Partner Article

SIG sales improve in ‘tough’ market

A GATESHEAD based construction products firm is confident it will reach £61.3m pre-tax profits after sales rose by 3% in the last four months.

In a stock market update, SIG said its end markets had stabilised with aggregate sales boosted by a “gradual improvement” in residential construction markets.

Sales in the UK in constant currency terms are down 3% compared to the previous year, offset by a stronger performance in mainland Europe where sales are up by 1% since the end of June, compared to the same period last year, and up 6% in the second half.

France, Germany and central Europe have seen the biggest growth while trading remains challenging in the Benelux countries.

An official spokesperson said: “Although residential construction is expected to show modest improvement, and private sector non-residential activity should stabilise during the course of the first half of the year, there is nevertheless some downside risk to consumer confidence and spending as a result of Government fiscal and austerity measures being taken across Europe.”

“Markets are expected to remain competitive and gross margin pressures are unlikely to ease.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .