SIG performs in line with expectations

Building materials distributor SIG has said that trading since July 1st has been in line with expectations, with the overall gross margin remaining ahead of the same period last year.

However, the company continues to expect the rate of improvement for the full year to be lower than the 50 basis point increase reported in the first half and said that, as expected, market volumes have declined slightly throughout the year.

Sales per day from continuing operations for the ten months to the end of October were flat on a constant currency basis, while sterling sales per day declined by around 4% compared to the prior year, due to exchange rate movements.

In the year-to-date, sales per day in mainland Europe grew by about 2% in constant currency, but dropped by around 6% in sterling.

Benelux and France showed the strongest progress, while Germany was marginally lower. In the UK & Ireland sales per day from continuing operations fell by about 2% in constant currency, with the UK down by around 1%.

"Following some improvement in constant currency sales per day in Q3 compared to Q2 on a year-on-year basis, October was slightly negative, meaning that July to October was flat compared with prior year," the group said.

SIG has maintained its strong financial position and remains on track to meet its target of around 1x leverage at the year end.

Looking forward, the company believes it is on track to meet full year expectations.

NR