Insulation industry news from Global Insulation

UK: SIG has appointed Andrew Allner as its chairman with effect from 1 November 2017. He will also take the role as a non-executive director. He succeeds Leslie Van De Walle who first announced his intention to retire in March 2017. Van De Walle will now step down as chairman and retire as a director on 31 October 2017.

Allner is currently the chairman of Marshalls, the Go-Ahead Group and Fox Marble Holdings, and a non-executive director at Northgate. Marshalls has announced that it will now start the process to recruit a successor to Allner and
that he will resign from the Marshall's board, once the new chairman is established in position. He was previously Non-Executive Director of AZ Electronic Materials, until 2014, and CSR, until 2013. Previous executive roles include Group Finance Director of RHM and chief executive officer (CEO) of Enodis. He also held senior executive positions with Dalgety, Amersham International and Guinness. Allner is a chartered accountant, former partner of Price Waterhouse and graduate of the University of Oxford.

UK: SIG’s revenue grew by 8.1% to Euro1.6bn in the first half of 2017 due to favourable currency exchange rates and sales in Mainland Europe. Sales in Mainland Europe rose by 42% in the period boosted by recovery in the construction markets particularly in France.

UK: SIG’s sales rose by 0.3% on a like-for-like basis, the building materials distributor has said in a trading statement. Sales rose by 11% year-on-year to Euro3.4bn in 2016 but they were mainly driven by foreign exchange rates and acquisitions. In the UK & Ireland like-for-like sales increased by 1.1%, with SIG Distribution up by 1.2% and SIG Exteriors down by 1.5%. In mainland Europe life-for-like sales declined by 0.5%, with France and Germany down by 2.0% and 1.3% respectively.

"2016 was a disappointing year for SIG. While the competitive environment, particularly in the UK, was challenging, our transformational change programme, although taking the group in the right strategic direction, distracted us somewhat from our customers,” said chief executive Mel Ewell. He added that the company is planning to focus on customers, place added emphasis on sales growth and reduce its leverage in 2017.

SIG will announce its full year results for 2016 on 14 March 2017.

UK: Doug Robertson will retire as Group Financial Director and from the board of SIG in the first quarter of 2017. He will be succeeded by Nick Maddock, currently Chief Financial Officer at McCarthy & Stone. Precise dates will be announced once determined. Robertson has worked at SIG since 2011.

UK: SIG’s revenue has risen by 11% year-on-year to Euro1.61bn for the first half of 2016 from Euro1.45bn in the same period in 2015. Its operating profit rose by 37% to Euro53.8m from Euro39.3m. The insulation producer attributed the increase in sales revenue on acquisitions and foreign exchange effects.

“The group delivered a solid first half performance with good progress on its Strategic Initiatives offsetting the twin pressures of variable trading conditions, particularly in Mainland Europe, and a competitive market environment,” said Stuart Mitchell, Chief Executive. He added that the company had observed a slowing of UK construction market activity following the country’s decision to leave the European Union. However, SIG’s risk to Brexit should be minimised as its mainly buys and sells its products within each country.

UK: SIG’s revenue has fallen by 1.4% year-on-year to Euro3.13bn in 2015 from Euro3.36bn in 2014. Its profit before tax fell by 11.2% to Euro113m from Euro128m. It blamed the fall in revenue on foreign currency effects.

“While making good progress on the Strategic Initiatives and infill acquisition programme, we were disappointed by the Group’s 2015 performance, having been adversely affected by weak trading conditions in Mainland Europe and the UK RMI market, as well as movements in foreign exchange,” said Stuart Mitchell, Chief Executive of SIG.

The building materials producer’s sales revenue for its insulation and energy management division fell by 3.1% to Euro1.49bn from Euro1.54bn. Sales by region increased overall in the UK and Ireland in 2015 due to the new build residential sector in the UK. In mainland Europe sales fell in 2015 notably in France, Germany, Austria and Poland.

In 2015 SIG acquired Multijoint SA in Switzerland and Ainsworth Group in the UK. Both companies are distributors of insulation and associated materials.

UK: Building materials supplier SIG expects its profit for the first half of 2013 to fall year-on-year due to the extended winter, according to a trading update. In the first half of 2012 SIG reported a profit before tax of Euro41m. In the first half of 2013 it is likely to be Euro34 – 36m. The company plans to reduce costs to support full-year profit.

SIG reported that in mainland Europe sales per day fell by around 4% in constant currency. Sales in the UK more than halved, falling by around 1%, due to the end of the Carbon Emissions Reduction Target (CERT) scheme and the slow start of the Green Deal.

"There are signs that market conditions are starting to improve in the UK, although construction activity in mainland Europe remains weak," said SIG in its report.

UK: Roofing and insulation materials supplier SIG has returned to profit but it warned that its UK business is beginning to feel the bite of government austerity cuts.

The Sheffield-based group reported pre-tax profits of Euro9m in the year to 31 December 2011, compared to losses of Euro97m in 2010, as it outperformed its markets and benefited from restructuring. In the UK and Ireland, sales increased by 3.6% despite it reducing branch numbers by 34 to 330, as trade was boosted by a slight increase in its residential markets and by strong commercial demand in the south east of England.

Despite a return to profit, SIG warned that a reduction in public sector demand towards the end of the year will be more pronounced in 2012. The group sold three of its UK businesses in June 2011 as part of its plan to focus on its core markets of insulation and energy management, interiors and exteriors.

Underlying profits across the group were up by 27% to Euro98m. Revenues rose by 7.1% to Euro3.2bn, driven by a strong performance in mainland Europe, which accounts for more than half of SIG's business. Sales growth across the group has slowed to 1% in the first weeks of 2012 and it says it expects its overall markets to contract 2012 although it will continue to gain market share.

The group recently announced it is to close more of its stores, including 15 in the UK and Ireland, as part of plans to save Euro6m. It will also continue to open new sites, mainly under the Builders Express format in London and the south east having opened four over the past year.

UK/Ireland: Roofing and insulation materials supplier SIG took the gloss off a strong first-half performance in 2011 by signalling a slowdown for the rest of the year. The company said that it still expects to make progress in 2011, but that growth will 'moderate' in the second half of the year due to a combination of tough comparative numbers and general economic factors.

The Sheffield-based group reported a slump in consumer spending in the UK and Ireland on areas such as home improvements. It said that reduced government spending was also putting pressure on public sector work.

Total revenues rose by 9% year-on-year to Euro1.57bn in the first half of 2011 with underlying profits 84% ahead at Euro38.3m. The company said that the UK and Ireland saw a 'noticeable softening in demand' towards the end of the second quarter of 2011.