SIG flags resilient year despite flat like-for-like sales

(Sharecast News) - SIG said in an update on Tuesday that its full-year results for 2025 reflected resilient execution and material cost savings against a difficult construction market backdrop, with underlying operating profit expected to rise year-on-year and performance broadly in line with market expectations. The London-listed group said it expected to report 2025 revenue of £2.6bn, with like-for-like sales flat versus the prior year, as stronger trading in the first half was offset by softer conditions in the latter part of the year.

Underlying operating profit was expected to be around £32m, some £7m higher than in 2024, supported by restructuring and productivity initiatives that delivered an underlying reduction of approximately £39m, or 6%, in operating expenses.

Reported operating expenses were expected to fall by around £20m year on year, including £18m of savings from restructuring actions.

The group said it expected to report a free cash outflow of about £12m, a marked improvement from a £39m outflow in 2024, and ended the year with gross cash balances of around £81m and total liquidity of £171m, including an undrawn £90m revolving credit facility.

SIG said reported group sales were down 1% for the year, reflecting a net negative impact from exchange rates, working days and branch network changes.

Like-for-like sales rose 1% in the first half but fell 2% in the second half as subdued demand persisted across most markets and softened further towards the end of the year, particularly in the UK, Germany and Ireland.

Pricing pressure remained elevated throughout the year, resulting in a net 1% reduction in pricing despite modest input cost inflation.

In the UK, interiors and roofing both delivered positive like-for-like growth for the full year, while performance across continental Europe was mixed, with growth in Poland and the Benelux region offset by declines in France, Germany and Ireland.

The group said demand across all markets remained well below historical levels, with European construction at a cyclical low and recovery taking longer than anticipated, although SIG continued to outperform its end markets and take share in most geographies.

Net debt as at 31 December was expected to be around £518m including leases, compared with £497m a year earlier, with leverage of approximately 4.7 times, unchanged year on year.

The group said it expected to maintain healthy liquidity through 2026.

Alongside the trading update, SIG outlined its Vision 2030 strategic framework, targeting the creation of a focused pan-European platform capable of delivering operating margins of 3% to 5% through the cycle, alongside predictable cash generation.

Near-term priorities included further cost and efficiency programmes, improved procurement and continued investment in commercial initiatives, alongside a review of the business portfolio to sharpen focus on higher-return growth markets.

"In 2025 the group delivered a robust trading performance in continued difficult market conditions. I have been impressed with the energy, commitment and knowledge of the many people I have met across the group during my first 100 days," said chief executive Pim Vervaat.

"SIG is well positioned in markets that continue to have strong long-term growth drivers.

"In 2026 we aim to deliver further financial and strategic progress, and I look forward to working with the board and all the SIG management teams in driving substantial value over time."

At 1008 GMT, shares in SIG were up 0.52% at 9.7p.

Reporting by Josh White for Sharecast.com.