SIG Plc Reports H1 Trading Update: Profit Rises, But Demand Remains Soft
Why we think this is neutral
The trading update from SIG Plc presents a mixed picture. On the positive side, the company reported a 25% year-on-year increase in underlying operating profit for the first half, which is a strong performance. However, the company also noted that demand across all markets remains well below historical levels, and there has been no notable pick-up in demand during the period. This suggests the company is facing some headwinds in the current market environment. Additionally, the company reported an increase in net debt, which is generally seen as a negative. Overall, the trading update contains both positive and negative elements, leading to a neutral sentiment assessment.
Key Points
- Group revenue up 1% on a like-for-like basis
- Underlying operating profit expected to be around £15m, up from £12m in H1 2024
- Demand across all markets remains well below historical levels
- No notable pick-up in demand seen during the period
- Group continues to execute on strategic initiatives to drive cost savings and productivity
Summary
SIG plc, a leading supplier of specialist insulation and building products, has issued a trading update for the first half of 2025. The company reported a 1% increase in like-for-like revenue and a 25% rise in underlying operating profit to around £15m. However, the company noted that demand across all markets remains well below historical levels, with no notable pick-up seen during the period. The Group continues to execute on its strategic initiatives to drive cost savings and productivity, and to improve cash generation. The company's 2025 full year outlook remains unchanged.