SHI Sig Plc

5 March 2025

SIG plc

Full year results for the year ended 31 December 2024

 

SIG plc ("SIG", "the Group" or "the Company") today announces its results for the full year ended 31 December 2024 ("FY24" or "the year").

	2024	2023
Underlying revenue	£2,611.8m	£2,761.2m
LFL2 sales	(4)%	(2)%
Gross margin	24.5%	25.3%
Underlying1 operating profit	£25.1m	£53.1m
Underlying1 operating margin	1.0%	1.9%
Underlying1 (loss)/profit before tax	£(14.3)m	£17.4m
Underlying1 (loss)/earnings per share	(1.7)p	0.4p
Net debt	£497.3m	£458.0m
Statutory results	2024	2023
Revenue	£2,611.8m	£2,761.2m
Operating (loss)/profit	£(3.8)m	£4.0m
Loss before tax	£(44.8)m	£(31.9)m
Total loss after tax	£(48.6)m	£(43.4)m
Basic loss per share	(4.2)p	(3.8)p

 

 

Financial highlights

·    FY24 results reflect a robust performance in the face of ongoing challenging market conditions, supported by extensive cost and restructuring actions

·    Full year Group like-for-like² ("LFL") sales down 4%, with revenues of £2.61bn (2023: £2.76bn)

o Sequential improvement in H2 LFL sales performance to (2)%, vs (6)% in H1

·    Underlying¹ operating profit of £25.1m, in line with expectations

·    Good progress on strategic actions to benefit medium and longer term profitability, with efficiencies and productivity gains mitigating much of the near-term impact of lower volumes and operating cost inflation

o £32m reduction in reported year over year operating expenses, and £42m reduction before inflation and FX

·    Underlying¹ loss before tax of £14.3m; statutory loss before tax of £44.8m, reflecting £30.5m of Other items, including £13.4m restructuring costs, £5.3m refinancing costs and a £7.3m non-cash impairment in the UK Interiors business

·    Operating cash inflow³ of £4m and free cash outflow³ of £39m, reflecting lower profitability

·    Successful refinancing of €300m Bond and £90m RCF in October 2024 extended debt maturies to 2029 and ensured ongoing robust liquidity

·    Year-end net debt of £497m (2023: £458m), including £321m (2023: £327m) of net lease liabilities; year-end cash balances of £87m (2023: £132m) along with undrawn RCF of £90m

Operational and strategic highlights

·    UK Roofing LFL sales growth rate increased in H2 to 5% from (2)% in H1, despite UK market weakness

·    Ireland LFL sales growth acceleration to 17% in H2 from 9% in H1, with 170bps FY margin improvement from operating leverage as volumes recover

·    French and German businesses continued to face the most subdued market conditions, but growing ahead of markets through differentiated offering and continued strong execution

·    Headcount reduction of 430 across the Group within the year, including closure of 17 underperforming branches, with an acceleration of restructuring actions in UK Interiors and Benelux in Q4

·    Good progress on Group wide 'GEMS' strategy (Grow, Execute, Modernise, Specialise), with modernisation initiatives including new e-commerce customer sales platform launched in Germany, and specialisation including expansion of specialist markets product ranges and contracts in UK

 

Commenting, Gavin Slark, Chief Executive Officer, said:

"The Group's 2024 results reflect a robust trading performance in challenging markets. We continued to experience lower volumes from weak end-markets across the UK and EU, but we have used this period to reshape our operations, through cost reduction and restructing actions, and to create better performing businesses across the Group. This will help to significantly improve our future profitability when markets recover.

"We also maintained a keen focus on our customers and delivering great service. I am proud of the energy and resilience our people have continued to demonstrate in this tough environment. Across all our operations we are implementing a range of initiatives under our 'GEMS' strategy, which will lead to a higher-value sales mix, continually stronger commercial execution, and more efficient operations, all of which will support delivery of our 5% medium-term operating margin target.

"The operational gearing in our business model applies equally strongly in conditions of rising demand, and, accordingly, the Board believes the Group remains very well positioned to benefit from the market recovery when it occurs."

 

Notes

1. Underlying represents the results before Other items. Other items relate to the amortisation of acquired intangibles, impairment charges, net restructuring costs, cloud based ERP implementation costs, costs associated with refinancing and other specific items.

2. Like-for-like is defined as sales per working day in constant currency, excluding completed acquisitions and disposals, and adjusted to exclude the net impact of branch closures and openings. The latter adjustment for branch changes was incorporated for the first time in our January trading statement, and the previously reported H1 numbers restated accordingly. The change had an impact of 1% on Group LFL growth rates in both H1 and H2.

3. Free cash flow is defined as all cash flows excluding M&A transactions, dividend payments, and financing transactions. Operating cash flow represents free cash flow before interest and financing and tax.

 

 

An Investor and Analyst presentation will be available on www.sigplc.com from 7:15am UK time today. A live presentation of the results followed by Q&A, hosted by Gavin Slark, CEO, and Ian Ashton, CFO, will take place at 10:00am UK time today.

