Shares of SIG Plc (LON: SHI) surged 10.7% after the company announced that it expects 2020 losses to be on the lower end of estimates and that it could return to profitability in the second half of 2021.
The company which supplies building materials in the UK, Germany, France and Ireland among other countries said that like-for-like revenues in Q4 2020 were up 4% as compared to 2019, following a 24% decline in H1 2020.
SIG Plc expects to report a full-year loss of £57-61 million with the majority of the loss being accumulated in H1 2020 where it recorded a £43 million loss.
The roofing and insulation materials supplier expects total revenues of £1.87 billion subject to audit having included revenues from its Building Solutions division, whose revenues were previously excluded since it is a non-core unit.
SIG noted that its Exteriors division was the strongest performer in Q4, especially in the UK and France, while its Building solutions unit also returned to growth.
The company’s good fortunes are directly tied to the rebound witnessed across the UK construction sector in early December according to a recent survey. The firm also appointed a new CEO who has focused heavily on reviving sales and increasing margins in efforts to return the company to profitability.
SIG Plc operations are still continuing despite the UK entering a third national lockdown last week since construction activities were exempted from the lockdown restrictions.
SIG share price
SIG Plc shares today surged 10.67% to trade at 34.2p having rallied from Friday’s closing price of 30.9p