SIG warns of challenging second half

SIG, the building products distributor, said it was buffeted by bad weather and a weak Euro in the first half, with more challenges ahead in the second.

The firm expects its six month figures to be broadly flat in constant currency terms, but said that total sales in the first half fell by nearly 4% in Sterling terms.

Sales in local currency in Mainland Europe were up around 2% compared with prior year, with France and Benelux showing the strongest progression, the firm said.

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Sales in the UK fell 1% compared to 2011, with a fall in the second quarter overshadowing growth in the first.

In Ireland, which represents around 2% of group turnover, local currency sales were substantially down on 2011, SIG said.

It warned that the uneven demand patterns it had experienced so far this year were expected to continue with the Olympic Games likely to disrupt trading in the London region during the Summer.

"Although the nature of SIG's business means that forward visibility is limited, recent macro economic data and construction sector forecasts suggest that markets will remain challenging this year," the company said.

"Against this background, SIG remains focused on outperforming its markets, on cash and working capital discipline, and improving efficiency so as to manage what appears to be a slight increase in downside risks."