SIG on track to achieve 'good progress' this year

16th May 2014 08:15

SIG, which distributes specialist building products in Europe, on Friday confirmed it expects to achieve 'good progress' this year.It said its progress was based on the trading environment, operational efficiency savings and a modest net benefit from the strategic initiatives. It also told investors it remained on track to achieve its £1-5m net benefit target this year, with the figure set to rise to around £30m in 2016. "Last year's improving sales trend continued into 2014, with trading benefiting from the mild winter weather and weak prior year comparatives," the group said in its interim management statement. Group revenues from continuing operations for the first four months of the year were up by 9.4% compared to the same period in 2013, having benefited from acquisitions, up by around 2%, although they were adversely affected by foreign exchange movements, down by the same percentage. On a like-for-like (LFL) basis, sales also increased by 9.4%, which compared with a decline of 2.6% at the same point last year compared to the first four months of 2012. Trading in the UK & Ireland continued to be stronger than in Mainland Europe, with LFL sales up by 13.1%. In Mainland Europe, LFL sales increased by 6.0%, with France up by 5.1% and Germany ahead by 6.4%. The gross margin in the first four months was marginally ahead of the same period last year, SIG added. NR