Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Britain's SIG eyes strong earnings but supply snags to persist

Published 21/09/2021, 07:23
Updated 21/09/2021, 10:06
© Reuters.

© Reuters.

By Aby Jose Koilparambil and Sachin Ravikumar

(Reuters) -Building materials supplier SIG (LON:SHI) on Tuesday predicted its annual earnings would top expectations but joined other British companies in warning that severe supply constraints will likely persist for several months.

SIG, which sells roofing and insulation materials in Britain and a handful of European countries, said trading was "solid" during July-August despite the supply disruptions, which are being worsened by a shortage of truck drivers.

The Sheffield-based company said it expected full-year underlying operating profit above prior expectations, provided current supply constraints do not worsen.

Shares in SIG were 1.6% higher at 50.65 pence by 0835 GMT on the London Stock Exchange.

Analysts at Jefferies raised their estimates for SIG's 2021 profit to 32 million pounds ($43.8 million) from 25 million, predicting stronger profit margins from France and Germany. SIG had reported a loss of 43.2 million pounds in 2020.

Globally, businesses across industries have been hit by supply bottlenecks at ports and warehouses and a raft of companies in Britain have said the issues are leading to higher costs and could weigh on earnings.

Home improvement retailer Kingfisher (LON:KGF) warned on Tuesday its suppliers were challenged by high order levels, and flagged supply issues at its building materials and outdoor ranges businesses.

SIG posted an underlying operating profit of 13.6 million pounds for the six months ended June 30, compared with a loss a year earlier.

($1 = 0.7309 pounds)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.