Sig Share Discussion Threads

[elongate] 09/8/2022 09:19

Summary

GROWTH STRATEGY BEARING FRUIT AT SIG
9 Aug 2022 Yorkshire Business

SIG has reported a strong set of interim results with the listed specialist building products distributor hailing the impact of its growth strategy.
In the six months to 30 June 2022, underlying revenue at SIG rose from £1.1bn to £1.4bn, driven by the effective implementation of the company's Return to Growth strategy as well as the inflationary tailwind.  
Profitability continued to improve in the half, with underlying operating profit of £42.5m, up from £13.9m, and statutory operating profit climbing from £8m to £39.8m.
After the period end in July, SIG swooped for the immediately accretive acquisitions of Miers Construction Products in UK and Thermodämm in Germany.
SIG launched its Return to Growth strategy two years ago in response to a period of share loss and profit decline that pre-dated Covid. The strategy was designed to return SIG to 3 per cent group operating margin in two to three years, with a longer term goal of 5 per cent.
The business said it was "delivering on our plan ahead of expectations", having transformed our customer engagement, market share, profitability, financing, leadership bench strength, industry reputation and commitment to sustainability.
Chief executive Steve Francis said: "SIG is a structurally different business to two years ago - more specialist, more local, more productive, more flexible. Over this time, we have delivered above market performance and enabled a rapid return to robust profitability, along with a rhythm of steady progress. The first half of 2022 in particular saw significantly stronger growth than originally planned, which resulted in margin improvement across our operations.
"SIG today is resilient, flexible and sustainable: 80per cent of our products serve the insulation and building energy efficiency markets. We are by far the largest independent supplier in Europe of these products, which are needed now more than ever.
"Our strong market position, growth strategy and decentralised model will continue to enable us to navigate the pricing environment well and drive market share gains.
"In addition, our scale, diversification and resilience in uncertain markets mean that we are confident both in delivering the board's expectations for the year and in our growth path to 5 per cent operating margin in the medium term."

[elongate] 09/8/2022 08:03

The point is the recovery plan post recapitalisation ( and refinancing ) is proving effective.

‘We are delivering on our plan ahead of expectations, having transformed our customer engagement, market share, profitability, financing, leadership bench strength, industry reputation and commitment to sustainability. Since the start of Return to Growth, every business has gained share and improved margin (except Benelux, which represents four percent of Group sales), becoming more valuable to our customers and suppliers as a result.’

[cerrito] 09/8/2022 07:44

Pretty reassuring statement and I can go back to sleep with my holding here.
Saw the comment on some softness in the Repair, Maintenance and Improve market but did not get clarity as to how they see the future.. No doubt this will come out in the webinar, which I hope I will organize myself to watch

[zho] 05/8/2022 08:38

At the end of April SHI reported that "Group sales were 25% up on 2021 for the quarter to 31 March on a like for like ("LFL") basis. This represented a performance well ahead of previous expectations, with this momentum continuing into the month of April to date."

Towards the end of June, KGP reported a record H1 (with trading profits expected to be up 26% compared to 2021) but added that “We have seen the mood in most end markets deteriorate over the last two months with order intake volume down significantly on the May and June period in 2021 …”

So it's reasonable to expect a broadly similar story when SHI report H1 results next week.

[qsmeily456] 05/8/2022 07:53

The Bank of England, raising rates by 50bps yesterday, forecast a squeeze in living standards and a recession lasting five quarters, along with a rise in UK inflation to a remarkable 13%

[qsmeily456] 05/8/2022 07:31

Got 30p re test written all over it..🩳㊥1;🛩💥🌴🎄🌲🌳9315;

Recession round the corner with rising interest rates

[elongate] 04/8/2022 16:27

I see this press release on the Shi website. Alfons Horns is managing director of Sig Germany and WeGo Systembaustoffe. ( Sig’s German trading subsidiary I believe )

Wego acquires Thermodämm GmbH
04 Aug 2022
Please join us in congratulating our team in Germany on this recent acquisition and welcoming our new colleagues to Wego.

