The SIG plc (LON: SHI) share price fell 10.8% after releasing a trading update on its performance over the six months to 30 June 2023. The update comes ahead of the official release of its half-year results on 8 August 2023.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.
The European supplier of specialist insulation and building products revealed that it generated revenues worth £1,424 million, representing flat like-for-like (LFL) revenue versus last year. The data also reflect volume declines offset by input price inflation.
WELCOME BONUS - Free Share Bundle When You Invest £50!
Open a UK Investment Account: Shares, ISAs, Managed Portfolio
Invest in 15,000+ shares and ETFs. Open an account now, invest at least £50, and you’ll get a free share bundle worth between £40 and £200. T&Cs apply.
IG
View Offers
Empfohlener Broker
Multi Asset Platform
Top Broker Recommendation
- IG Top-tier regulation – Read our Review
- eToro Wide range of instruments available to trade – Read our Review
YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY
The company experienced softer demand in May and June as market conditions remained challenging and variable, particularly in France and Germany. The company expects its underlying profits to be about £33 million, indicating its slim profit margins.
SIG’s productivity initiatives partially offset demand weakness and the inflationary impact on operating costs. The company expects the same initiatives to boost its profitability in H2 2023 amid uncertainties regarding the demand recovery during H2.
Therefore, the company’s management board expects it to deliver full-year underlying operating profit within the current market expectations but towards the lower end of that range. The company noted the positive impact of price input inflation on its overall performance.
SIG expects weak and uncertain demand conditions throughout the rest of the year, along with a continued but further moderating revenue tailwind from input price inflation. The company noted that recent trading conditions had made it more cautious about the chances of demand improving.
However, the company expects its productivity initiatives to underpin its profitability in H2 2023, combined with a specific property move. The company noted that price input inflation had added about 9% to its topline revenue growth, which could be lesser in H2 2023.
SIG expects price inflation to decline slightly in H2 2023 against a high comparable figure recorded in H2 2022. Therefore, SIG’s share price decline was expected, given the anticipated weakness in H2 2023.
*This is not investment advice.
SIG share price.
The SIG share price plunged 10.82% to trade at 30.66p, from Tuesday’s closing price of 34.38p.
eToro is a multi-asset investment platform. The value of your investments may go up or down. Your capital is at risk.