SIG: Revenue drops as housing supplier warns of continued weak demand
Housing supplier SIG has reported another drop in revenue after soft demand for interiors continued to bite.
Group like-for-like revenue saw a sequential improvement but still dropped by four per cent in the three months to 20 September, after a seven per cent decline in the first half of the year.
SIG said that weak demand “continued to be a factor” in the majority of its markets but that it benefited from moderation in deflationary headwinds and “encouraging” stabilisation in overall volumes.
It has previously warned of “challenging conditions”, particularly in the UK interiors market and across Europe, where it designs anything from ceilings to raised access flooring.
The European flooring market felt the pressure of the cost-of-living crisis in recent years as consumers tighten their belts.
The company said it has “performed well relative to its markets” and is also “continuing to deliver on cost reduction and efficiency objectives”.
“These initiatives are helping support near-term performance, but will also help drive higher profitability as markets recover,” SIG said.
The company, which supplies insulation, roofing, and other building materials for houses, said that the underlying operating profit guidance for the full year remained unchanged and was in line with market expectations.
The company’s top brass were also confident in achieving an operating margin target of five per cent in the medium term.
SIG operates in a range of European countries, including France Germany and Ireland and employs more than 7,000 people.
It remains to be seen whether the collapse of construction behemoth ISG will affect SIG’s operations going forward.
ISG, the sixth biggest construction contractor in the UK, filed for administration on Friday after an inability to fund legacy financial difficulties from the pandemic.
Hundreds of subcontractors in the construction industry are now at risk down the supply chain.