Construction products distributor SIG plc is expecting its full-year results to be “significantly ahead” of previous expectations, on the back of rising demand and cost inflation.
The company reported on Friday (April 29) that group sales for the quarter to March 31 were up 25% at £641m. Group sales for the UK businesses were 23% up on 2021 for the quarter at £641m for the first quarter, with inflation estimated to have added about 19% to group growth over the period.
Steve Francis, Chief Executive, said: “The first four months have seen markedly stronger growth than anticipated, driving positive margin momentum across all our countries of operation. Our decentralised model, with 433 branches in seven countries providing strong local specialist expertise and superior stock availability, continues to gain ground and to show resilience in market conditions that remain challenging. Demand for our sustainable construction offerings remain strong. The three acquisitions made during the last 18 months are performing well and this is an area of increasing strategic focus for us.
“Although it is relatively early in the year, and notwithstanding the current macro-economic and geo-political environment, the strength of our recent trading gives us the confidence that we will now reach our initial margin target of 3% and return to cash generation this year, ahead of schedule.”