Distribution giant SIG plc has shown a return to underlying profit in its results for the financial year ended December 31 2021.
The rise was driven by market share gains and margin discipline in what remains a challenging market, and was ahead of expectations. Group like-for-like sales were up 24% on prior year, and 8% up on non Covid-19 affected 2019; growth in the second half was 15% vs 2019
The Sheffield based firm reported underlying pre-tax profit of £19.3m in 2021, up from a £71.6m loss in the previous year as it hailed progress in its “return to growth” strategy.
Pointing to growing market share and margin discipline SIG said that underlying revenue for the year reached £2.2bn, increased from £1.8bn.
SIG’s chief executive officer Steve Francis said the results were ahead of expectations and also said the firm was trading ahead of plan so far in 2022. “2021 was a pivotal year – accelerating progress on our strategy has returned the Group to profitability ahead of expectations, delivering above market growth rates and consistent margin improvement, the result of record performance in France and Poland, and strong turnaround in the UK.
“In uncertain times, SIG demonstrated in 2021, as it has in previous decades, its ability to manage successfully through inflationary and volatile market conditions, thanks to our strong relationships with suppliers and customers, and the quality of our people.
“SIG is back to winning ways, and we look forward to 2022 and beyond with confidence.”
In the UK’s SIG’s interiors business narrowed underlying operating losses from £45.3m to £2.5m, driven by increased trading volumes, and its exteriors business returned to underlying operating profit of £25m, up from a loss of £7.3m.