SIG (LSE:SHI), a leading supplier of specialist insulation and building products across Europe, said first-half like-for-like sales fell 1.5% year-on-year, prompting a downgrade to its full-year profit guidance.
The board now expects full-year 2026 underlying operating profit of approximately £25m, down from previous expectations, as it anticipates no material recovery in market conditions during the second half.
The first-half decline masked a sharp swing within the period: like-for-like sales dropped 5% in the first quarter before improving to growth of 1% in the second quarter.
First-half underlying operating profit is expected to be around £10m, down from £15m in the same period last year, with the weak start attributed to challenging conditions in SIG's major markets and poor weather.
Net debt stood at £532m including leases at 30 June, with liquidity at £154m despite a targeted inventory build ahead of anticipated raw material price increases.
SIG expects liquidity to remain healthy going forward, supported by the stronger seasonal cash generation typically seen in the second half.
