SIG (SHI) H1 2025 earnings summary

Executive summary

• Like-for-like sales grew 1% to £1,304m in H1 2025, with UK delivering 5% growth and outperforming subdued European construction markets.

• Underlying operating profit rose to £15.4m, supported by £21m in cost savings and restructuring, with margin improving to 1.2%.

• Statutory loss before tax widened to £33.1m, mainly due to significant impairment charges and restructuring costs.

• Free cash outflow improved to £9.3m, with liquidity at £172m and net debt at £524m.

• CEO transition planned for October 2025, with Pim Vervaat joining and set to become Chair in 18 months.

Financial highlights

• Revenue: £1,304m (up 1% LFL); gross margin: 24.2% (down 0.5pp year-over-year) due to pricing pressures.

• Underlying operating profit: £15.4m (H1 2024: £11.7m); operating margin: 1.2% (up from 0.9%).

• Underlying EBITDA: £54.1m; free cash outflow: £9.3m (improved from £22m outflow in H1 2024).

• Net debt (post-leases): £524m; leverage increased to 4.9x LTM EBITDA.

• Finance costs rose to £26m, reflecting higher bond coupon rates.

Outlook and guidance

• Full-year 2025 guidance remains unchanged despite ongoing market weakness; Board remains cautious on near-term market improvement.

• Expect modest positive like-for-like sales growth in H2, with continued pricing pressure and OpEx inflation at 2%-3%.

• Net interest charge expected at £50-55m, likely at the lower end.

• Cash outflow for the full year expected to moderate substantially versus last year.

• Analyst consensus for FY 2025 underlying operating profit (EBIT) is £31.6m, range £30m–£35m.