SIG expansion plans on course
Building materials group SIG saw its revenues rise nearly 8% in 2011 and pre-tax profits swell 27%.
Sales from continuing operations were up by 7.8% to £2,744.8m. Growth was driven by three main factors: improved trading conditions, with market volumes increasing by about 1% on 2010; product price inflation of 3% across the group; and market outperformance of about 3%.
UK sales were up 3.9%.
Underlying pre-tax profits reached £81.7m, up from £64.2m in 2010.
SIG opened a further 18 new branches during 2011, including four in the UK, seven in France and four in Germany. It intends to open between 15 and 20 new branches a year over the medium term.
Chief executive Chris Davies said: "We are pleased with these results and the progress we are making. I would highlight in particular the success of our organic growth strategy, with new branches moving into profitability more quickly than anticipated.
"During 2011 the group delivered on a number of key objectives. Operationally, we continued to outperform the market while improving gross margins and securing additional efficiency savings. Strategically, we increased focus on our three core markets of insulation & energy management, interiors and exteriors by divesting non-core operations. Financially, we improved returns and further strengthened our balance sheet.
"We enter 2012 as a much leaner, stronger and more focused organisation. Sales per day in constant currency so far this year were around 1% ahead of strong prior year comparators, despite the impact of severe weather across mainland Europe in February this year.
"Given the current uncertainties in the macroeconomic environment, we continue to expect market volumes to be slightly down overall in 2012. However, we have a solid platform on which to build and are targeting further market outperformance, with new branches expected to make a significant contribution to future growth."
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This article was published on 14 Mar 2012 (last updated on 14 Mar 2012).