SIG launches 'improvement plan' after cutting profit outlook

16th Jul 2026 10:15

(Sharecast News) - Insulation, roofing and construction products supplier SIG said it now no longer expects a recovery in market conditions in the second half of 2026, as it lowered its profit outlook for the full year.

The firm said that like-for-like sales were 1.5% lower year-on-year in the six months to 30 June as a result of continued challenging conditions across its major markets, made worse by poor weather at the start of the year.

While LFL trends improved to +1% in the second quarter, from -5% in the first, "no material recovery in market conditions in H2 2026 is anticipated".

As a result, the board expects underlying operating profits this year to be around £25m, compared with £32.1m in 2025.

Back in March at the time of its full-year results, the company had said it expected an improvement in conditions over the latter part of the year, with "further financial and strategic progress in 2026".

Nevertheless, SIG said it is working on an "improvement plan" that assumes no market recovery this year or next.

"The plan aims to generate cash of at least £100m, through a combination of business simplification, disposals, business improvement and working capital optimisation. It is also targeting an annualised operating profit run rate improvement of £50m by H1 2028," it said in a short statement.

The stock was down 0.4% at 8.19p by 1226 BST, having now dropped 20.7% so far this year.

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