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18 Jun 2009 07:00
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SIG plc
18Β June 2009
TradingΒ Update
SIG plc ("SIG" or "the Group"), a leading European supplier of insulation, interiors, exteriors and specialist construction products today announces the following tradingΒ updateΒ together with guidance on the expected performance of the Group for theΒ financialΒ yearΒ endingΒ 31 December 2009.
TheΒ IMSΒ on 13 May 2009Β stated thatΒ extremely cold weather conditions in theΒ first quarter, in particular in Mainland Europe, allied to subdued or reduced demand in many of SIG's market segments and countries of operation, hadΒ resulted in an exceptionally challenging trading environment in the first part of 2009 with pricing pressures accompanying lower volumes.Β Since 13 May trading conditions have remained very challenging.Β Across all businesses in theΒ UKΒ volumes remain subdued whilst pricing pressures and a move towards a more unfavourable product mix are holding back performance, with theΒ UKΒ interiors businessΒ particularly affected.Β European marketsΒ haveΒ not achievedΒ the usual level of seasonal improvementΒ inΒ the last four weeks.
TheΒ recent strengthΒ ofΒ SterlingΒ against the Euro, whilst having a beneficial effect on theΒ SterlingΒ balance sheetΒ will,Β if it continues,Β impact on the translation of Euro earnings.
As stated on 13 May 2009, the Group continues to run the business tightlyΒ with aΒ focus on realigning the cost base to changing market circumstances. TheΒ measuresΒ implemented at the time of the interim management statement brought the totalΒ annualisedΒ savings achieved since the commencement of the programme to Β£62Β million.Β Additional measuresΒ have beenΒ implementedΒ in the last four weeksΒ and these are expected to deliver a further Β£8Β millionΒ of cost savingsΒ on an annualised basis.Β Further measuresΒ have been preparedΒ for implementationΒ imminently.
As a result of the continuing difficult marketΒ conditionsΒ referred toΒ above, the Board now expectsΒ thatΒ Underlying Profit Before Tax*Β for the financial yearΒ endingΒ 31 December 2009 will beΒ around theΒ bottom end of theΒ currentΒ range of marketΒ expectations**.
Following the equity fundraising completed on 9 April 2009 the Group's balance sheet remains strong andΒ the BoardΒ is confident that the Group will continue to operate within its covenants throughoutΒ 2009.Β
Notes:
* Underlying Profit Before Tax isΒ beforeΒ amortisation of acquired intangibles, impairment charges, gains and losses on derivative financial instruments and restructuring costs.
**Β The currentΒ range ofΒ analysts'Β forecasts for Underlying Profit Before Tax for the year to 31 December 2009Β isΒ Β£63 million to Β£99 million.
Enquiries:
Β
|
Chris Davies, Chief Executive GarethΒ Davies, Finance Director |
SIG plc |
0114 285 6300 |
|
|
Faeth Birch/Gordon Simpson |
Finsbury |
020 7251 3801 |
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