Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
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.
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?
SIG is and remains paralyzed: they don't have enough money for operating resources. In the last 5 years they have done too many restructurings, which means they cannot give their customers the desired service. They lost many skilled employees, have hardly any stock... Hence the policy of low prices, which sinks them further into the swamp. Customers drop out because of poor service. Competitors anticipate growing market prospects much more quickly.
I expect them to sell a lot of companies in Europe in order to completely withdraw from the British and Irish markets. That could perhaps be a turning point.
No matter what company, they always announce it more positively than the reality. Above all, shareholders should not be alarmed.
I do not comment on the figures and circumstances in the U.K. but on the mainland they continue to lose market share and competitors are doing noticeably better.
"Challenging" circumstances are therefore a disguise for "I'm not completely comfortable with it".
I remain convinced that SIG will withdraw from the mainland in 2025 or 2026.
In the past, they sold at decent margins. Currently they sell at very low margins, sporadically probably loss-making.
Explanation: Their goal (mainland Europe) is to double their turnover by 2025. However, they have lost a lot of credibility in recent years (staff turnover, no stock, not keeping promises). Those two things force them to sell at very low margins, otherwise they won't succeed.
Conclusion: they are trying to double their turnover to sell all their companies in Europe by 2025. Then hopefully they can pay dividends.
This is simply an overview of the price increases that the manufacturers are implementing as a result of the increased raw material prices. Each distributor receives these lists, and the percentages are the same everywhere. Broadly speaking, you can say that the price increases (>35% over a year) will increase turnover proportionally. But it all depends on the prices at which it is ultimately sold. So this document says nothing at all.
What do you expect me to do? Post market sensitive documents in a chat box? If you want to have proves, start doing research in the market. That will be the only possibility. AS i am still in construction business, I see what are the Everyday. It's your own right to believe it or not.
Question: if bussiness is as good as SIG mention in their reports, why is the share price still low¿ Maybe other groups are more interesting? Maybe main shareholders have more information than small shareholdes?