SIG Says U.K. Construction Market Showing Signs of Recovery
SIG Plc (SHI), a British distributor of insulation to builders, said there are signs that the U.K. construction market is starting to improve after being hampered by prolonged winter weather at the start of the year.
First-half sales per day in the U.K. and Ireland increased by 2 percent at constant currency, excluding energy management operations, the Sheffield, England-based company said in a statement today. SIG reiterated it will make further progress in 2013. Total revenue was 2.6 billion pounds ($3.9 billion) last year.
A recovery in the U.K. is a boost for SIG as it grapples with weakened construction markets in mainland Europe. Shares of Bovis Homes Group Plc (BVS) rose to their highest price in almost six years yesterday after the homebuilder reported a “significant improvement” in first-half profit. The Bloomberg EMEA Home Builders Index has advanced 37 percent this year.
“While SIG’s trading update is slightly behind our expectations for the first half, driven by mainland Europe, we take comfort from the reiteration of guidance for a year of progress,” Robert Eason, an analyst at Goodbody, said in a note today.
Shares of SIG traded 1.6 percent lower at 168.6 pence as of 8:20 a.m. local time.
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