Please click the link below to join the webinar:

https://storm-virtual-uk.zoom.us/webinar/register/WN_kCVdaS1XT02LnnKVd8G1XA

Webinar ID: 869 3075 2496

Or One tap mobile:

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Or join by phone:

+44 131 460 1196 United Kingdom; +44 203 481 5237 United Kingdom; +44 203 481 5240 United Kingdom; International numbers available: https://storm-virtual-uk.zoom.us/u/kbNydJgMFi

 

 

Enquiries

SIG plc		+44 (0) 114 285 6300
Gavin Slark Ian Ashton	Chief Executive Officer Chief Financial Officer
Sarah Ogilvie	Head of Investor Relations
FTI Consulting		+44 (0) 20 3727 1340
Richard Mountain

 

LEI: 213800VDC1BKJEZ8PV53

 

About

SIG plc is a leading pan-European supplier of specialist building products to trade customers across the UK, France, Germany, Ireland, Benelux and Poland. With leading market positions in specialist insulation, interiors and roofing products, as well as a growing position in construction accessories, SIG facilitates one-stop access to an extensive product range, provides expert technical advice and coordinates often complex delivery requirements. For suppliers, SIG offers a channel through which products can be brought to a highly fragmented market of smaller customers and sites that are of insufficient scale to supply direct. SIG employs approximately 6,700 employees across Europe and is listed on the London Stock Exchange (SHI). For more information, please visit the Company's website, www.sigplc.com.

 

 

Trading overview

Reported Group revenues were 5% lower in the year, including a 1% negative impact from exchange rates that was offset by a similar size benefit from the number of working days. There was also a 1% impact on reported revenue from branch closures during the year. These closures had the biggest impact in UK Interiors, reducing that business's full year reported sales by 3%.

Group LFL revenues, which are now adjusted to exclude the impact of branch closures and openings, declined 4% compared to prior year. Selling price deflation (including net input cost deflation) had a negative 3% impact on the year overall, being 3% in H1 and 2% in H2. Volumes were down 3% in H1, and flat in H2, reflecting softer H2 prior year comparatives but also some stabilisation of absolute volumes in the latter part of the year. Whilst weak demand has continued to be a factor in the majority of the Group's markets, reflecting the ongoing softness in the European building and construction sector, LFL performance improved sequentially in H2 as expected, and in Q4 compared to Q3.

 

LFL sales growth 2024 vs 2023	H1	H2	FY	FY24 sales
				£m
UK Interiors	(13)%	(6)%	(10)%	495
UK Roofing	(2)%	5%	2%	381
UK Specialist Markets	(7)%	(2)%	(5)%	238
UK	(8)%	(1)%	(5)%	1,114
France Interiors	(7)%	(7)%	(7)%	200
France Roofing	(11)%	(5)%	(8)%	410
Germany	(3)%	(1)%	(2)%	439
Poland	3%	(7)%	(2)%	241
Benelux	(12)%	(4)%	(8)%	104
Ireland	9%	17%	13%	104
EU	(5)%	(3)%	(4)%	1,498
Group	(6)%	(2)%	(4)%	2,612

 

 

In the UK Interiors business a new Managing Director with extensive industry experience has been in place since 1 October 2024, and he has already accelerated the strategic and operational changes that were underway to enable that business to sustainably improve its operating margin. The business also delivered a robust performance against the market in FY24, especially in H2. In UK Roofing we have positive momentum and delivered a notably strong set of results, driven by excellent commercial execution. In the UK Specialist Markets business, revenue was affected by weaker demand in the agricultural and commercial warehousing sectors, but there was more resilience in our construction accessories business.

In France, both businesses continue to execute effectively on their strategic plans and to manage well through a very subdued market. Larivière, our roofing business in France, was impacted by the weak French construction market with the rate of decline reducing in H2 as the business lapped the weaker prior year comparator. Larivière has increased its sales focus on larger customers and higher value products alongside its core ranges. LiTT, our interiors business in France, has experienced weaker demand and volume as well as market pressure on price, with notable weakness in new residential projects. Despite this, the business has grown its market position in 2024 with a continued strong focus on commercial initatives.

The German business continued its robust recovery of the last three years, performing extremely well in what is also a very challenging current market.

Poland's growth in H1 softened to a decline in the second half due to an unexpectedly weaker Q3, and with year on year weakness in the commercial project market in particular, but has stabilised since.

Benelux executed a significant restructuring in its Netherlands business in Q4, closing a number of branches, to narrow its focus to higher value categories in interiors and technical insulation. This is a key step on their way to an improved margin and positive cash generation.

Ireland delivered stronger results in 2024, partly due to market recovery after a very soft 2023, but also thanks to strong commercial execution across all our businesses, including the three specialist contracting businesses, which cover office fit-out, kitchen and bathroom fit-out, and industrial infrastructure painting. Ireland's operating margin improved 170 bps year over year due to the positive impact of operating leverage.

