CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 84% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.

SIG expects profits to increase this year

By Rob Griffin

08:32, 21 September 2021

Insulation being fitted
SIG optimistic on outlook – Photo: Shutterstock

UK building materials supplier SIG expects profits to improve during the second half of the year – despite the ongoing impact of material shortages and cost price inflation.

In a statement to the London Stock Exchange, the Sheffield-based company reported revenue up £32% to £1.11bn ($1.5bn) for the six months to the end of June 2021.

It also hailed the success of its ‘Return to Growth’ strategy, with the UK profitable and record periods achieved in France and Poland.

Successfully managed

The company said the underlying pre-tax profit came in at £3m, compared to a loss of £53.8m the previous year, while statutory pre-tax losses were £1.6m.

It also said material shortages and cost price inflation had been successfully managed so far, with “minimal impact” felt during the first half of the year.

The results were enough to nudge its share price up 1.18% to 50.45p during early trading on the London markets.


CEO Steve Francis praised the “energy, resilience and commitment” of staff in the face of challenging circumstances such as Covid-19 issues and industry-wide supply challenges.

“The strong revenue growth across our broad product offering, together with disciplined margin management, has been key to delivering an earlier and stronger profit than previously anticipated,” he said.

He also pointed out that trading in July and August was solid, with continued profit improvement expected during the second half of the year – despite material shortages and cost price inflation.


1,951.45 Price
-1.320% 1D Chg, %
Long position overnight fee -0.0184%
Short position overnight fee 0.0102%
Overnight fee time 21:00 (UTC)
Spread 0.30

Oil - Crude

71.76 Price
+2.090% 1D Chg, %
Long position overnight fee -0.0201%
Short position overnight fee -0.0018%
Overnight fee time 21:00 (UTC)
Spread 0.03


14,559.50 Price
+0.650% 1D Chg, %
Long position overnight fee -0.0255%
Short position overnight fee 0.0032%
Overnight fee time 21:00 (UTC)
Spread 1.8


0.53 Price
+2.010% 1D Chg, %
Long position overnight fee -0.0753%
Short position overnight fee 0.0069%
Overnight fee time 21:00 (UTC)
Spread 0.00488

“As a result, providing the disruption from these headwinds does not worsen, we now anticipate full year underlying operating profit will be ahead of our prior expectations,” he added.

Return to Growth momentum

Francis believes the momentum behind its ‘Return to Growth’ strategy was positioning the group well.

He pointed to the “continued strength of our balance sheet”, along with the positive trading momentum, for providing a strong platform for sustainable, profitable growth and cash generation.

“We have growing confidence in our ability to take advantage of both strong near‐term demand and healthy long‐term fundamentals, including market tailwinds from sustainability initiatives,” he said.

Benefit from regulatory changes

Charlie Campbell, an analyst at Liberum, believes SIG is extremely well placed to benefit from the significant changes being made to building regulations.

“The regulatory tailwinds materially improve SIG’s growth outlook, in our view, as they should drive higher demand and help SIG to achieve its growth strategy,” he said.

Improving the energy efficiency of new buildings is already a key priority, he pointed out, but the performance of existing buildings is also expected to come under increasing scrutiny.

“SIG’s core products, insulation and roofing, are critical to improving the energy efficiency of residential and commercial buildings,” he added.

Read more: SIG raised to ‘buy’ at Liberum on brightening business prospects

Related topics

Rate this article

Capital Com is an execution-only service provider. The material provided on this website is for information purposes only and should not be understood as an investment advice. Any opinion that may be provided on this page does not constitute a recommendation by Capital Com or its agents. We do not make any representations or warranty on the accuracy or completeness of the information that is provided on this page. If you rely on the information on this page then you do so entirely on your own risk.

Still looking for a broker you can trust?

Join the 535.000+ traders worldwide that chose to trade with

1. Create & verify your account 2. Make your first deposit 3. You’re all set. Start trading