(Alliance News) - Shares in SIG PLC slumped on Monday after it warned full-year operating profit would be below current City expectations.
The Sheffield-based supplier of insulation, roofing, commercial interiors and construction products said market conditions have remained challenging in the calendar year to date.
Like-for-like sales in May and June to date are down around 7%, similar to that seen in the first four months of the year, but behind expectations, SIG said.
SIG said softness in the building and construction sector has been most notable in French and German markets, and in the end markets of its UK Interiors business.
As a result, SIG expects 2024 full year underlying operating profit to be in the range GBP20 million to GBP30 million, below the current analyst range.
SIG put the analyst range at between GBP36.7 million to GBP43.0 million, as of Friday.
In the first half, SIG expects to report underlying operating profit of between GBP10 million to GBP12 million.
Shares in SIG fell 11% to 24.47 pence in London on Monday.
SIG said it continues to perform well relative to its markets and is also continuing to drive cost reductions and efficiency initiatives.
These support continued expectation of a stronger second half performance and will help drive higher profitability as markets recover, it added.
Cash performance to date remains in line with expectations, SIG stated.
First half results will be published on August 6.
By Jeremy Cutler, Alliance News reporter
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SIG (SHI)