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SIG 4-Month Revenues Rise, LFL Revenues Down; CEO Stuart Mitchell Steps Down

SIG Plc (SHI.L), a distributor of specialist building products, reported Friday that group revenues for the four months July to October increased 10.6% from last year, benefited from movements in foreign exchange rates and acquisitions. On a like-for-like basis, Group sales declined 0.8% in the period.

In the UK & Ireland reported revenues grew 2.7 percent, while, LFL revenues decreased 1.1%, with SIG Distribution and SIG Exteriors recording LFL sales declines of 1.2% and 1.7% respectively

The company noted that trading conditions in the UK have continued to soften and competition in the market has intensified following a slowing of activity around the time of the EU referendum.

In Mainland Europe, reported revenues climbed 20.8 percent, while Group's LFL sales declined 0.5%.

Looking ahead for fiscal 2016, the company now expects underlying profit before tax to be in the range of 75 million pounds to 80 million pounds, reflecting the weaker than anticipated trading conditions and intensified competition in the UK.

Separately, SIG announced that Stuart Mitchell has stepped down as Group Chief Executive by mutual agreement with immediate effect.

Mel Ewell, a Non-Executive Director, has been appointed Interim Group Chief Executive on a full time basis whilst the Board conducts an external search for a new Group Chief Executive.

Leslie Van de Walle, Chairman of SIG plc, said, "Stuart brought together a loose federation of independent businesses; developed a new strategy and plans to improve our procurement and supply chain functions; and identified new areas of organic growth opportunities in Air Handling and Offsite."

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