Finance
SIG sees recovery in second half of 2025 after 2024 profit slumps 53%
Published by Global Banking and Finance Review
Posted on March 5, 2025
2 min readLast updated: January 25, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on March 5, 2025
2 min readLast updated: January 25, 2026
SIG forecasts a market recovery in late 2025 after a 53% profit slump in 2024, driven by strong construction demand despite economic challenges.
By Raechel Thankam Job and Chandini Monnappa
(Reuters) -The CEO of British building materials supplier SIG said on Wednesday that he expects to see continued market recovery in its key UK, German and France markets in the second half of 2025, sending shares up, after the firm posted a 53% fall in annual underlying profit.
While slower-than-expected interest rate cuts and stubborn inflation are some factors keeping customers from buying new homes or undertaking home-improvement projects, SIG CEO Gavin Slark said in a post-earnings call that underlying demand for construction, housing and infrastructure remains very strong.
SIG shares, which fell 2.7% early on Wednesday, reversed course and rose as much as 4% to 12.28 pence. SIG shares are down 60% in the last 12 months.
Considering the current share price and that it is performing relatively well in a challenging market environment, there appears to be considerable operational leverage for potential growth as markets recover, Investec analyst Aynsley Lammin said.
Lammin added that from this perspective, investing in the shares seems like a promising opportunity.
SIG reaffirmed its 5% operating margin guidance for the medium term. For 2024, SIG's like-for-like sales were down 4% and it has taken several measures to limit impact from slowing demand including cutting 430 jobs and shuttering 17 underperforming branches.
Underlying operating profit for 2024 came in at 25.1 million pounds ($32 million), in line with analysts' estimate of 25.2 million pounds, according to a company-compiled consensus.
(Reporting by Raechel Thankam Job and Chandini Monnappa in Bengaluru; Editing by Subhranshu Sahu, Mrigank Dhaniwala, Philippa Fletcher and Mark Porter)
SIG's CEO expects continued market recovery in the UK, German, and French markets in the second half of 2025.
SIG's underlying operating profit for 2024 fell to 25.1 million pounds, representing a 53% slump compared to the previous year.
Slower-than-expected interest rate cuts and stubborn inflation are keeping customers from buying new homes or undertaking home-improvement projects.
SIG reaffirmed its 5% operating margin guidance for the medium term despite the challenges in the market.
SIG shares fell 2.7% early on Wednesday but later rose by as much as 4%, although they are down 60% over the last 12 months.
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