Building materials group SIG says it expects profits for the year to December to be at the bottom end of market expectations, between £63 million and £99m.
The Sheffield-based group said trading conditions had remained very challenging though the past month. UK volumes remained subdued and pricing pressures were holding back performance, with the UK interiors business particularly affected.
SIG also said European markets had not achieved the usual level of seasonal improvement in the last four weeks. The company had implemented cost cuts in May which brought total annualised savings to £62m and it had implemented additional cost saving measures in the last four weeks which it expected to deliver a further £8m.
Following an equity fundraising completed on April 9 its balance sheet remained strong and SIG said it is confident it will operate within its banking covenants through 2009.