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SIG PLC shares rose on Friday after the company reported increased annual revenue and a narrowed loss for 2021 and said it was trading ahead of ‘ahead of plan’ this year.
Shares were up 5.5% at 39.26 pence each on Friday morning in London.
SIG is a Sheffield-based supplier of insulation, roofing, commercial interiors and construction products.
In 2021, the company narrowed its pretax loss to £15.9 million from £194.6 million in 2020.
This was on a revenue rise of 22% to £2.29 billion from £1.87 billion the year before.
SIG credited this growth to a strong recovery from the impact of Covid-19 in 2020. The effective implementation of its Return To Growth strategy, market share gains, margin discipline, and inflationary tailwinds also contributed to the result, it said.
The company reported that it is trading ‘well’ and ahead of its plan to date, helped by a continuation of the robust demand seen in late 2021.
‘This, together with the effectiveness of our supply chain management and commercial agility, gives the board increasing confidence over the full-year performance. We expect to be free cash flow neutral for the year, before returning to sustainable free cash generation thereafter, enabling us to continue to invest in and drive our strategic goals,’ SIG said.
The company said it is confident in achieving a 3% group operating margin for 2023 and growing it towards 5% in the medium term.
Looking ahead, SIG affirmed that it has the strategy in place to deliver long-term, sustainable, and profitable growth.
It also noted that it does not have any direct exposure to Russia or Ukraine, and is currently not seeing any ‘significant’ impact on its business arising from the conflict.
‘2021 was a pivotal year - accelerating progress on our strategy has returned the group to profitability ahead of expectations, delivering above-market growth rates and consistent margin improvement, the result of record performance in France and Poland, and strong turnaround in the UK,’ Chief Executive Steve Francis commented.
‘In uncertain times, SIG demonstrated in 2021, as it has in previous decades, its ability to manage successfully through inflationary and volatile market conditions, thanks to our strong relationships with suppliers and customers, and the quality of our people.’
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