Member Info for xSIGemp

Exact!

I'm still in the same market, but for a company that invests and values ​​people.

And then I see how SIG, as a competitor, is even trying to undercut purchasing prices to generate revenue. I think they're going to sell everything in the EU or close down to refocus on the UK.

10 years ago, 2 september 2015, SP was 187.8. ==> minus 94.5% in a decade.

10 years of successive restructurings, panic-mongering, and numerous CEOs with impressive stories and plans to match.

SIG acquired healthy companies with strong reputations in Europe. Now, all that's left is a smoking ruin, with disillusioned employees who were fooled for years. Complete exodus, no market or product knowledge left, and just box-pushers generating only revenue without profit.

Oops!

Was not an answer for Sandyman, but to 2Reincarnated.

@sandyman:

If my aunt had balls, she'd be my uncle. And if she had 4 wheels, she'd be a limousine.

How many times did you predicted that SP "will rise" for about the last 2 years?

Optimism is good, realism might be better.

You describe the situation as it is: they WERE market leaders, but through ivory tower policies they have driven almost all employees to their competitors. They are rubbing their hands: they have knowledge and stock, and are preferred by the manufacturers.

I suspect that you are also an ex-SIG colleague.

@Teddy100: which divisions you think are profitable? And what about UK vs Europe divisions?

I have a pretty good view on SIG EU but not in UK.

Already in 2021, 2reincarnated claims that the SP will rise, that SIG will improve, that he overheard conversations between people from CD&R in the metro......

I'm waiting for the moment when he is absolutely right!

Keep dreaming!

Last week, SIG Benelux closed 8 of their 11 warehouses with immediate effect. Staff is on the street and customers are suddenly faced with a closed door.

Then there is a branch in Belgium that has been making a loss for a number of years.

Is this the famous swan song?

Belgium en Holland were in the past their best branches.

Last week the figures of Belgium were published: for every €100 in turnover they book a net loss of 12 to 16%.

So keep dreaming about that 60p.

So:

-Turnover = down

-trading margin = down

-LFL = down

-Debts = up

Also:

- Their competitors are making progress.

-SIG can't even reduce their debts. wants to save more on operational costs ==> even more customers will go to competitors.

But, according to Gavin Shark, with rose-colored glasses:

- "Our results in the first half reflect the prolonged challenging market conditions we are currently facing across most of our European businesses,"

- "....the board believes the group remains well positioned to benefit from the market recovery when it occurs."

Any more sand?

I think this will happen: SIG will sell ​​the company in separate parts.

I think that from 2025 onwards the European companies will be sold. Some will be closed down earlier because they have been loss-making for years.

@Robo666

How do you remove fat from a skeleton?

As a former SIG employee, I speak from experience: in the last 10 years, so much has been saved and restructured that proper functioning is no longer possible. It is not without reason that many employees now work elsewhere and took the customers with them.

Believe me: It's all about horrible management.

Highly paid checked suit managers, out of touch with the customers and the market who think that the quality of a company is only determined by accounting juggling with figures.

And then they dare to start all their communication with "SIG plc ("SIG", or "the Group"), a LEADING supplier of specialist insulation and building products across Europe" ==> they have been the big losers for almost 10 years !

Certainly! Here's an original story with additional context:

Once upon a time in a small farming community, there lived a diligent and hardworking farmer named John. Despite his expertise in tending to his land and animals, he felt a growing desire to understand the intricacies of economics and bookkeeping. Eager to expand his knowledge, he enrolled in a course that promised to teach him the secrets of financial management.

As John delved deeper into the world of numbers, he couldn't help but notice the significant amount of money he spent on feeding his workhorses. It troubled him to see a substantial portion of his earnings being consumed by their upkeep. Determined to optimize his farm's financial health, he decided to analyze the numbers with a critical eye.

To his dismay, John discovered that the cost of feeding the workhorses was indeed eating away at his profits. Fueled by his desire to save money, he made the decision to blindly cut back on their food, assuming they would adapt to the change. Little did he know the dire consequences that awaited.

As the days passed, the horses grew weaker and lethargic. Their once shiny coats dulled, and their spirits diminished. John's cost-cutting measures had taken a toll on their well-being. Despite his intentions to improve the farm's financial situation, he had unintentionally sacrificed the very foundation of his productivity.

Regret washed over John as he witnessed the inevitable decline of his workhorses. Their strength waned, and soon their lives were lost. In his pursuit of financial stability, John had inadvertently destroyed the very assets that powered his farm.

This poignant tale serves as a cautionary metaphor for blind shareholders who mismanage a company. It highlights the importance of considering the long-term consequences of cost-cutting measures without compromising the vital resources that sustain a business.

The claim that the poor figures are due to "challenging market conditions" is a euphemism. How come their competitors are growing?

"Improve productivity and cost structure"? SIG has done nothing else in the last 5 years, reorganized and saved. As a result, many employees with knowledge and experience have closed the door of SIG. That works like a boomerang because they now work for their competitors (including myself).

SIG has cut back so much on everything that in practice they do not have the necessary resources for the essence: serving their customers. They sometimes even sell at a loss, but turnover alone cannot buy bread.

My prediction: in 2025 or 2026 they will have to divest their activities on the mainland and focus on the UK and Ireland. I don't know what that will do to the share price.

This is exactly what I have been predicting for 3 years.

SIG is a distributor of building materials (including insulation) that has run into financial problems due to incorrect policies. They have no money to build a workable stock. They no longer have the added value they used to have (knowledge, stock, etc.) due to successive reorganizations and management changes. That's why they have to drop their pants to their ankles to be able to sell anything.

It is not due to "challenging market conditions". After all, their competitors are doing well.

The next step will be to divest all their activities on the mainland (2025?) to have capital back. Whether that will yield a dividend remains a question.

Kingspan is a manufacturer. SIG is a distributor.

I don't really understand what you mean, but it interests me.

Are you saying that CD&R's influence makes it impossible to take smaller companies to the market?

Or do you mean that this will make it difficult for SIG to sell its brands?