Strategic progress

Our vision is to be the best provider of specialist construction and insulation products in Europe. As an enabler of this, we have a core objective to improve our operating performance, and we are focused on four key pillars to drive our performance over the medium-term to our 5% operating profit margin target. These pillars are to Grow, Execute, Modernise and Specialise (GEMS). Key areas of strategic progress in 2024 can be summarised as follows:

Grow

Despite continued market contraction in 2024, we kept our focus on delivering great service, having the right products in the right place at the right time, coupled with excellent logistics and hence being the 'best' in the eyes of our customers.

Our 2024 LFL sales growth rates in our largest operating companies continued to show good performance relative to the local markets. Notably, in the United Kingdom, our UK Roofing business continued to trade with robust momentum against the wider market and continues to benefit from investments made in sales and marketing, notably the customer service experience in our branches.

Our German business has also significantly outperformed its local market. In February 2025, we hosted a major trade show in Frankfurt, the first of its kind in the German market in our space, bringing together over 1,500 representatives of our customers and suppliers under one roof. This event was an excellent example of industry leadership in action and an example of why our German business is performing so strongly.

Execute

We are committed to improving execution in all facets of our business in order to deliver consistent and profitable growth.

During 2024, we took further restructuring actions to reduce our permanent cost base to mitigate the impact of lower volumes on profitability. These measures, together with those commenced in the second half of 2023, are expected to generate £37m in annualised cost savings, and a £25m profit benefit including the overall impact of branch closures.

We have also reduced headcount by around 430 over the course of 2024. This included approximately 290 from restructuring.

We closed 17 branches that were either consistently underperforming, had seen a negative change in local market growth dynamics or were in locations which we believe we can service more effectively from another branch.

As outlined further above, we also accelerated restructuring actions in Benelux and UK Interiors in Q4 to improve their performance and profitability.

Modernise

The progressive modernisation and digitalisation of our operations creates an important opportunity for the Group to increase overall profitability and efficiency.

In 2024 we expanded our customer facing e-commerce platforms, with a new omnichannel sales model and e-commerce platform launching in Germany in August.

In France, an e-commerce platform for France Interiors is also being progressed, towards a targeted launch later in 2025. In both we are developing these platforms by leveraging our successful e-commerce experience in Poland.

Both platforms will allow us to provide a more seamless and convenient customer experience, by allowing them to purchase from SIG through the channel most convenient for them anywhere, anytime.

Specialise

We aim to accelerate our growth in more specialist, higher margin opportunities.

In 2024 our UK Specialist Markets business developed a number of innovative new products in our performance materials manufacturing and fabricating businesses. Some of these new products will target future market demand for even greater fire protection in high rise and other buildings, following changes under the UK Building Safety Act.

More broadly, our performance materials business has already launched a number of new products during the year, and has a strong product development pipeline. The launches have been supported by new training modules to support the specification of our new products earlier in the building design process.

Sustainability

Growing sustainably as a responsible business is another of our key objectives. During 2024 we made good progress on a number of our long-term targets.

One of our targets is to reach zero SIG waste to landfill by the end of the 2025 financial year. In 2024, we further improved our rate of diversion of waste to landfill, reaching 96%, an improvement from 94% in 2023. On carbon, our net zero emissions fell by 6% in the year, and have decreased by 18% against our 2021 baseline.

The significant driver of our carbon emissions remains our fleet, which we rely on to deliver our products. We continue to make progress towards our long-term reduction targets, although progress will not always be in a straight line each year as it is also influenced by market-driven changes in delivery volumes and by the rate at which commercially viable new low-carbon HGV technologies are brought to market.

Our safety performance also improved in 2024, with a good reduction in our Lost Time Injury Frequency Rate ('LTIFR') to 8.0 from 8.4 in 2023, driven by our ongoing safety programme to keep 'Everyone Safe, Every Day'.

Our employee engagement levels also remained broadly stable, with an employee engagement net promoter score of +9 (2023: +14), remaining positive despite the actions we have taken to reduce headcount and costs. This engagement is reflected in the strong commitment our colleagues have shown in managing, in a very agile way, through these difficult markets.

 

Balance Sheet

In October 2024 the Group successfully refinanced its €300m bond and £90m RCF facility, which extended debt maturies to 2029 and provides ongoing robust liquidity. Further details are set out in the Financial Review. The Group's balance sheet was impacted by the lower underlying operating profit, resulting from weaker market demand, which led to a free cash outflow of £39m, resulting in year end cash balances of £87.4m (2023: £132.2m). The movement in cash balances in the year reflects the free cash outflow, together with unfavourable currency movements and deferred acquisition costs, partially offset by the small net proceeds of the bond refinancing. The Group's revolving credit facility ("RCF") of £90m was undrawn throughout 2024, and remains undrawn at the date of this report.

Year-end net debt was £497.3m (2023: £458.0m). Combined with the lower profitability in the year, this resulted in year-end leverage of 4.7x (2023: 3.5x). A small increase in net lease liabilities and an increase in bond debt including accrued interest was more than offset by a favourable currency movement on the bond debt and lease liabilities.

