Britain’s SIG expects strong earnings but supply snags to persist By Reuters
(Reuters) -UK-based building materials supplier SIG Plc predicted on Tuesday its annual earnings would top previous expectations but warned that an industry-wide shortage of materials will likely continue this year.
SIG, which supplies roofing and insulation materials in Britain and a handful of European countries, said trading in July-August remained “solid” despite the supply disruptions, which include a shortage of truck drivers.
Companies across industries have been hit by supply bottlenecks at ports and warehouses. The UK construction industry grew at its weakest pace since early 2021 in August due to the supply squeeze.
“We are anticipating a continued impact from material shortages, which could be more significant than in H1, and which could persist for an extended period,” the company said in a statement.
SIG said it expected full-year underlying operating profit above prior expectations, provided the supply constraints don’t worsen.
Sheffield-based SIG posted underlying operating profit of 13.6 million pounds ($18.6 million) for the six months ended June 30, compared with a loss of 42.9 million pounds a year earlier.
($1 = 0.7317 pounds)
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