Member Article

Sheffield-based SIG sees pre-tax profit boost despite ‘weakening’ Euro

Supplier of interior building products, SIG, has reported pre-tax profit of £39m for the year ending 31st December 2014, up from £2.1m in 2013.

In 2014, the Sheffield-based company acquired 12 businesses for a combined sum of £20.9m. Seven of the acquisitions were in the UK, three in France and one each in Germany and The Netherlands.

The group saw sales from continued operations in the UK increased 11.3% to £1.33bn.

However, the supplier saw revenue dip to £2.6bn compared to £2.7bn for the same period last year. Sales from continued operations in mainland Europe were also down, decreasing 5.4% to £1.2bn.

Stuart Mitchell, SIG chief executive, said: “The Group made good progress on self-help measures, both in terms of market outperformance and strategic initiatives, where it over delivered against its targets and achieved a net benefit of £10m last year, mainly from procurement.

“This gives a high degree of confidence in delivery of the remainder of the programme, which targets a cumulative net benefit of c.£20m in 2015 and c.£30m in 2016.

“We anticipate that trading conditions will remain variable across the Group’s countries of operation in 2015, with continued good growth in the UK & Ireland and uncertainty persisting in Mainland Europe.

“While the Group also notes the continuing weakening of the Euro and potential adverse translational effect on profit, it expects this headwind to be partially offset by lower fuel costs.

“Although weighted towards the second half, due to strong H1 comparators, our continued scope for self-help through market outperformance and the strategic initiatives give SIG confidence in achieving further progress this year.”

This was posted in Bdaily's Members' News section by Ellen Forster .