SIG losses widen amid ongoing softness in construction activity

(Sharecast News) - SIG struck a cautious tone on the outlook on Tuesday as it posted a widening of its first-half losses as revenues dipped amid ongoing softness in construction activity across most markets.

In the six months to the end of June, underlying pre-tax losses widened to �16.3m from �10.3m on revenue of �1.29bn, down from �1.3bn. On a like-for-like basis, revenue was down 1.5%.

Underlying operating profit fell to �10.5m from �15.4m, with ongoing cost and productivity actions partially offsetting weaker demand, operating cost inflation and pricing pressure.

Chief executive Pim Vervaat said: "The group delivered a resilient performance in the first six months of the year despite challenging markets exacerbated by poor weather in the first quarter. For FY 2026 we are expecting to deliver circa �25m of operating profit whilst improving the group's net debt position in the second half.

"The markets are not anticipated to recover during the remainder of 2026 and possibly throughout 2027. Against this backdrop we are accelerating and extending our self-help plan which aims to generate cash of at least �100m by the end of 2027 and improve the underlying operating profit by �50m (run rate mid 2028), reducing the group's leverage to below 3.0x. The group has, and expects to maintain, a healthy level of liquidity going forward."

At 1452 BST, the shares were down 3.3% at 8.51p.

SIG is a supplier of specialist insulation and sustainable building products and solutions.

See latest RNS on Investegate