SIG shares rose more than 6% Friday as British construction equipment supplier reported strong third quarter sales and said its full-year operating profit would exceed current forecasts.
Like for like (LFL) sales grew 17% in the three months ended September compared to the third quarter of 2020 and rose 9% versus the pre-Covid comparator year of 2019, a trading statement said.
Quarterly growth lagged the 33% increase reported in the first half of the year. However, the first half was skewed by the pandemic. On a comparative basis, H1 2021 LFL sales rose 1% versus H1 2019.
The company reported £1.1bn revenue and a £3m pre-tax profit for the first half.
The Sheffield-based group said its Distribution business was the principal driver of growth, while its French and British Exteriors businesses, which supply roofing materials and cladding, performed strongly. Poland and Ireland also saw good results.
SIG also said it continued to pass along cost inflation through price hikes to improve profitability in the third quarter.
The trading statement also said that while supply issues were still a challenge for many product groups, the outlook for materials had become clearer and its order books were building.
“We are mindful of the potential impact of these shortages should the situation persist for an extended period, but remain highly confident in the effectiveness of our supply chain management and commercial agility,” SIG said.
The company’s share price is up more than 60% in the year to date.
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