Member Info for Culpepper

It’s very cheap, isn’t it. Steadied out past few days.
So I’ve done a recent bet that it’ll get a lift on results.

I doubt many thought it would hold the recent gains.

Just a couple of comments from the pundits.

“The specialist supplier of insulation, roofing and exterior products to the construction sector reported a 2021 pre-tax loss of £15.9 million.
According to S&P Market Intelligence, the consensus estimate was for a profit of £11.5 million.
However, the loss was due to charges of £35.2 million meaning underlying pre-tax earnings were comfortably ahead of forecasts at £19.3 million.
The charge was largely made up of goodwill impairments, amortisation of intangibles, restructuring costs and cloud computing expenses.
At an operating level, earnings were exactly in line with market forecasts at £41.4 million on revenues of £2.29 billion, which slightly exceeded estimates.”

and from another

“Overall net debt jumped by £127mn to £365mn, though, as £124mn in cash flowed out of the business due to acquisitions and higher inventory spending as it sought to avoid supply shortages.”

Analysts ( and me actually ) seem to have been caught out by the charges. But, you know, if things go reasonably well, net profit is on the way. Jam tomorrow. In the meantime, cash neutral.

I googled that. Says it’s a female Japanese singer.
Must go now.

It’s all well documented. And it’s not rocket science to avoid this if you don’t like the ramifications.
Offence on a chat board.? Maybe get out a bit more.
I’m going to Sainsbury’s again.

Into Sig and mine at the moment. Had enough of an “ ex employee” , in the know and all that guff, on here Saturday.

Anybody with real doubts, don’t touch it. Simple.

Anybody with worries about the future of the construction industry and Sig in particular should not have them - sell and don’t touch with a barge-pole. No good fretting on here.

On acquisitions, as far as I know has not advised as they occurred. The UK ones were picked up from press reports. They told us earlier they would be very targeted for specific reasons. They have kindly given that in respect of the year under review. - “The Group acquired the above businesses to enlarge the UK Interiors business in terms of product range and geographic location.”

It seems there are more, perhaps this financial year, and ongoing, for the reasons given.

We opened branches in most countries, with a multi-year programme of branch openings now underway to in-fill geographic gaps or upgrade our presence in major urban markets.

If I have missed the detail somehow, no doubt somebody will tell me.

You’re obviously a fan of his.

A recovery share where I was looking for improvement. It is in that-

The Group saw a 24.3% increase in its LFL revenue over the year, with Group underlying revenue up to £2,291.4m (2020: £1,872.7m), reflecting a strong recovery from the Covid-19 impact in 2020, driven by the effective implementation of the Return to Growth strategy as well as the inflationary tailwind. Underlying results exclude businesses that are classified as non-core, and Other items, in order to provide a better understanding of the performance of the Group. On a statutory basis, Group revenue was £2,291.4m (2020: £1,874.5m), with no sales from non-core businesses (2020: £1.8m).
Pass through of product price inflation added to the top line in all geographies, to an increasing degree in H2. We estimate the impact on revenue for the full year to be approximately 8%.
Underlying gross profit increased 28% to £602.1m (2020: £470.0m) with a gross profit margin of 26.3% (2020: 25.1%). This primarily reflects increased rebate receipts due to increased sales. On a statutory basis, gross profit increased from £470.5m to £602.1m with gross margin increasing by 120bps to 26.3% (2020: 25.1%).

Operating costs and profit
 
The Group's underlying operating costs were £560.7m (2020 restated: £523.1m). The increase was primarily due to the increased trading volumes, inflation, increased variable compensation, and the non-recurring government support schemes in the prior year, such as furlough and other wage initiatives. The Group's underlying operating profit was £41.4m (2020 restated: £53.1m loss), and at a statutory level the Group's operating profit was £14.0m (2020 restated: £160.0m loss) after Other items of £27.4m (2020 restated: £107.4m). The latter included £9.9m impairment of goodwill, £4.7m amortisation of intangibles, £2.0m of onerous contract costs, £2.4m costs associated with refinancing, £3.7m costs relating to restructuring activities, and £3.3m related to cloud computing costs following IFRS Interpretation Committee guidance on this topic issued during the year. Prior year operating profit has also been restated as a result of the cloud computing guidance issued.
 
Profitability continued to improve in H2 compared to the first half, with underlying operating profit approximately doubling in H2 vs H1.

And the confidence in that

Current trading and outlook
· Trading well in 2022 to date, and ahead of plan
· Supply challenges being managed
· Confidence in 3% Group operating profit margin for FY23, and in the Group's medium-term path towards 5%
· Cash generation expected in H2; full year cash neutral

We opened branches in most countries, with a multi-year programme of branch openings now underway to in-fill geographic gaps or upgrade our presence in major urban markets

Increasingly viewed as an attractive and trusted home by prospective industry recruits and M&A targets

They are obviously ahead. Phase 2 has come early.

Well, level-pegging on the UT. But a bit of a recovery on the day.

Looks like you were right.

Then we’ll be off like a rocket. Whoosh!

That’s just done on red and blue trades, neither of which are necessarily buys or sells. We’re down just now - greater value sold than bought.

We are looking for progress.

Sig was on its uppers a couple of years ago leading to recapitalisation, and CD and R taking getting on 30%, at 25 and 30p, and 2 seats on the board. There’s been thoughts they may buy it. I have no view on that.
It is one of CD and R’s intended turnaround investments, with a view to an eventual exit one way or another and a profit for them.
Company reporting has been positive, despite COVID, supply issues, inflation and so forth. Most companies have been challenged. There must also at the same time have been some upheaval within the company as the necessary changes are made. They should by now be well on their way internally, and that should start to feed into market share alongside Phase 2.

As it is, Sig has probably done well to stabilise revenue taking inflation into account at their forecast underlying operations figure of £2292m over 2020’s £2084.7m.
Profitability is increasing. There is an underlying operating profit forecast of no less than £40m, compared with an operating loss of £53.3m for 2020. That is a good start - they are looking to achieve 3% - 5% net over the medium term.
We shall have to wait on the statutory figures., together with the narrative and outlook. They can be expected to be as cautious as most companies about the outlook - there’s a lot going on.
They will mention dividend. I shall be surprised if one is announced. They will probably repeat it is their policy to implement a progressive dividend in due course. And there is phase 2 to come, targeted acquisitions etc. to improve market share.
The directors last bought in November and December at the 50p mark.

Yes. Still to beat the 5 day chart, but not complaining.

They’ll have done well to pick up 2.95% at the bottom.

By the way, I don’t think you meant to refer to the £40mil as a net loss.

https://www.lse.co.uk/rns/SHI/holdings-in-company-3gxlti4veft1lvi.html

The Greater Manchester Pension Fund is a pension fund for employees of various institutions in Greater Manchester, United Kingdom. It is run by Tameside Metropolitan Borough Council and follows the rules of the Local Government Pension Scheme.
With £23 billion in assets as of 2018,[2][3] it is the largest local authority pension scheme in the UK and 9th largest pension fund in the UK (including private companies) overall. Most investments are in Stock Market shares and securities.

See previous posts.
“Inflationary increases in input costs have been well managed, with the direct pass through of these reflected in the reported sales figures.”

I prefer to believe Sig internationally published price increase information.
English version.

https://sigdistribution.co.uk/price-changes/