Sharecast - SIG (LON:SHI) told investors that it now expects to deliver full-year underlying profits of £50.0m to £55.0m, principally due to "weaker" short-term demand. Previous consensus was for the company to deliver roughly £74.2m in operating profits.
The London-listed company said group revenues fell 2% in the three months ended 30 September, while year-to-date revenues were 1% lower year-on-year.
SIG also detailed that it had seen a "further softening in demand" for its products in September, which affected the new build residential sector, and said it anticipates that "weaker demand conditions" will persist through the rest of 2023.
Sales to Ireland and Benelux were down 13% and 8%, respectively, while UK interior sales fell 3%, French interior sales dropped 2% and exteriors fell 4%. On the other hand, SIG reported a 7% jump in sales in Poland.
"Notwithstanding short-term market weakness, we continue to progress the strategic and operational initiatives which underpin our ambition for the group. We remain confident in our ability to further improve our market positions, and to continue to improve our profitability when market conditions recover," said SIG.
As of 1015 BST, SIG shares had tumbled 12.50% to 29.75p.
Reporting by Iain Gilbert at Sharecast.com