SIG PLC, a leading pan-European supplier of specialist building products, reported its half-year results for the six months ended 30 June 2025. Here’s a summary of the key points
### **Financial Highlights**
**Revenue**£1,304.4 million, a 1% like-for-like (LFL) growth compared to H1 2024, reflecting continued market outperformance despite subdued demand.
**Underlying Operating Profit**£15.4 million, up from £11.7 million in H1 2024, with an operating margin of 1.2%.
**Net Debt**Increased to £523.5 million from £476.6 million in H1 2024, including £333 million in net lease liabilities.
**Free Cash Outflow**£9 million, improved from £22 million in H1 2024, due to robust cash performance and productivity initiatives.
**Statutory Loss**£34.4 million after tax, compared to £14.2 million in H1 2024, primarily due to impairment charges and other items.
### **Operational and Strategic Highlights**
**Market Performance**Outperformed local markets with LFL sales growth of 1%, driven by strong commercial execution and targeted product range extensions.
**Cost Savings**Achieved £21 million in underlying operating cost savings compared to H1 2024, with £38 million in permanent annualised cost savings since H2 2023.
**UK Interiors Turnaround**Delivered 8% LFL sales growth and returned to operating profitability, with a £4 million improvement in underlying operating profit.
**Strategic Initiatives**Continued focus on modernisation, digitalisation, and specialisation, including e-commerce platform launches in Germany and France.
### **Segment Performance**
**UK**5% LFL sales growth, with strong performance in UK Interiors (8%) and UK Roofing (6%).
**France**(5%) LFL sales decline, impacted by weak new build residential demand.
**Germany**Flat LFL sales, outperforming a declining residential market.
**Poland**3% LFL sales growth despite competitive pressure.
**Benelux**3% LFL sales growth, with turnaround efforts showing early benefits.
### **Outlook**
**Full-Year 2025**Outlook unchanged, with no notable pick-up in demand expected in H2.
**Focus**Continued emphasis on productivity, efficiency, and commercial initiatives to drive performance.
**Market Recovery**Well-positioned to benefit from market recovery when it occurs, given operational gearing.
### **Management Commentary**
Ian Ashton, CFO, highlighted the Group’s robust trading results, cost discipline, and strategic progress, reaffirming the 2025 outlook despite challenging market conditions.
### **Key Risks and Uncertainties**
Macroeconomic uncertainty and prolonged challenging trading conditions remain key risks.
Sensitivity analysis and stress testing indicate the Group can withstand significant revenue declines without breaching covenants.
### **Non-Statutory Measures**
**Leverage**Increased to 4.9x from 4.3x in H1 2024.
**Operating Margin**Improved to 1.2% from 0.9% in H1 2024.
**Free Cash Flow**Outflow of £9 million, improved from £21.9 million in H1 2024.
### **Conclusion**
SIG PLC demonstrated resilience in H1 2025, outperforming subdued markets through strategic initiatives and cost discipline. While near-term challenges persist, the Group remains focused on long-term growth and is well-positioned for a market recovery.