SIG reports 8% increase in sales

BRITISH building materials group SIG has reported an 8% year-on-year increase in group sales for the first four months of the year.

However, the Sheffield- headquartered insulation products specialist, which employs around 300 people in its Irish operation, tempered that level of growth by saying it met with management’s expectations and was measured against a weak, weather-affected corresponding period in 2010.

In a trading update, the company said growth had moderated from March and is expected to moderate further in the remainder of 2011, “due to a combination of stronger comparators and the potential impact of UK Government expenditure cuts”.

“The board continues to believe that the group is well-positioned to make progress through 2011,” the company stated.

In SIG’s core British and Irish division, and in mainland Europe, where the company now has a significant presence, all divisions showed annualised growth in the first four months of 2011, “with the exception of Interiors Manufacturing, which continues to be impacted by weak trading conditions in the non-residential sector, and Energy Management,” according to the company.

Management claimed that it made good progress in continental Europe — specifically in France, Germany and Poland; but added that conditions remain challenging in its Benelux operations.

Yesterday, Irish-based analysts were forecasting a positive trading statement and annual general meeting message from Irish insulation products specialist, Kingspan, when it updates this morning.

Goodbody Stockbrokers’ Robert Eason said: “Given the weak comparatives, it’s also likely to report a strong start to the year. Therefore, the focus will be on how the order books look, in terms of seeing where sales trends will go, and the extent to which the company has been able to pass on higher raw material prices.”