SIG upbeat about 2011

INSULATION company SIG said trading in the first two months of 2011 was well ahead of last year.

The Sheffield-based company said it expects the decline in private non-residential construction to level out in the first half of this year and it intends to start paying dividends again at the half year stage.

Chairman Leslie Van de Walle said: “Demand trends are expected to gradually stabilise during the coming year and against this backdrop we are committed to improving our performance in 2011.”

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He added that the group expects to see the modest growth in residential building seen last year continuing in 2011.

“However, Government expenditure cuts are expected to cause public sector new construction activity to decline as the year progresses, counteracting mild growth in the private sector, particularly in the UK,” he said.

Trading in the first two months of 2011 was in line with management’s expectations and well ahead of the particularly weak, weather-affected comparative sales levels of last year.

SIG said it will continue to make carefully selected organic investments, particularly in renewables and carbon reduction, and in expanding its branch network in both the UK and Mainland Europe.

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“The board believes that SIG is well positioned to make progress through 2011,” said Mr Van de Walle.

Full-year 2010 underlying per-tax profits rose three per cent to £62.5m despite a two per cent decline in revenue to £2.67m.

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