Member Info for Ste1980

Trading does remain buoyant with the merchant industry. From the update the comparison in like for like sales revenues doesn’t really give us much to go on because the % sound good but there is a large amount of supplier price increases and therefore inflation that has led to a proportion of those increases. What matters to us is that they have managed to pass those increases fully into the end user and we are also selling a greater quantity of units. Their statement about improving profitability suggests they have done this but doesn’t tell us to what extent.

At the moment there is no sign of a shortage of demand and that bodes well for SIG as it provides a platform to continue improving the result.

For pir products I’d expect them to have various suppliers, Celotex, kingspan, xtratherm, ecotherm. They’re all alike. Supply is difficult at the moment and prices are increasing. It all bodes well for a strong sales line and a healthy margin combined

They also own both British Gypsum and Celotex, both of which supply product types that SIG are heavily involved in

I work in this industry. At the moment it comes down to forward ordering to ensure the product is coming into stock . In some cases orders are required months in advance. Success will depend on how well that process is being managed. The shortage of products then allows for a margin opportunity for any merchant that has stock on the ground. Some suppliers switch to allocation whereby you are allowed so much product per month based on a previous years volume spend and that isn’t always last year

I’m happy with that. Return to profit expected in the second half of the year. That’s only 3 months so good progress getting made.

SP should rise over the coming months

SUG Roofing posted they have been busy working on some of the biggest projects in Hull. Hopefully this is replicated across the country and is a sign of better things to come

Madmick62
I work at a generalist builders merchant. 2 areas are driving the shortage, one is high demand, the other is raw material shortages.

A market price increase is going through on pir now and there’s another one planned for later in the year.

There is a huge demand for a variety of products. I’m not invested in any related companies but landscaping is expected to see strong growth this year

I’m not one for ramping, but if the results aren’t positive I’ll be surprised. If they can’t make money in this current market there’s something wrong. This should continue to rise from here

Today I saw a SIG vehicle crammed full of insulation arriving in Huddersfield. I work within the industry and the demand is extremely high in all areas. There is a shortage of PIR insulation so the price has risen over recent months. If SIG are pricing as they should be they will be increasing their % margins at a time when sales are strong. This should over time show in the bottom line results.

Increased revenue and gp, debt reduced and a final dividend payment.
This should continue to rise from here

Adding to the technical team will support selling value add products and in turn increasing margins. It’s surprising how many people don’t know what product they should use to achieve the correct acoustic or fire rating.

I’m relatively pleased with that trading update. Many companies will be in far worse a position. Broke even, staff furloughed and more recently yoy sales growth- I’ll take that

The update states there will be a pre emptive offer which means existing share holders will get first refusal but there is no confirmation of the price that will be offer. Only CD&R are getting the 25p shares as part of the first tranche. We are awaiting another update regarding the pre emptive offer

This started to move. Nice gain so far

You can’t follow what anyone says on these boards, historical posts show you that. Although i do still find them interesting, you have to make your own choices based on research.

Not a massive investment but I’d been hanging on for somewhere in the 22p range which I don’t now see coming.

Looks like this will improve efficiency and customer offering

https://www.buildersmerchantsnews.co.uk/SIG-opens-new-London-warehouse/49627

That article uses the words could and may. That indicates they know nothing. That article could have been written that way about a large number of shares at this moment in time especially for companies in a negative cash position which this wasn’t at the last update. The update put out to announce the reopening of branches in Ireland stated they had fully stocked up and suppliers were supporting them to keep on top of stocks. If there was a significant issue those suppliers wouldn’t have been paid and they would be protecting their own backs at this moment and not supplying.

Our biggest risk comes at the moment from bad debts from our own customers which is again a position all companies are currently in.

We will only find out the true position when the horse speaks...

During these extraordinary times, we hope you have all remained safe and well over the last number of weeks. Below we have outlined our return to work framework for Northern Ireland and the Republic of Ireland.

Northern Ireland: SIG Belfast, SIG Omagh will re-open on May 11th

Republic of Ireland: SIG Dublin, SIG Cork, and Ballymount Head Office will re-open on May 18th

We are well stocked with all the leading products and our suppliers are ready and waiting to replenish supply lines as needed. There may be some additional lead times on non-standard or lower volume products, so please contact your sales representative as soon as possible to discuss any orders that you think you will require in the coming weeks.

Please also ensure that your account is paid up to date, so that your orders can be processed without any delay. Our Accounts Receivable team are fully operational during the current trading shutdown and will be happy to discuss your account with you.

All our branch locations will strictly adhere to Health & Safety guidelines and maintain Social Distancing etiquette for the foreseeable.

We thank you for your ongoing business and look forward to resuming our full operations.

Take care and stay safe.

Likewise, decided to add more due to the drop. Added at 27p.