SIG reveals plans for equity raise of around £150m as it delivers full year results

SIG, which is a supplier of specialist building products and services to trade customers across the UK, Ireland and Mainland Europe, has, announced its full year 2019 results.

It also announced the strengthening of its capital structure, including a proposed equity raise of approximately £150m.

Funds managed by Clayton, Dubilier & Rice LLC will invest up to £85m in the company as part of the equity raise.

The company said that, consistent with previous guidance, underlying profit before tax, including businesses held for sale, pre IFRS 16, was £41.9m, compared with £74.5m the previous year.

The statutory loss before tax from continuing operations was £112.7m, compared with a profit before tax of £10.3m the year before.

In a statement, SIG said: "The board has taken decisive actions to address 2019 performance - appointed a new leadership team and developed a new customer-centric strategy that reprioritises sales."

Steve Francis, chief executive officer, commented: "Since my appointment as CEO on 25 February, we have been developing a new strategy and organisational model which focuses on people, growth and active industry leadership.

"The essence of our new strategy is re-connection with our people - employees, customers, suppliers and the communities in which we do business - we are a local, sales and service-driven business.

"We have also been navigating the effects of COVID-19. I am encouraged by how robustly we have operated in the most testing of circumstances and would like to thank all our people for their resilience and fortitude in the face of this pandemic.

"After nearly a decade of contraction, which has included disposals, rationalisation, debt and cost reduction, it is now time to focus on how to grow SIG and rebuild our core USPs of customer proximity, service and expertise.

"We play an important role in the construction industry, providing a channel through which suppliers can bring their products to a fragmented customer base conveniently and efficiently. I firmly believe that our new strategy for growth will provide the basis, not only for the restoration of profit and cash conversion, but also serve as a foundation to play a leading role in our industry in the years to come.

"The new management team will empower our customer-facing people and promote an entrepreneurial spirit throughout the group, thereby re-connecting with our customers and suppliers, re-energising our highly talented employees, and re-setting the growth ambition of SIG.

"I am pleased to welcome Clayton, Dubilier & Rice, an experienced business builder in our industry, as an investor, and we look forward to working with the CD&R team."