Dividend

No dividend will be paid for 2024. The Board reiterates its commitment to return to paying a dividend, appropriately covered by underlying earnings, when it is prudent to do so. Continued successful strategic execution, including sensible investment where appropriate, will deliver sustainable, profitable growth and cash generation as markets recover, allowing the Board to consider a range of capital allocation options.

Outlook

The Group continues to expect softness in market conditions in 2025 and, to the extent there is a recovery, that it is more likely to drive demand in the second half of the year. Trading trends in early 2025 have been largely as we would have expected, and LFL sales for the first two months of the year were flat on prior year. 

During this period of market weakness we will continue to focus on our execution, manage near-term margin pressure and strengthen our operating platform. Alongside ongoing targeted investment to support our strategic growth enablers, the benefits from productivity and cost initiatives will contribute incrementally as the year progresses.

The operational gearing in our business model applies equally strongly in conditions of rising demand, and, accordingly, the Board believes the Group remains very well positioned to benefit from the market recovery when it occurs. This also underpins our continued belief that the Group will deliver its targeted 5% operating margin in the medium-term.

 

 

FINANCIAL REVIEW

The Group managed effectively the impact of challenging market conditions during 2024. The impact of declining volumes and falling prices were mitigated by extensive cost reduction, including ongoing restructuring and productivity initiatives. These actions also position the business to deliver a step-up in profitability when markets return to growth. The Group has maintained robust liquidity, and successfully refinanced its €300m bond and £90m RCF in October 2024, with these facilities now maturing in 2029.

Revenue

Group revenue of £2,611.8m (2023: £2,761.2m) was 5% lower on a reported basis, including a negative 1% impact from foreign exchange rates, a 1% increase from differences in the number of working days and a net 1% negative impact from branch closures and openings. LFL revenues, which are now adjusted to exclude the impact of branch closures and openings, reduced by 4% year-on-year. Within this 4%, the impact of sales price deflation was approximately 3%, about two thirds of which was related to input cost deflation, and there was a decline in volumes of approximately 1%.

Operating costs and profit

Gross profit decreased 8.5% to £640.0m (2023: £699.6m) with a gross profit margin of 24.5% (2023: 25.3%). The reduction in gross margin reflects greater than normal pricing pressure as a result of the weak demand environment. The businesses continue to manage these dynamics effectively and were able to offset the volume weakness in part through mix benefits.

The Group's underlying operating costs decreased by 4.9% to £614.9m (2023: £646.5m). The decrease was primarily due to operating cost initiatives, including restructuring actions taken from H2 2023 onwards, and partly due to lower volumes. These benefits were partially offset by operating cost inflation, with the biggest impact being on wages and salaries. The movement in year over year operating costs was also affected by a one-off £3.7m profit recorded in 2023 from the sale of the former French Roofing head office building in Angers.

The Group's underlying operating profit decreased to £25.1m (2023: £53.1m), at an operating margin of 1.0% (2023: 1.9%). Reported operating loss was £3.8m (2023: £4.0m profit) after Other items of £28.9m (2023: £49.1m). Other items includes £13.4m restructuring costs, £3.9m refinancing costs and a £7.3m non-cash impairment in the UK Interiors business.

 

 

Segmental analysis

UK

	Revenue 2024 £m	Revenue 2023 £m	LFL sales vs 2023	Underlying operating (loss)/profit 2024 £m	Underlying operating (loss)/profit 2023 £m
UK Interiors	495.0	556.5	(10)%	(3.5)	(1.6)
UK Roofing	380.6	369.4	2%	13.2	10.6
UK Specialist Markets	238.1	247.6	(5)%	4.8	10.3
UK	1,113.7	1,173.5	(5)%	14.5	19.3

Revenue in UK Interiors, a specialist insulation and interiors distribution business, decreased to £495.0m (2023: £556.5m). Revenue was 11% lower year-on-year due to the impact of a decline in market volumes and input price deflation in a very competitive market. The drop in sales included a c3% reduction related to branch closures within a wider programme of strategic initiatives that are underway to transform the performance and profitability of this business over the medium-term. LFL revenue declined 10%. The H1 LFL decline of 13% reduced to an H2 decline of 6%, reflecting a softening in comparables as well as a stablisation in absolute volumes in H2. The decline in revenue, together with pricing pressure affecting gross margin, partially offset by operating cost reductions, resulted in an underlying operating loss of £3.5m (2023: £1.6m).

Revenue in UK Roofing, a specialist roofing merchant, increased by 3% to £380.6m (2023: £369.4m), with LFL revenue up 2%. This was driven by a strong sales performance relative to a weak UK market, as a result of the business's early successful execution of its multi-year programme of business development and growth initiatives. In particular, H2 LFL growth of 5% reflected a robust outperformance of its market as well as the lapping of a weaker prior year comparative. Full year volume growth was only partially offset by a small purchase price deflation headwind. A small reduction in gross margin due to pricing dynamics was offset by operating cost reduction, and resulted in improved underlying operating profit of £13.2m (2023: £10.6m).

