SIG reports improved full-year, sees good progress in 2014

13th Mar 2014 07:16

- Trading picks up in H1 of 2013- Dividend increased 20 per cent- Upbeat outlook, expects UK residential market to remain buoyantEuropean specialist building products supplier SIG reported improved full-year earnings as trading conditions picked up in the second half of its financial year. FTSE 250-listed supplier of insulation, roofing, commercial interiors and specialist construction products, said underlying pre-tax profit rose 5.3% to £88.1m for the period ended December 31st and revenue for the year climbed 4.4% to £2.6bn. The final dividend has been increased by 20%."2013 was a year of contrasting halves. Having been affected by the extended winter weather across Europe, which exacerbated the already weak market conditions, like-for-like (LFL) sales in the first half decreased by 3.1%," the group said. In the second half SIG said it benefited from generally good weather and improved trading conditions, particularly in the UK residential market, resulting in a 2.2% increase in LFL sales. Chief Executive Stuart Mitchell added: "As expected we've had a good start to 2014, helped by the mild weather and weak comparatives. There is a significant step-up in activity and investment this year, with meaningful payback expected from 2015 onward, and a net annual benefit target of around £30m by 2016. "Our outlook for this year is unchanged from January's trading statement. We expect construction activity in the UK residential market to remain buoyant, with the non-residential sector continuing to be broadly flat. In mainland Europe construction markets are anticipated to be variable."The group, which is divesting its underperforming German roofing business, said net debt amounted to £121.2m including £16.4m of acquisition expenditure. Looking ahead, SIG said its strategic initiatives give it confidence in achieving good progress in 2014.CJ