SIG PLC on Wednesday said it swung to a pretax profit in 2022 and reported a rise in annual revenue, but said it expects weaker demand conditions in 2023.
Shares were down 8.5% on Wednesday noon in London at 38.42 pence each.
Sig is a Sheffield-based insulation, roofing materials and building products supplier.
The company swung to a pretax profit of £27.5 million from a loss of £15.9 million in 2021, as operating profit rose to £56.2 million from £14.0 million.
Revenue rose to £2.74 billion from £2.29 billion, driven by the pass through of product price inflation in all geographies and the impact of Sig’s strategic growth initiatives.
Particularly in the UK, revenue rose to £1.15 billion from £929.6 million a year earlier.
The firm declared no dividend for 2022.
It reiterated its commitment to return to paying a dividend ‘when it is prudent to do so’.
Chief Executive Officer Gavin Slark said: ‘Trading in the first two months of 2023 saw mid-single digit like-for-like revenue growth, with the continued effects of input price inflation more than offsetting year-over-year volume declines. Market conditions continue to vary across our geographic footprint, but overall we expect weaker demand conditions to prevail during 2023, offset by a continued tailwind from input price inflation, albeit the latter will continue to moderate further this year.’
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