Revenue in UK Specialist Markets decreased to £238.1m (2023: £247.6m). LFL revenue declined 5%, driven by a softer market, and by input price deflation in steel, which is a bigger element of these businesses than elsewhere in the Group. H1 LFL revenue decline of 7% eased to a decline of 2% in H2, due to a stabilisation in market conditions and the effect of weaker prior year comparables. These factors, coupled with operating cost inflation, resulted in a reduction in underlying operating profit to £4.8m (2023: £10.3m).

France

	Revenue 2024 £m	Revenue 2023 £m	LFL sales vs 2023	Underlying operating profit 2024 £m	Underlying operating profit 2023 £m
France Interiors	200.4	218.9	(7)%	6.2	10.4
France Roofing	410.1	458.0	(8)%	8.0	19.3
France	610.5	676.9	(8)%	14.2	29.7

France Interiors, a structural insulation and interiors business trading as LiTT, saw reported revenue decrease by 8% to £200.4m (2023: £218.9m), and by 7% on a LFL basis, with the rate of decline steady between H1 and H2. This was driven by lower market demand and volumes together with input price deflation, as opposed to the price inflation seen in 2023. The revenue decline, coupled with increased margin pressure, was partially mitigated by various actions to reduce operating costs, and resulted in a £4.2m decrease in underlying operating profit to £6.2m (2023: £10.4m).

Revenue in France Roofing, a specialist roofing business trading as Larivière, decreased by 10% to £410.1m (2023: £458.0m), and by 8% on a LFL basis, including a small impact of strategic branch closures made during the year. Demand and volumes were lower for the year due to continued softening of the residential new-build market and input price deflation. The H1 LFL revenue decline of 11% eased to a decline of 5% as the business lapped the weak H2 comparator in the prior year, and as volumes saw some stablisation. The decrease in revenue and reduced gross margin was partially offset by reduced operating costs, resulting in an underlying operating profit decrease of £11.3m to £8.0m (2023: £19.3m). The year on year change in underlying operating profit includes the one-off operating profit benefit in H2 2023 of £3.7m from the sale of the business's former headquarters in Angers.

Germany

	Revenue 2024 £m	Revenue 2023 £m	LFL sales vs 2023	Underlying operating profit 2024 £m	Underlying operating profit 2023 £m
Germany	438.5	462.1	(2)%	4.7	15.6

Revenue in Wego/Vti, our specialist insulation and interiors distribution business in Germany, decreased by 5% to £438.5m (2023: £462.1m), including a small impact from closures of underperforming branches. LFL revenue decreased 2%, with deflation being offset by marginal volume growth, the latter despite weaker market conditions in the very subdued German construction market. H2 was slightly better than H1 due to the lapping of softer prior year comparators. Despite the headline LFL decline and consequential impact on profitability, the business continued to demonstrate very positive momentum and execution on strategic initiatives during the year, as set our earlier in this report. Gross margin also declined due to increased price competition, whilst operating costs increased, with restructuring partially offsetting inflation. This resulted in reduced underlying operating profit of £4.7m (2023: £15.6m).

Poland

	Revenue 2024 £m	Revenue 2023 £m	LFL sales vs 2023	Underlying operating profit 2024 £m	Underlying operating profit 2023 £m
Poland	241.4	237.9	(2)%	4.6	7.1

In our Polish business, a market-leading distributor of insulation and interiors, revenue increased to £241.4m (2023: £237.9m), including a c1% increase due to two new branches. LFL sales decreased by 2%. LFL growth shifted from 3% growth in H1 to a 7% decline in H2, as the H1 benefit of government housing stimulus slowed and macroeconomic factors saw a sequential weakening in construction market demand. This was more marked in Q3, and Q4 saw some stablisation. The full year decline was primarily driven by input price deflation, with underlying volumes growing. Together with operating cost inflation, partially offset by gross margin improvement, this resulted in a reduction in underlying operating profit to £4.6m (2023: £7.1m).

Benelux

	Revenue 2024 £m	Revenue 2023 £m	LFL sales vs 2023	Underlying operating  (loss) 2024 £m	Underlying operating  (loss) 2023 £m
Benelux	103.6	116.9	(8)%	(4.5)	(3.0)

Reported revenue from the Group's business in Benelux decreased to £103.6m (2023: £116.9m) with a c1% impact from the strategic decision to close seven branches in late H2. LFL revenue was down 8%, with the H1 LFL decline of 12% improving to a decline of 4% in H2. The revenue decline resulted from continued market softness, albeit this saw some stabilisation due to lapping of weak comparables in H2. The profit impact of this was only partially offset by operating cost savings, resulting in an underlying operating loss of £4.5m (2023: £3.0m).

Ireland

	Revenue 2024 £m	Revenue 2023 £m	LFL sales vs 2023	Underlying operating profit 2024 £m	Underlying operating profit 2023 £m
Ireland	104.1	93.9	13%	3.3	1.4

Our operations in Ireland comprise a specialist distributor of interiors and exteriors, and three separate specialist contracting businesses offering office fit-out, industrial infrastructure coatings services and kitchen/bathroom interiors fit-out. Reported revenue increased by 11% to £104.1m (2023: £93.9m), and by 13% on a LFL basis. This was partially a result of improved market conditions after a very weak 2023, but also due to good execution of commercial initiatives to improve profitable market share. Underlying operating profit increased as a result to £3.3m (2023: £1.4m).

