Buoyant UK housing market lifts SIG

12th Aug 2014 08:32

Building product distributor SIG forecast better-than-expected annual profits on the back of the buoyant UK housing market, but said trading in France was still tough.SIG, which provides insulation and roofing, said full-year profits should be about £7m higher than a year ago, compared to its previous guidance of an improvement of up to £5m.The group said it had a good first half after saving money in buying, the better UK housing market and the mild winter.Chief executive Stuart Mitchell said: "Trading conditions in the UK have continued to gather momentum, led by the revival in the housing market."As anticipated, conditions in mainland Europe remain variable, with the French construction market expected to weaken further in the second half. "Although SIG is exposed to ongoing currency headwinds and a challenging market backdrop in France, the group's first half performance and progress on its strategic initiatives provide a strong base on which to achieve its full year expectations."Underlying pre-tax profit in the six months to 30 June rose 23.5% to £41.5m on a 6.5% increase in revenue to £1.29bn. Underlying basic earnings per share rose 31% to 5.1p and the interim dividend per share lifted 23.5% to 1.42p. Net debt fell 7.2% to £131.5m.Shares rose 6.3p or 3.6% to 178.3p at 08:06 in London.PW