SIG (SHI) Trading Update summary

Trading performance and market conditions

• Group like-for-like sales declined by approximately 7% in May and June, consistent with earlier months but below expectations.

• Subdued demand persists, especially in France, Germany, and UK Interiors, while Poland, Ireland, and UK Exteriors show more robust demand.

• Cash performance remains in line with expectations, with effective working capital and cash flow management.

Profit outlook and guidance

• Full year 2024 underlying operating profit is now expected to be £20m–£30m, below the analyst range of £36.7m–£43.0m.

• H1 2024 underlying operating profit is expected to be £10m–£12m, with a like-for-like sales decline of about 7%.

• The outlook for H2 remains cautious, with improvement dependent on market recovery, particularly in France and Germany.

Strategic and operational initiatives

• Ongoing cost reductions and efficiency initiatives are expected to support stronger H2 performance and future profitability.

• Permanent cost restructuring, modernisation, and improved commercial execution have contributed to market share growth.

• The group expects medium-term margin and profit growth from these initiatives, with operating leverage benefits as volumes recover.