SIG expects lower underlying profit

18th Jun 2009 07:36

SIG, supplier of construction products, said due to the continuing difficult market conditions, it now expects underlying pre-tax profit for the year to be around the bottom end of the current range of market expectations.The group said since its last trading update in May, trading conditions have remained very challenging. Across all businesses in the UK, volumes remain subdued whilst European markets have not achieved the usual level of seasonal improvement in the last four weeks.The recent strength of Sterling against the Euro, whilst having a beneficial effect on the Sterling balance sheet will, if it continues, impact on the translation of Euro earnings, it said.SIG said as a result of additional measures being implemented in the last four weeks, it is expected to deliver a further £8m of cost savings on an annualised basis."Following the equity fundraising completed on 9 April 2009 the group's balance sheet remains strong and the board is confident that the group will continue to operate within its covenants throughout 2009," said the group.