SIG plc, a leading European supplier of specialist insulation and building products, has issued a trading update indicating a downward revision of its profit forecast for 2024.
SIG shares were down 10% after the company alluded to persistent challenging market conditions as the primary driver behind lowering profit expectations for the year.
The Group reports that like-for-like sales have declined by approximately 7% in May and June to date, mirroring the trend observed in the first four months of the year.
This performance falls short of previous expectations, prompting the Board to revise its full-year underlying operating profit forecast to a range of £20m-£30m, below current analyst projections.
SIG attributes the subdued demand to ongoing softness in the building and construction sector, with the impact most pronounced in the French and German markets, as well as in the UK Interiors business.
While the company’s operations in Poland, Ireland, and UK Exteriors continue to demonstrate more robust demand, overall group sales have underperformed expectations in recent weeks.