Reconciliation of underlying to statutory result

Other items, being items excluded from underlying results, amounted to £30.5m for the year (2023: £49.3m) on a pre-tax basis. The key comparable changes in Other items year-on-year are the higher prior year impairment charge in 2023, the one-off costs of refinancing in 2024, and higher restructuring costs in 2024. The numbers for both years are summarised in the table below:

	2024 £m	2023 £m
Underlying (loss)/profit before tax	(14.3)	17.4
Other items - impacting profit before tax:
Amortisation of acquired intangibles	(2.1)	(2.8)
Impairment charges	(7.3)	(33.8)
Cloud based ERP implementation costs	(1.0)	(2.2)
Costs associated with acquisitions	-	(3.2)
Net restructuring costs	(13.4)	(8.0)
Onerous contract costs	-	(0.2)
Costs associated with refinancing	(3.9)	-
Other specific items	(1.2)	1.1
Non-underlying finance costs	(1.6)	(0.2)
Total Other items	(30.5)	(49.3)
Statutory loss before tax	(44.8)	(31.9)

Other items are disclosed separately in order to provide a better indication of the underlying earnings of the Group. Further details of other items in 2024 are as follows:

·    Impairment charges in the year relate to right-of-use asset impairment in the UK Interiors business.

·    Net restructuring costs in the year comprise £6.5m redundancy and related staff costs and £6.9m branch closure costs, including £2.9m impairment of right-of-use assets and tangible fixed assets, all related to restructuring across the Group.

·    Costs associated with refinancing in the year relate to the new €300m bond issuance and the extension of the RCF. These consist of £3.9m of transaction costs, and also a £1.4m write-off of unamortised fees, included within non-underlying finance costs in the above table, relating to the prior refinancing in 2021.

·    Cloud based ERP implementation costs relate to project configuration and customisation costs associated with strategic cloud computing arrangements, which are expensed, rather than being capitalised as intangible assets.

·    Other specific items comprises the estimated impact of a property lease dispute, including impairment of right-of-use and fixed assets of £0.7m, and costs relating to an investment property no longer in use by the Group.

Taxation

The effective tax rate for the Group on the total loss before tax of £44.8m (2023: £31.9m loss) is a "negative tax rate" of 8.5% (2023: negative 36.1%).

The tax charge for the year of £3.8m is related to taxable profits made in the majority of our EU markets. Tax losses in the UK and Benelux, which cannot be surrendered or utilised cross border, are not currently recognised as deferred tax assets, and this impacts the effective tax rate. Due to a reduction of the profit before tax in the overseas operating companies and the ongoing losses in the UK, the Group has generated an overall loss before tax which, alongside the positive P&L tax charge in the overseas operating companies, has resulted in the negative effective tax rate.

In accordance with UK legislation, the Group publishes an annual tax strategy, which is available on our website (www.sigplc.com).

Pensions

The Group operates a number of pension schemes, four of which provide defined benefits based upon pensionable salary. One of these schemes, in the UK, has assets held in a separate trustee administered fund, and three are overseas book reserve schemes. The largest defined benefit pension scheme is the UK scheme, which was closed to further accrual in 2016.

The Group's total pension charge for the year, including amounts charged to interest after Other items, was £8.3m (2023: £8.9m), of which a charge of £1.1m (2023: £1.4m) related to defined benefit pension schemes and £7.2m (2023: £7.5m) related to defined contribution schemes.

The total net liability in relation to defined benefit pension schemes at 31 December 2024 was £18.2m (2023: £20.3m). The latest triennial actuarial valuation of the UK scheme was as at 31 December 2022 and was concluded in March 2024. The scheme remains well funded.

Financial position

Overall, the net assets of the Group decreased by £48.7m to £179.8m (2023: £228.5m), with a cash position at year end of £87.4m (2023: £132.2m) and net debt of £497.3m (2023: £458.0m), which includes net lease liabilities of £321.4m (2023: £326.5m).

The movement in net debt mainly reflects the movement in cash noted below. A small constant currency increase in net lease liabilities, more than offset by a favourable currency movement, resulted in net lease liabilities reducing by £5.1m.

 

 

Cash flow

		2024 £m	2023 £m
	Underlying operating profit	25.1	53.1
	Add back: Depreciation	78.9	76.6
	Add back: Amortisation	1.2	2.4
	Underlying EBITDA	105.2	132.1
	(Increase)/decrease in working capital	(6.6)	2.8
	Repayment of lease liabilities	(67.5)	(63.6)
	Capital expenditure	(16.1)	(15.8)
Other		2.2	3.8
	Operating cash flow pre exceptional cash items1	17.2	59.3
	Cash exceptional items	(13.0)	(6.4)
	Operating cash flow1	4.2	52.9
	Interest and financing	(34.8)	(34.7)
	Tax	(8.0)	(14.0)
	Free cash flow1	(38.6)	4.2
	Acquisitions and investments	(8.4)	(0.7)
	Drawdown/(repayment) of debt	7.3	(0.8)
	Total cash flow	(39.7)	2.7
	Cash and cash equivalents at beginning of the year2	132.2	130.1
	Effect of foreign exchange rate changes	(5.1)	(0.6)
	Cash and cash equivalents at end of the year2	87.4	132.2

1.     Free cash flow is defined as all cash flows excluding M&A transactions, dividend payments, and financing transactions. Operating cash flow represents free cash flow before interest and financing and tax.

