PRESS
RELEASE
20 August 2009
INTERIM RESULTS FOR THE SIX MONTHS ENDED 30 JUNE 2009
SIG plc is a leading European specialist supplier of insulation, exteriors, interiors and specialist
construction products.
As outlined in the trading update on 10 July, trading conditions in the first six months of
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2009 have been exceptionally challenging
Group sales were £1,345m, down 10% on the first half of 2008, with like for like† sales
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down 12.7%. At constant currency, total sales were down 15.0% and like for like sales
were down 17.5%
Total sales in the UK and Ireland were £667.1m, down 21.5% on H1 2008,
o
against a background of much weaker market demand
Total sales in Mainland Europe increased by 5.2% to £677.6m, down 5.5% on a
o
constant currency basis, as extremely cold weather in the first quarter curtailed
building site activity
Underlying* operating profit was £35.0m, a decrease of 58.3% from the first half of 2008
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(£84.0m)
Throughout the first half, management has continued to move decisively to adapt its cost
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base to the increasingly challenging trading conditions
Actions taken in the first half have resulted in annualised net savings of £39m at a
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one-off cost of £18m
Total net savings from actions taken from Spring 2008 to 30 June 2009 amount to
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£74m
Further fundamental restructuring programmes commenced in the second half of
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2009
Total net cost savings arising from the cost saving and restructuring programme
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since it began in 2008 amount to £92m at a one-off cost of £67m
Underlying profit before tax was £21.9m, a decrease of £46.4m (67.9%) from the £68.3m
·
reported in the first half of 2008
Strong cash generation of £79m (H1 2008: outflow of £17m) reflected the focus on
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working capital management and a reduction in the Group's net capital expenditure
Significantly strengthened financial position following the successful equity raising of
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£325m (net of expenses) in April 2009
Les Tench, Chairman, commented:
"Trading conditions in the first half of 2009 have been exceptionally challenging in all of our end
markets, which negatively impacted Group trading. We expect trading in the near term to remain
difficult and management therefore continues to run the business tightly, reducing costs and
focusing on cash management while defending the Group's leading market positions and gross
margins. Following the equity raise in April, SIG is well placed to trade through the challenging
times ahead and benefit fully from the upturn when it arrives."