Founded in 2002, Thermodämm has built up a successful business specialising in flooring, heating screeds, and insulation systems.
This is an important acquisition for Wego as it strengthens its national market leadership in floor systems and enhances its customer and partner networks.
Our Germany Managing Director, Alfons Horn, said: “We are very proud to have Thermodämm GmbH join Wego. We now have talented colleagues on board who share our vision to grow future product ranges in floor systems, and drive market development in sustainable products and practices. This includes low-energy floor heating systems, modern screed flooring techniques and the Pump truck technology, which enhances our coverage of this technique in the South of Germany and, underpins our national market leadership in flooring.”
If you would like to know more, please contact Caroline Kilian [e-mail]

[elongate] 03/8/2022 14:47

Going some over the last month, despite economic forecasts. 18% up as I write.

[elongate] 25/7/2022 07:46

Moving on with second part of strategy. Acquisition of MCP. No mention as such, but indication from that is that Shi is on track with the recovery plan.
Cut and paste
‘If the ROIC is greater than the WACC, then value is being created as the firm invests in profitable projects. Conversely, if the ROIC is lower than the WACC, then value is being destroyed as the firm earns a return on its projects that is lower than the cost of funding the projects’

[elongate] 13/7/2022 10:30

Already out of date but ONS today.
“Construction grew by 1.5% in May 2022, following 0.3% growth in April. This is construction's seventh consecutive month of growth.”

[elongate] 13/7/2022 07:34

SIG builds compliance team

1 hour. Post-Grenfell concerns about marketing claims made by suppliers of building products has prompted SIG to set up a compliance department to keep a closer eye on its suppliers.

As a major distributor, SIG is keen to show support for the new Code for Construction Product Information.
The new management that arrived in 2020 is looking to supply more specialist product solutions, which make it harder for SIG staff to support procurement and installation decisions. The new compliance department will help ensure staff are giving customers the right advice and information, and supplying the right product for the right application.
Steve Marr, formerly procurement director, has been appointed compliance director, running a team of 11 compliance specialists.
This function within SIG UK builds on work already carried out as part of SIG Assured. SIG Assured focuses on ensuring that products supplied by SIG are legal and compliant to national UK standards. The compliance team is taking this further, including aspects of sustainability (notably environmental product declarations) and also working with the new Code for Construction Product Information. The code is an industry initiative that invites suppliers to sign up and, by doing so, promise not to misbehave in the sort of ways that had facilitiated the spread of the Grenfell Tower fire.


“At SIG UK we are about more than just price” said Steve Marr.


“We should also look to add value, providing assurance for our customers that the products they specify are compliant with all current regulations and performance standards. It is something of a relief to see that the subject of compliance is of increasing importance to our customer base and we are more than happy to support that move.”
Commercial director Andy Williamson added: “The construction industry needed to change. At SIG we are looking to do our part by ensuring we’re acting as a responsible supplier, sourcing and distributing products that are compliant, safe and appropriate.”
Steve Marr said there were three aspects to this responsibility: “First, we must ensure the products we manufacture are compliant in every respect. Second, we must provide our customers with assurance that the vast range of products in our inventory are supported by correct and legal documentation. Third we must ensure that our staff have the level of training and expertise needed to support decision-making by the customer,” he said.

Got a story? Email [e-mail]

Addendum. I do not think Shi ‘manufactures’ anything. An error in speech or reporting?

[zho] 01/7/2022 13:54

SHI to report interims on 9th August, 6 weeks earlier than last year, so I'm guessing they won't be giving us a TU this year (we had one on 14th July last year).

[zho] 29/6/2022 07:04

LORD TU this morning:

"Since we issued our full year results on 24 May 2022, demand for the Group's repairs, maintenance and improvement ('RMI') sector focused product offering has remained resilient and, notwithstanding inflationary pressures and the current macro outlook, the Group continues to trade in line with market expectations for the full year ending 31 December 2022 ('FY22')."