2.     Cash and cash equivalents at 31 December 2024 comprise cash at bank and on hand of £87.4m (2023: £132.2m) less bank overdrafts of £nil (2023: £nil).

During the period, the Group delivered £17.2m of operating cash flow before exceptional cash spend, which represents a 68% conversion of the underlying operating profit. Post exceptional cash the conversion was 18%. The lower profit in the year was the key driver of lower year on year operating cash flow, coupled with slightly higher lease repayments and capex. Working capital at the end of the year remained broadly in line with the previous year. The Group reported a free cash outflow of £38.6m (2023: £4.2m inflow). This decline versus the prior year resulted from the lower operating cash flow.

Capex during the period was £16.1m (2023: £15.8m).

Cash exceptional items are those that are related to "Other items" in the Consolidated income statement, and include restructuring costs and refinancing costs. "Other" in the cash flow includes payments to the Employee Benefit Trust to fund share plans of £0.8m (2023: £1.7m), £2.5m payment to the defined benefit pension scheme in the UK, add back of non-cash P&L items, provision movements, and proceeds on sale of property, plant and equipment.

Financing and funding

The Group's debt funding comprises €300m of 9.75% and €13.5m of 5.25% fixed rate secured notes, maturing in October 2029 and November 2026 respectively, and an RCF of £90m which matures in April 2029. The 9.75% notes were issued in October 2024 through a refinancing of the Group's previous bond and RCF, which were both due to mature in 2026. The new secured notes are subject to incurrence-based covenants only. The RCF has a leverage maintenance covenant set at 6.5x for 2025, 5.5x for 2026, and 5.0x thereafter, all of which only apply if the facility is over 40% drawn at a quarter end reporting date. The RCF was undrawn throughout 2024, and remains undrawn at the date of this report.

The Group's liquidity position remained robust throughout 2024, and at the end of the period stood at £177m, consisting of cash of £87m and the £90m undrawn RCF noted above.

	2024 £m	2023 £m
Cash and cash equivalents at end of the year	87.4	132.2
Undrawn RCF at end of the year	90.0	90.0
Liquidity	177.4	222.2
Net debt	497.3	458.0
Leverage	4.7x	3.5x

 

 

Directors' responsibility statement on the Annual Report

The responsibility statement below has been prepared in connection with the Company's full Annual Report for the year ended 31 December 2024. Certain parts solely thereof are not included within this announcement.

We confirm that to the best of our knowledge:

(a) the financial statements, prepared in accordance with the relevant financial reporting framework, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole;

(b) the Strategic report includes a fair review of the development and performance of the business and the position of the Company, and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face; and

(c) the Annual Report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

 

This responsibility statement was approved by the Board of Directors on 4 March 2025 and signed on its behalf by:

 

By order of the Board
Gavin Slark	Ian Ashton
Director	Director
4 March 2025	4 March 2025

 

 

 

Cautionary statement

The securities of the Group have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), or under the securities laws of any state or other jurisdiction of the United States, and may not be offered, sold, pledged or transferred, directly or indirectly, in, into or within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any relevant state or other jurisdiction of the United States. There has been and will be no public offering of the securities of the Group in the United States.

This announcement has been prepared to provide the Company's shareholders with a fair review of the business of the Group and a description of the principal risks and uncertainties facing it. It may not be relied upon by anyone, including the Company's shareholders, for any other purpose.

This announcement contains forward-looking statements that are subject to risk factors including the economic and business circumstances occurring from time to time in countries and markets in which the Group operates and risk factors associated with the building and construction sectors. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions because they relate to events and/or depend on circumstances that may or may not occur in the future and could cause actual results and outcomes to differ materially from those expressed in or implied by the forward-looking statements. No assurance can be given that the forward-looking statements in this announcement will be realised. Statements about the Directors' expectations, beliefs, hopes, plans, intentions and strategies are inherently subject to change and they are based on expectations and assumptions as to future events, circumstances and other factors which are in some cases outside the Group's control. Actual results could differ materially from the Group's current expectations.

It is believed that the expectations set out in these forward-looking statements are reasonable but they may be affected by a wide range of variables, which could cause actual results or trends to differ materially, including but not limited to, changes in risks associated with the level of market demand, fluctuations in product pricing and changes in foreign exchange and interest rates.

The Company's shareholders are cautioned not to place undue reliance on the forward-looking statements. This announcement has not been audited or otherwise independently verified. The information contained in this announcement has been prepared on the basis of the knowledge and information available to Directors at the date of its preparation and the Company does not undertake any obligation to update or revise this announcement during the financial year ahead.

