January 8, 2019 / 7:21 AM / 6 months ago

SIG reports lower 2018 revenue on sluggish construction markets

(Reuters) - Building materials supplier SIG Plc (SHI.L) on Tuesday reported a 1.4 percent fall in group revenue from continuing operations for the year, hit by a slowdown in construction markets in UK, France and Germany.

The company — which supplies insulation, energy management and roofing products — said group like-for-like revenue fell 2.3 percent and expects to report an adjusted pretax profit of about 75 million pounds ($95.75 million) for the year ended Dec. 31.

SIG, which mainly operates in UK, France and Germany, has been grappling with a slowdown in its home market where people and businesses alike are jittery about making investments ahead of Britain’s exit from the European Union.

“The UK construction environment became increasingly challenging in the second half of 2018,” the company said.

SIG warned on Tuesday that commercial construction demand in Britain was dampened by macro-economic uncertainty and falling house prices.

The FTSE mid-cap firm also said construction markets across mainland Europe slowed in the second half, particularly in France and Germany.

Like-for-like revenue from mainland Europe, which accounts for a lion’s share of the total, fell 0.7 percent in 2018. UK and Ireland growth slowed by 5.7 percent.

Reporting by Samantha Machado, Noor Zainab Hussain and Muvija M in Bengaluru; Editing by Shounak Dasgupta

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