SIG expects 2014 pre-tax profit ahead of consensus

13th Jan 2015 08:23

Building products distributor SIG has said it expects 2014 pre-tax profit to be marginally ahead of market consensus thanks to strong demand in both residential and commercial segments.The company sees annual pre-tax profit exceeding the forecast of £96.5m, which compares to the previous year's £90m.Full-year revenues in 2014 rose 2.5% to £2.6bn despite foreign exchange headwinds which reduced sales by 3.1%.Group sales on a like-for-like (LFL) jumped 3.7%, boosted by a 9.1% increase in UK and Ireland.LFL sales in mainland Europe, however, decreased by 1% as amid a weak economy."The group expects continued good growth in the UK & Ireland, driven by residential demand and increasing activity in the commercial sector; uncertainty to remain in Mainland Europe, with no indication yet of any improvements in either the French or German construction markets; and further scope for self-help through market outperformance and the strategic initiatives," the company said.In 2015, the firm sees its cumulative net benefit target from the strategic initiatives to be £20m. The 2016 target remains at £30m."SIG anticipates that trading conditions in 2015 will remain variable across its countries of operation," it added.