SIG plans to target further cost savings

The company, which supplies insulation, roofing and specialist construction materials to Europe, said its underlying profit before tax for the six months to the end of June fell 1.9 per cent to £34.7m, versus £35.4m in the same period last year.

SIG said its sales were flat after having been hit by the weakening economy and adverse weather conditions in Europe. It also raised its interim dividend by 33.3 per cent to 1 pence per share.

“We continue to expect market volumes to decline slightly this year and against this background are focused on improving the group’s performance, outperforming our markets and implementing further self-help measures,” chief executive Chris Davies said in a statement.

SIG, which operates in 11 European countries, said it was targeting further annual operating cost savings of £7m in 2013, adding that some £2.3m of these savings had been made in the first half of the year.

It said its like-for-like sales so far in the second half of 2012 had been in line with the prior year, following a slight decline in May and June, and it had seen little effect from the London Olympics on its operations.

The company also said that its outlook was unchanged from July when it said it expected uneven demand to continue during the second half.