(Alliance News) - SIG PLC shares toppled on Thursday after lowering its profit expectations and saying it expects weaker demand conditions in the second half of the year.
Shares in the Sheffield, England-based insulation, roofing, commercial interiors and construction products supplier fell 11% to 30.30 pence each in London on Thursday morning.
In a trading update for the third quarter of 2023, SIG warned it expects weaker demand conditions to persist for the rest of the year. Although it reported that second-half volume performance has so far improved from the first six months, it noted that "challenging" market conditions across all its geographies has meant growth has been lower than originally anticipated.
As a result, SIG cut its annual underlying operating profit forecast range to between GBP50 million and GBP55 million, a sharp drop from GBP80.2 million in 2022.
SIG originally reported in July that it expected to deliver full-year underlying operating profit at the lower end of a GBP65.3 million to GBP84.0 million range.
Looking ahead, the company said it will continue to progress its strategic and operational initiatives.
"We remain confident in our ability to further improve our market positions, and to continue to improve our profitability when market conditions recover," SIG said.
By Sabrina Penty, Alliance News reporter
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SIG (SHI)