SIG revenue jumps on UK and Ireland
Published 17/05/2014 | 02:30
British building materials supplier SIG reported a 9.4pc jump in revenue from continuing operations in Ireland and the UK in the first four months of the year, as a string of small acquisitions mitigated the impact of a strong pound.
The company's stock rose as much as 3pc yesterday to rank among the top percentage gainers on the London Stock Exchange.
SIG, which supplies roofing materials, insulation and interior fittings, said trading in the UK and Ireland, which accounts for slightly less than half of its revenue, continued to be stronger than in mainland Europe.
Sheffield-based SIG made eight acquisitions last year, mostly in the roofing materials business and most of them in Britain, according to the company's 2013 annual report.
"We anticipate further bolt-on acquisitions as we progress through the year," Panmure Gordon analyst Mike Allen wrote in a note. He has a "buy" rating on the stock.
SIG, helped by growing demand for energy-efficient buildings, said like-for-like sales also increased 9.4pc for the first four months of the year, compared with a decline of 2.6pc in the same period last year.
At 13.1pc, the increase in like-for-like sales was stronger in the UK and Ireland than in mainland Europe, which clocked growth of 6pc.
In March, the UK government said it would extend a popular mortgage scheme aimed at boosting construction of new homes. The "Help to Buy" scheme was a bid to free up the mortgage market.