SIG has revealed its 2020 like-for-like sales were down 13%, but saw a solid recovery in the second half, according to its financial results for the year ending 31 December, 2020.
The company reported an underlying gross margin down 80bps due to lower sales volumes over the year, with an underlying operating loss of £53.3 million, which is better than expected, however.
The specialist building solutions provider had an underlying loss before tax of £76.3 million (compared to £17.7 million in profit before tax in 2019).
However, trading in 2021 to date is in line with management expectations, continuing a similar trajectory to Q4 2020, where like-for-like sales were up 4%, reflecting broad-based growth across all major markets, including the UK.
Market fundamentals remain strong and with a UK distribution structure in place, revenue growth is starting to emerge as planned. However, continued uncertainty remains regarding COVID-19.
Commenting on the report, Steve Francis, chief executive officer at SIG, said: “Our teams have shown great resilience and commitment in the face of the challenging circumstances for much of the year, the effects of which clearly impacted our first half, and hence full year, results.
“Providing a safe environment and instilling an even greater focus on good health and safety behaviours has been and will remain a major focus of the new management team.
“I am delighted that due to our ‘Return to Growth’ strategy, we delivered a solid second half and have begun to return the business to growth after a long period of decline. On behalf of the whole board, I would like to thank all our employees for their significant efforts, and successes, during the year.”
