SIG (SHI) H2 2025 earnings summary

Executive summary

• Achieved a marginal uptick in volumes and outperformed local markets despite challenging conditions in FY 2025, with group like-for-like revenue flat.

• Operating profit rose 28% year-over-year to GBP 32 million, driven by significant cost reductions, restructuring, and robust cash and working capital management.

• Developed and continued execution of Vision 2030 strategy, focusing on evolving the GEM strategy, procurement, working capital, and business portfolio optimization.

• Maintained strong liquidity and positioned for future growth through ongoing restructuring and portfolio optimisation.

Financial highlights

• Group sales were flat year-over-year on a like-for-like basis, with reported revenue at GBP 2.59 billion.

• Gross margin declined by 30 basis points to 24.2% due to pricing pressures.

• Underlying operating profit reached GBP 32 million (+28% YoY), but underlying loss before tax was GBP 20 million after finance costs.

• Non-cash impairment charges of GBP 30 million and GBP 9 million in restructuring costs impacted results.

• Free cash outflow improved to GBP 12 million, with liquidity at GBP 171 million and net debt at GBP 518 million.

Outlook and guidance

• Expect continued market softness in H1 2026, with improvement anticipated in H2 as self-help measures take effect.

• Targeting further cost savings to offset OpEx inflation (~GBP 15 million in 2026) and aiming for 1% procurement savings from 2027.

• CapEx guidance remains GBP 15–20 million; interest charges expected at GBP 54–56 million for 2026.

• No significant corporation tax expected in the UK and Benelux due to tax assets; group tax charge and cash tax both in low single-digit GBP millions.

• Continued focus on cost efficiencies, procurement, and working capital to maintain liquidity.