Post-close Trading Update
SIG plc reported a first-half like-for-like sales decline of 1.5% due to challenging market conditions and poor weather, with underlying operating profit anticipated at approximately £10 million, down from £15 million in the prior year. Net debt stood at £532 million at June 30, 2026, with liquidity at £154 million. The company expects full-year 2026 underlying operating profit to be around £25 million, with no material market recovery anticipated in the second half. SIG has initiated an improvement plan targeting at least £100 million in cash generation and an annualised operating profit run rate improvement of £50 million by the first half of 2028.
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SIG plc ("SIG", or "the Group"), a leading supplier of specialist insulation and building products across Europe, issues a trading update for 1 January 2026 to 30 June 2026 (the "first half").
Group like-for-like ("LFL")1 sales declined in the first half (-1.5%) versus the prior year due to continuing challenging conditions in our major markets, which were exacerbated by poor weather conditions at the start of the year. The Group's performance improved in Q2 (LFL +1%) following a particularly weak Q1 (LFL -5%) with first half underlying2 operating profit anticipated to be c. £10m (H1 2025 £15m). Net debt at 30 June 2026 was £532m (including leases) with liquidity remaining strong at £154m despite a targeted inventory build ahead of raw material price increases.
Whilst trading in the first half improved sequentially, no material recovery in market conditions in H2 2026 is anticipated and, therefore, the Board now expects the FY 2026 underlying operating profit to be c. £25m. Liquidity levels are expected to remain healthy going forward and will benefit from the stronger seasonal cash generation profile in the second half.
The Group has developed an improvement plan assuming no market recovery in H2 2026 and FY 2027. The plan aims to generate cash of at least £100m, through a combination of business simplification, disposals, business improvement and working capital optimisation. It is also targeting an annualised operating profit run rate improvement of £50m by H1 2028. Further details of the plan will be shared with the H1 2026 results on 4 August 2026.
- Underlying represents the results before Other items. Other items relate to the amortisation of acquired intangibles, impairment charges, net restructuring costs, cloud-based ERP implementation costs, costs associated with refinancing and other specific items.
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