SIG sales rise by three per cent

saw sales rise by 3% in the last four months compared to the same period last year and has warned that its markets remain "very competitive".

The company said its end markets had stabilised thanks to a "gradual improvement" in residential construction markets and it was confident of achieving pre-tax profits of 61.3m for the year.

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

In a statement the company 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."