SIG plc had published its financial results for the full year ended 31December 2021
The Group saw a 24.3% increase in its revenue over the year, with Group underlying revenue up to £2,29 million (2020: £1,87 million), reflecting a strong recovery from the impact of Covid-19 in 2020, driven by the effective implementation of the business' Return to Growth strategy, as well as the inflationary tailwind.
Price inflation added to revenue in all areas where the business operates, by an estimated 8% for the full year. Underlying gross profit increased 28% to £602 million (2020: £470 million) with a gross profit margin of 26.3% (2020: 25.1%). This primarily reflects increased rebate receipts due to increased sales.
The UK business overall returned to underlying profitability for the year, with Interiors returning to profit in H2. Sales were up 37% (to 930 million) compared to 2020 and 4% compared to 2019. The Group attributes this to the re-establishement of a decentralised operating model, slimmed down national and central structures, and strengthened regional and branch structures, underpinned by branch P&L accountability.
The Group considers it has strong positions in its core markets, and the fundamentals of those markets remain attractive. The Board believes it has the right strategy and foundations in place to deliver long-term, sustainable, profitable growth.
With no direct exposure to Russia or Ukraine, SIG is currently not seeing any significant impact on its business arising from the current conflict, but it will continue to monitor the situation closely. The conflict, and the response to it, could affect, amongst other things, energy prices, commodity supply, and exchange rates.
This is alongside the existing global backdrop of inflationary pressures. In the near-term the business is anticipating some remaining impact from material shortages, but these are gradually abating.
SIG has started 2022 well, and ahead of plan, helped by a continuation of the robust demand seen in late 2021. This, together with what it sees as the effectiveness of its supply chain management and commercial agility, gives the Board increasing confidence over the full year performance.
Steve Francis, Chief Executive Officer, commented: “2021 was a pivotal year – accelerating progress on our strategy has returned the Group to profitability ahead of expectations, delivering above market growth rates and consistent margin improvement, the result of record performance in France and Poland, and strong turnaround in the UK.
“In uncertain times, SIG demonstrated in 2021, as it has in previous decades, its ability to manage successfully through inflationary and volatile market conditions, thanks to our strong relationships with suppliers and customers, and the quality of our people.
“Growth momentum, resilience of our businesses, and experienced leadership all underpin our confidence in the organic growth path towards 5% underlying operating margin in the medium term.
“I’m proud that SIG has a long-established focus on energy efficient solutions, and we will play a leadership role in the shift to sustainable construction.” “SIG is back to winning ways, and we look forward to 2022 and beyond with confidence.”
