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SIG Plc Shares Fell 10.8% on the Mixed Half-Year Trading Update

Analyst Team trader
Updated 5 Jul 2023

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.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


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.

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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.


YOUR CAPITAL IS AT RISK. 76% OF RETAIL CFD ACCOUNTS LOSE MONEY.


The AskTraders Analyst Team features experts in technical and fundamental analysis, as well as traders specializing in stocks, forex, and cryptocurrency.