[elongate] 22/6/2022 09:50

Change of Adviser

SIG plc ("SIG") today announces the appointment of Investec Bank plc as joint corporate broker, to work alongside Peel Hunt LLP.

No mention of Jefferies. But perhaps they have not been pulling their weight.

[elongate] 20/6/2022 10:26

In house news. Can’t be bad though.

SIG Poland’s Bartosz Pilch wins 2022 B2B E-commerce Director of the Year award
20 Jun 2022

Congratulations to Bartosz Pilch, director of e-commerce and marketing, at SIG Poland who has been recognised at the 2022 E-Commerce Director of the Year awards.

The annual awards, organised by Izba Gospodarki Elektronicznej (Chamber of Electronic Economy in Poland), celebrate B2B and B2C digital professionals who display out-of-the-box thinking, efficiency, and leadership.
Bartosz Pilch was awarded the B2B e-commerce category in recognition of his professional excellence and success achieved at SIG Poland.

[elongate] 20/6/2022 08:33

And a record trading profit. But it’s not gone down well so far for Kingspan. No read across as yet.
Judging by the last trading update, Shi anticipate a similar scenario, with inflation broadly leading to greater overall revenue.
But it’s still all in the recovery plan for Shi, margin control, and returning to actual cash generation this year as they also anticipate.

[zho] 20/6/2022 06:43

KGP report H1 2022 trading strongly ahead of H1 2021 but say that "We have seen the mood in most end markets deteriorate over the last two months with order intake volume down significantly on the May and June period in 2021 although ahead versus the same period in 2019."

[peteret] 15/6/2022 15:36

Yeah I agree 50p + but why is this dropping so much compared to everything else.Has anyone got a reason

[sooty snipes] 15/6/2022 14:49

Looking at the last "significantly ahead" trading update on the 29th of April this share price is mental. Should we not be at 50p plus? Everything getting battered indiscriminately.

[elongate] 02/6/2022 09:44

It’s what happens. Shi is not immune to poor sentiment across the markets. But pleasingly it remains in business terms in an early recovery stage after bad management and correspondingly terrible results - and that and the recovery plan is working to it’s advantage even in these economic circumstances with performance ahead of expectations, and inflation not proving the burden it might. Shi will start making money this year, and having recapitalised and refinanced, cornerstoned by CD and R with their near 30%, will deploy that cash on further smaller acquisitions. It seems the next update will be at least in line with April’s outlook, which saw the price then go to 41p.

‘Outlook
Given the strong momentum seen through the early part of 2022, together with increasing visibility on the near-term trading outlook, the Board now expects the Group to deliver a full year performance SIGNIFICANTLY ahead of previous expectations.

Input cost inflation is currently higher than previously anticipated, as noted above, and expected to remain elevated in the near term. We expect that the resulting increase in revenue will more than offset any localised market softening.

In addition, we are confident that we will be able to maintain and build on the strong margin discipline that has been an important part of the recent progress made by the Group, with underlying operating margin for 2022 now expected to reach 3%. Furthermore, we now expect the Group to be cash generative in 2022.’

[peteret] 30/5/2022 18:29

This is ridiculousA solid company recovering after covid. The share price should be on the up .Supplying house builders who can sell houses before they are built. I'm buying loads more .Once Putin has come to his senses or when he realizes he can't win or gets overthrown .the war will end All shares will soar

[zho] 24/5/2022 07:30

LORD – decent looking results for calendar 2021 (revenues up 26.3%, adjusted eps up 58.4%) accompanied by confident outlook statement.

[trinid2] 11/5/2022 17:24

Ennismore have increased their short, but doubt that's what has hammered the price since the trading update.........other than that is a big order being filled??? Just seems very weird why the S.P is low, it should at least be in the 40s