Building products distributor SIG says its turnaround strategy has brought more success in the shape of a big boost in underlying operating profit.
The listed firm hailed sales growth of 17%, resulting in revenues of £2.74bn and an increase in underlying operating profit from £41m to around £80m. SIG announced full year results for 2022 and said its "return to growth" plan - mounted three years ago - continued to drive positive results despite an easing off of demand and strong price inflation in the second half of the year.
Just over half of SIG revenues came from the EU which generated about £1.5bn compared with the UK's £1.1bn. Volumes were down in the UK due to what the firm called weaker market conditions and against particularly strong 2021 - although the domestic business was said to be moving towards its previous performance and market position under the turnaround plan.
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SIG said its performance came despite a £5m loss resulting from the administration of UK roofing contractor Avonside, which was one of its largest customers.
CEO Steve Francis, who is due to be replaced by Gavin Slark in February, said: "SIG's performance in 2022 demonstrated the resilience, flexibility and diversity of its pan-European business. Thanks to strong employee and customer engagement, the Group has continued to drive strong profit growth, even as market conditions became increasingly challenging as the year progressed.
"SIG now has strong foundations for the future, and the group remains well-positioned to benefit from the need for governments and end-customers to increase the sustainability and energy efficiency of buildings over time. Gavin and I are now completing a very smooth leadership handover, and I am confident that Gavin and the team will build on the progress made in the last three years."
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