As a result, the Sheffield-based group said annual pre-tax profits will be no less than market consensus of £85.8m.
The group said trading improved as the year progressed, with like-for-like sales up 2.5 per cent in the second half compared with a 3.5 per cent decline in the first half, which was hit by bad weather.
For the full year, like-for-like sales fell by 0.5 per cent, with Mainland Europe down 1.5 per cent and the UK and Ireland up by one per cent.
Excluding SIG Energy Management, like-for-like sales in the UK increased by four per cent.
SIG’s net debt is expected to be £120m at the end of 2013, which includes £17m of expenditure on acquisitions during the year.
At its half year results presentation in August the group announced that it had identified £3.9m of annual savings with an associated exceptional charge of £5.6m, and that further measures were expected in the second half of the year.
SIG said it subsequently identified £5m of additional efficiencies in the second half, thereby increasing its total savings target to £9m, of which 40 per cent was realised in 2013.
The total exceptional charge, which also includes £3m of costs associated with the closure of Builders Express, is now expected to be around £19m in 2013.
SIG said it expects construction activity in the UK residential market to remain buoyant, with the non-residential sector continuing to be subdued.
In Mainland Europe construction markets are expected to remain variable.
Analyst Mike Allen at Panmure said: “SIG has delivered a solid year end trading update, essentially confirming that it is confident of hitting consensus adjusted pre-tax profits for 2013.
“Revenues are higher than forecast reflecting solid trading patterns in December and favourable foreign exchange, with net debt slightly lower due to good cost control.”