SIG Reports Flat 2025 Sales Amid Difficult Market Conditions

SIG plc ("SIG", "the Group" or "the Company") today announces its results for the full year ended 31 December 2025 ("FY25" or "the year").

Key highlights

• FY25 results reflect continued strong commercial execution and productivity gains against a challenging market backdrop, particularly in the latter part of the year

• Group like-for-like¹ ("LFL") sales flat versus the prior year, with revenues of £2.59bn (2024: £2.61bn)

• Underlying² operating profit of £32.1m, up 28% versus the prior year (2024: £25.1m) and in line with market expectations

• Good progress on strategic actions, including those benefitting medium and longer term profitability:
  
  - Group's operating companies continue to perform well relative to their markets
  
  - Restructuring and productivity initiatives contributed to year over year underlying reduction in operating expenses of £39m, mitigating much of the near-term impact of lower volumes and operating cost inflationo UK Interiors' performance transformed with a £9m year over year improvement in operating profit in its core Insulation and Drylining business
  
  - Benelux delivered a £3.2m reduction in operating losses

• Underlying loss before tax of £20.0m; statutory loss before tax of £61.7m, reflecting £41.7m of Other items, including £29.7m of non cash impairments and £9m of restructuring costs

• Operating cash inflow³ of £43m and free cash outflow³ of £12m, reflecting strong progress on working capital initiatives

• Robust liquidity of £171m at year-end, consisting of cash balances of £81m (2024: £87m) along with undrawn RCF of £90m

• Year-end net debt of £518m (2024: £497m), including £323m (2024: £321m) of net lease liabilities; leverage unchanged at 4.7x 

Commenting, Pim Vervaat, Chief Executive Officer, said:

"In 2025 the Group delivered a robust trading performance in continued difficult market conditions, and good progress in improving the underlying performance and profitability of our businesses. Cost reduction initiatives delivered a £39m saving which enabled us to deliver 28% growth in underlying operating profit despite the challenging market backdrop.

"During my first five months at SIG, I have been impressed with the capability of our people and can see a clear opportunity to increase the value that the Group can deliver for shareholders, as outlined in our update in January.

"The Group is well positioned in markets that continue to have strong long-term growth drivers. The operating leverage benefits when markets return to growth will be significant, and further opportunities for self-help have been identified. We will focus on optimising both the business performance and the business portfolio in order to create a best-in-class growth platform for building materials distribution in Europe. In 2026 we aim to deliver further financial and strategic progress, and I look forward to working with the Board and all the SIG management teams in driving substantial value over time." 

Notes

1. Like-for-like is defined as sales per working day in constant currency, excluding completed acquisitions and disposals, and adjusted to exclude the net impact of branch closures and openings.

2. Underlying represents the results before Other items. Other items relate to the amortisation of acquired intangibles, impairment charges, net restructuring costs, cloud-based ERP implementation costs, costs associated with refinancing and other specific items.

3. Free cash flow is defined as all cash flows excluding M&A transactions, dividend payments, and financing transactions. Operating cash flow represents free cash flow before interest and financing and tax.

Source : SIG

Image : SIG

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