SIG plc Reports Rise in Revenue and Profits for 2022
SIG PLC, reporting its 2022 full year results showed a 17% rise in revenue to £2.74bn across its whole operations and an 18% increase in gross profit. Underlying operating profit rose from £41m in 2021 to £80m in 2022.
The Sheffield headquartered company, which has 440 outlets in six countries employing 7000 people, sees 42% of its revenue coming from its UK operations.
2022 UK Results
The UK interiors business (specialist insulation and interiors) saw 23% sales growth to £703m from its 53 sites, while the UK exteriors (roofing and exteriors) operation posted a 7% rise in sales to £445m out of its 115 sites.
The company states that the UK Interiors business has now delivered a successful two-year turnaround, recovering market share and returning to profitability through consistent execution, better pricing discipline, and improving product mix.
UK Exteriors had a solid year of trading against some strong comparators and, as previously communicated, had a significant one-off bad debt write-off in the second half of the year following the collapse of Avonside, leaving around £5 million owed.
After a strong performance in the first half of 2022, the company says demand softened in the second half. Falls in revenue were offset by the paper volume increases as a result of inflation.
SIG plc CEO, Gavin Slark, who took up the position at the beginning of February 2023, said, “Trading in the first two months of 2023 saw mid-single digit like-for-like revenue growth, with the continued effects of input price inflation more than offsetting year-over-year volume declines. Market conditions continue to vary across our geographic footprint, but overall we expect weaker demand conditions to prevail during 2023, offset by a continued tailwind from input price inflation, albeit the latter will continue to moderate further this year.
“As a European market leader in the supply of specialist insulation, SIG is well-positioned to benefit from long-term structural growth drivers, notably sustainable construction. There is an increasing focus on the need to reduce building emissions, to increase energy efficiency and to use more sustainable materials .
“With a strengthened financial position, good strategic momentum, pan-European footprint, and a diverse portfolio with opportunity for growth, I am confident in our ability to manage short-term market weakness during 2023 while maintaining a focus on sustainable long-term value creation for all our stakeholders.”
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