Profits at European building products group, SIG, are set to exceed market expectations.
In an update to the market, the group said sales were up 8% in the year to December 31 2011, and underlying profits were likely to overshoot forecasts.
The company also said it would streamline its management structure, creating a new UK and Ireland md position – whose territory last year represented 44 per cent of sales.
The firm’s core markets of insulation & energy management, interior fit out and roofing had benefited from a mild European winter, the firm said.
The strongest revenue growth came from France, where revenues grew 14%. But the UK was also positive with a sales uptick of 4 per cent for the 12 month period.
Following John Chivers’ retirement from the Group, SIG has appointed Robert Barclay, previously md of SIG Distribution, to the new post of UK & Ireland md.
The firm said the new structure would enable SIG to increase opportunities for revenue growth through cross-selling in the region, and drive further operational efficiencies.
The trading statement said: “Whilst trading in the last quarter of 2011 remained resilient, the recent weakening in the macroeconomic outlook for both the UK and Mainland Europe leads the Group to expect that market volumes will be slightly down overall in 2012. Nonetheless, management anticipates that SIG will continue to gain market share, not least from the maturing of branches opened in recent years, but also from other growth initiatives.”