday’s closing price of 32.67p.