SIG returns to FY underlying profit in 2021

(Sharecast News) - Roofing and insulation supplier SIG said on Friday that it had returned to an underlying profit in 2021, driven by market share gains and margin discipline in "challenging" supply markets. SIG stated full-year underlying revenues had increased 22.4% to £2.29bn, while like-for-like sales growth was up 24.3% and gross margins expanded 120 basis points to 26.3%.

As a result, the London-listed firm swung from an underlying operating loss of £53.1m in 2020 to an operating profit of £41.4m in 2021. Pre-tax profits were £19.3m, a marked improvement when compared to the prior year's £76.1m pre-tax loss, and the company reported earnings per share of 0.03p, up from the 10.3p loss per share reported twelve months prior.

Net debt, on the other hand, shot up from £238.2m at the end of 2020 to £365.0m as of 31 December.

Chief executive Steve Francis said: "2021 was a pivotal year - accelerating progress on our strategy has returned the Group to profitability ahead of expectations, delivering above market growth rates and consistent margin improvement, the result of record performance in France and Poland, and strong turnaround in the UK.

"Growth momentum, resilience of our businesses, and experienced leadership all underpin our confidence in the organic growth path towards 5% underlying operating margin in the medium term."

Francis added that SIG was now back to its "winning ways" and that he was looking forward to 2022 and beyond "with confidence".

As of 0820 GMT, SIG shares were up 10.96% at 41.30p.