Last checked at 28 Feb 2018 07:00
28 February 2018
SIG plc
("SIG" or "the Group")
Disposal of SIG Building Systems
SIG plc, a leading distributor of specialist building products in Europe, today announces that it has agreed terms to sell the trade and assets of SIG Building Systems ("Building Systems"), the modular offsite construction business of SIG, to Urban Splash Modular Limited ("Urban Splash"), a residential housing developer specialising in UK regeneration projects.
The divestment is part of the ongoing management of the Group's portfolio and is in line with the Group strategy set out by the new management team in November last year. Following the closure of Metechno in 2017 and the closing of the divestment announced today, RoofSpace, a panelised room-in-roof manufacturer serving the UK new build residential market, will be SIG's only remaining offsite construction business.
In the year ended 31 December 2016, Building Systems reported sales of £9.2m and made a loss before tax of £5.7m. Gross assets (before write down to recoverable amounts) transferred on the sale are valued at £4.5m.
The consideration for Building Systems is a nominal £1. The Group will incur cash costs of £4.9m over the period to 31 March 2020, which will be funded from the Group's existing resources. SIG expects to incur an associated exceptional charge in 2017 of approximately £7.9m relating to the divestment.
In addition to the sale of Building Systems, on 2 February 2018, the Group sold GRM, a small manufacturer of phenolic pipe insulation serving UK industrial and HVAC markets, to a subsidiary of Kingspan Group plc for an undisclosed sum.
The Group had not assumed any net contribution from these businesses in 2017 and accordingly overall expectations for underlying Group profitability for 2017 and beyond remain unchanged.
The Group will announce its full year results on Friday 9 March 2018.
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