 

 

Consolidated income statement

For the year ended 31 December 2024

 

		Underlying1	Other items1	Total	Underlying1	Other items1	Total
		2024	2024	2024	2023	2023	2023
	Note	£m	£m	£m	£m	£m	£m
Revenue	2	2,611.8	-	2,611.8	2,761.2	-	2,761.2
Cost of sales		(1,971.8)	-	(1,971.8)	(2,061.6)	-	(2,061.6)
Gross profit		640.0	-	640.0	699.6	-	699.6
Other operating expenses	3	(609.1)	(28.9)	(638.0)	(640.6)	(50.2)	(690.8)
Impairment (losses)/gains on financial assets	3	(5.8)	-	(5.8)	(9.6)	1.1	(8.5)
Gain on disposal of property	3	-	-	-	3.7	-	3.7
Operating profit/(loss)		25.1	(28.9)	(3.8)	53.1	(49.1)	4.0
Finance income	4	2.7	-	2.7	2.2	-	2.2
Finance costs	4	(42.1)	(1.6)	(43.7)	(37.9)	(0.2)	(38.1)
(Loss)/profit before tax		(14.3)	(30.5)	(44.8)	17.4	(49.3)	(31.9)
Income tax (expense)/credit	5	(5.4)	1.6	(3.8)	(13.0)	1.5	(11.5)
(Loss)/profit after tax		(19.7)	(28.9)	(48.6)	4.4	(47.8)	(43.4)
Attributable to:
Equity holders of the Company		(19.7)	(28.9)	(48.6)	4.4	(47.8)	(43.4)
Loss per share
Basic	6			(4.2)p			(3.8)p
Diluted	6			(4.2)p			(3.8)p

 

¹ Underlying represents the results before Other items. Other items have been disclosed separately in order to give an indication of the underlying earnings of the Group. Further details are disclosed in Note 3.

 

 

Consolidated statement of comprehensive income

For the year ended 31 December 2024

 

		2024 £m	2023 £m
Loss after tax for the year		(48.6)	(43.4)
Items that will not subsequently be reclassified to the Consolidated income statement:
Remeasurement of defined benefit pension liability		(0.2)	1.1
Deferred tax movement associated with remeasurement of defined benefit pension liability		-	(0.1)
		(0.2)	1.0
Items that may subsequently be reclassified to the Consolidated income statement:
Exchange difference on retranslation of foreign currency goodwill and intangibles		(2.2)	(1.1)
Exchange difference on retranslation of foreign currency net investments (excluding goodwill and intangibles)		(13.1)	(2.8)
Exchange and fair value movements associated with borrowings and derivative financial instruments		12.3	5.8
Losses and gains on cash flow hedges		(1.1)	(1.1)
Transfer to profit and loss on cash flow hedges		1.0	(1.5)
		(3.1)	(0.7)
Other comprehensive (expense)/income		(3.3)	0.3
Total comprehensive expense		(51.9)	(43.1)
Attributable to:
Equity holders of the Company		(51.9)	(43.1)

 

 

 

Consolidated balance sheet

As at 31 December 2024

 

		2024	2023
		£m	£m
Non-current assets
Property, plant and equipment		64.9	65.4
Right-of-use assets		250.3	263.1
Goodwill		129.0	131.2
Intangible assets		12.5	15.3
Lease receivables		1.9	2.2
Deferred tax assets		4.6	4.4
Non-current financial assets		0.3	0.2
		463.5	481.8
Current assets
Inventories		253.8	259.1
Lease receivables		0.3	1.1
Trade and other receivables		370.8	389.1
Current tax assets		2.3	3.6
Current financial assets		0.1	-
Cash at bank and on hand		87.4	132.2
		714.7	785.1
Total assets		1,178.2	1,266.9
Current liabilities
Trade and other payables		358.6	385.8
Lease liabilities		64.9	64.9
Interest-bearing loans and borrowings		5.2	0.8
Deferred consideration		-	1.8
Derivative financial instruments		1.3	1.0
Current tax liabilities		1.7	6.9
Provisions		7.6	7.9
		439.3	469.1
Non-current liabilities
Lease liabilities		258.7	264.9
Interest-bearing loans and borrowings		256.9	260.0
Derivative financial instruments		0.1	0.1
Other payables		2.8	3.0
Retirement benefit obligations		18.2	20.3
Provisions		22.4	21.0
		559.1	569.3
Total liabilities		998.4	1,038.4
Net assets		179.8	228.5
Capital and reserves
Called up share capital		118.2	118.2
Treasury shares reserve		(8.6)	(11.6)
Capital redemption reserve		0.3	0.3
Share option reserve		7.8	7.6
Hedging and translation reserves		0.7	3.8
Cost of hedging reserve		0.1	0.1
Merger reserve		92.5	92.5
Retained (losses)/profits		(31.2)	17.6
Attributable to equity holders of the Company		179.8	228.5
Total equity		179.8	228.5