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Britain’s SIG expects strong earnings but supply snags to persist By Reuters


© Reuters.

(Reuters). -SIG Plc, a UK-based provider of building materials predicted that it would surpass its previous earnings estimates on Tuesday but also warned that there will be a shortage in the materials industry this year.

SIG Plc, which provides roofing and insulation materials for Britain and some European countries, stated that trade in July-August was “solid” in spite of the disruptions to supply which included a shortage in truck drivers.

Supply bottlenecks in ports and warehouses have affected companies from all industries. Due to the shortage of supplies, UK’s construction sector grew in August at the slowest rate since 2021.

The company released a statement saying that it expects a continuing impact from material shortages. This could prove to be even more severe than H1 and could continue for a long time.

SIG expects an underlying operating profit of full year above its previous expectations, provided that supply limitations don’t worsen.

SIG, a Sheffield company, reported an underlying operating profit (or $16.6 million) in the six-months ended June 30. This is compared to a loss (42.9 million pounds) a year ago.

($1 = 0.7317 pounds)

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