SIG shares tumble on profit warning
Sharecast
Published Oct 12, 2023 11:48
SIG shares tumble on profit warning
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
Read more on Sharecast.com
Get The App
Written By: Sharecast
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.