Profits lift for Sheffield-based SIG as firm cuts operating expenses by £39m
Insulation and building products supplier SIG has seen its profits rise as the firm continues in its bid to cut costs.
The Sheffield-based firm said it expected underlying operating profit to land at around £32m for the year ending 31 December, £7m higher than the prior year and in line with market expectations.
SIG said that its restructuring and productivity initiatives had contributed to an expected year over year underlying reduction of around £39m in operating expenses.
In December 2025, as part of the early phase of a portfolio review, SIG said it had closed one of its smaller UK businesses, Mayplas, as it did not “have the ability to deliver sustainable profitable growth in the future”.
In a statement issued to the London Stock Exchange, SIG said that it had continued to make “good progress” on its operational initiatives, including those to “drive efficiencies in cost and working capital”.
It added that most notably, its UK Interiors and Benelux businesses had continued to benefit from the “self-help” programmes put in place last year.
Speaking on the announcement, Pim Vervaat, chief executive officer of SIG, said: "In 2025 the Group delivered a robust trading performance in continued difficult market conditions. I have been impressed with the energy, commitment and knowledge of the many people I have met across the Group during my first 100 days.
“SIG is well positioned in markets that continue to have strong long-term growth drivers. The operating leverage benefits when markets return to growth will be significant, and further opportunities for self-help have been identified, including through procurement.
“In 2026 we aim to deliver further financial and strategic progress, and I look forward to working with the Board and all the SIG management teams in driving substantial value over time.”
His comments came as the group also announced that its full year like-for-like sales were expected to remain flat, with revenues of £2.6bn
SIG said it expects to report net debt as at 31 December 2025 of around £518m, including leases.
The company said that demand in all its markets had remained “well below historical levels”.
It added that European construction remained “at a low point in the cycle and with longer than anticipated delays to the start of meaningful recovery”.
The firm said that against this backdrop, its businesses continued to “outperform and in almost all cases take share within their end markets”.
SIG’s Insulation and Drylining business, which forms the majority of its UK Interiors arm, also had what the company described as a “particularly strong year from a sales perspective”.
The segment grew eight per cent in the first half, three per cent in the second, and five per cent for the full year.
SIG added that in the fourth quarter of 2025, the firm removed the separate management structure which was supporting its UK Specialist Markets businesses.
The company said that the changes in management would allow it to “better exploit the opportunities in these smaller specialist businesses, including synergies across our own portfolio”.