SIG (SHI) H1 2026 TU earnings summary

Executive summary

• Like-for-like sales declined 1.5% year-over-year in H1 2026 due to challenging market and weather conditions.

• Q2 performance improved with LFL sales up 1% after a weak Q1 (LFL -5%).

• Underlying operating profit for H1 2026 is expected to be approximately £10m, down from £15m in H1 2025.

Financial highlights

• Net debt at 30 June 2026 was £532m (including leases).

• Liquidity remains strong at £154m, supported by targeted inventory build ahead of raw material price increases.

• FY 2026 underlying operating profit now expected to be around £25m.

Outlook and guidance

• No material recovery in market conditions is anticipated for H2 2026.

• Liquidity levels expected to remain healthy, benefiting from stronger seasonal cash generation in H2.

• Improvement plan targets at least £100m cash generation and £50m annualised operating profit run rate improvement by H1 2028.

• Further details of the improvement plan to be shared with H1 2026 results on 4 August 2026.