SIG sees improvement since start of year

14th Nov 2013 08:11

- One per cent LFL decline in YTD sales- Group sales for year to October rose three per cent- 'Extremely slow' start-up of the Green Deal and Energy Company obligation SIG, which distributes specialist building products across Europe, reported a one per cent decline in like-for-like (LFL) sales in the year-to-date, hit by poor weather at the start of the year. However, it saw an improving trend continue into the second half, with LFL sales up around two per cent in the fourth months to the end of October. Overall group sales from continuing operations for the year to October increased by over 3%, having benefited from exchange rate movements, SIG said. In Mainland Europe, LFL sales for the last four months increased by around 0.5%, with Poland and Benelux exhibiting strongest progress. LFL sales in France were also positive but in Germany were slightly down, it revealed. In the UK & Ireland, LFL sales for July to October increased by around 3% and were up by about 7.5% in the UK excluding SIG Energy Management, which continued to be affected by the extremely slow start-up of the Green Deal and Energy Company obligation. Gross margin for the group continued to be slightly ahead of the same period last year.In a statement the company said: "The recovery in the UK construction market continued to gather pace in the second half driven by increased demand from the residential sector, although this has yet to be seen in the non-residential sector. While the group's recent performance in Mainland Europe has improved, market conditions there are expected to remain variable. "Subject, as usual, to any exceptional adverse weather conditions in the remainder of the year, SIG is on track to meet its expectations in 2013."NR