Building supplier SIG plc has returned to profit thanks to strong performance in Poland and France, and a turnaround in the UK.
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 told investors that underlying revenue for the year reached £2.2bn, increased from £1.8bn.
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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. However, no dividend will be paid for 2021.
He said: "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.
"Growth momentum, resilience of our businesses, and experienced leadership all underpin our confidence in the organic growth path towards 5% underlying operating margin in the medium term.
"I'm proud that SIG has a long-established focus on energy efficient solutions, and we will play a leadership role in the shift to sustainable construction.
"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.
SIG's French structural insulation and interiors business, trading as LiTT saw underlying revenue increase by 16% to £195.3m, up from £168.1m.
And across its Polish business, increased customer levels, branch openings and price inflation contributed to underlying revenue of £186.7m, up from £149.5m.
A €300m bond offering and a £50m revolving credit facility set up in November was said to have provided a strong liquidity position.
Mr Francis added: "In the near-term we are anticipating some remaining impact from material shortages, but these are gradually abating. We have started the year well, and ahead of plan, helped by a continuation of the robust demand seen in late 2021.
"This, together with the effectiveness of our supply chain management and commercial agility, gives the Board increasing confidence over the full year performance.
"We expect to be free cash flow neutral for the year, before returning to sustainable free cash generation thereafter, enabling us to continue to invest in and drive our strategic goals."
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