SIG sees stronger second half

INSULATION and roofing group SIG said its first-half profit will beat forecasts thanks to a rebound in sales in the second quarter, but the company sounded a note of caution over the rest of the year.

By The Newsroom

Published 9th Jul 2010, 10:39 BST

The Sheffield-based group, which sells insulation and other construction materials, said its underlying pre-tax profit will be "above market expectations" despite a four per cent drop in its sterling-denominated sales to 1.29bn.

The company, which started operations as Sheffield Insulations in the UK and has expanded to 11 countries across Europe in the past two decades, said sales recovered in May and June after a cold weather-induced downturn in the first quarter.

"Notwithstanding the encouraging sales development in its main businesses in the second quarter, SIG's management remains appropriately cautious about prospects for the remainder of the year," the group said.

SIG also said its UK insulation and interior business will continue to face challenges in the short-term.

Shares in SIG closed at 104.5p on Thursday, giving the group a market value of 591.6m.

Sheffield Europe