Shares in Sig PLC were impacted following the company’s announcement of a 2% decline in like-for-like revenue during the third quarter. Market conditions have remained challenging, leading to the company lowering its expectations for underlying operating profit for the year.
At 0743 GMT, shares were down by 18%, equivalent to 6 pence per share, and settled at 28 pence. Sig PLC, a U.K.-based building-materials supplier, explained that its underlying operating profit, which excludes exceptional and other one-off items, is now projected to range between 50 million pounds to 55 million pounds ($61.6 million to $67.7 million). The weaker short-term demand outlook is the primary driver behind this adjustment.
Challenging Market Conditions
Sig PLC continued to face challenging market conditions across all of its geographies. While there was some improvement in year-on-year volume performance in the second half of the year compared to the first, it fell below initial expectations. Additionally, there was a noticeable decline in demand in September.
Despite the short-term market weakness, Sig PLC remains committed to progressing its strategic and operational initiatives. These initiatives are aimed at reinforcing the company’s vision for growth. Sig PLC expressed confidence in its ability to enhance its market positions and improve profitability once market conditions recover.