SIG returned to headline profitability after emerging from a restructuring that saw non-core operations sold and various divisions streamlined into fewer units. In fact, putting aside impairment charges and restructuring costs, and underlying pre-tax profit rose 27.3 per cent in 2011 to £81.7m – although, until a clear recovery emerges, the shares looks set to tread water.
The group now concentrates on energy management and insulation and, while chief executive Chris Davies, remained cautious at the half-year stage, the second half proved to be stronger than expected. Indeed, and while UK sales rose just 3.7 per cent to £1.2bn, progress was notably strong in continental Europe – where 56 per cent of group revenue comes from and where sales rose 11.3 per cent to £1.54bn. Revenue grew in Germany and France thanks to solid growth in the residential market, although non-residential sales remained sluggish. SIG is also maintaining investment in new sites, with 18 new locations opened during the year. Group finances are in reasonable shape, too, with net debt having fallen by £69.1m to £115.9m – helped by disposals that generated a net £30.6m. The final dividend has been reinstated as well.
Peel Hunts expect EPS of 9.1p for 2012.
| SIG (SHI) | ||||
|---|---|---|---|---|
| ORD PRICE: | 121p | MARKET VALUE: | £715m | |
| TOUCH: | 121-122p | 12-MONTH HIGH: | 155p | LOW: 75p |
| DIVIDEND YIELD: | 1.9% | PE RATIO: | na | |
| NET ASSET VALUE: | 120p* | NET DEBT: | 16% | |
| Year to 31 Dec | Turnover (£bn) | Pre-tax profit (£m) | Earnings per share (p) | Dividend per share (p) |
|---|---|---|---|---|
| 2007 | 2.46 | 124 | 66.3 | 26.7 |
| 2008 | 3.05 | 33.0 | 3.80 | 8.30 |
| 2009 | 2.72 | -55.3 | -9.70 | nil |
| 2010 | 2.67 | -80.8 | -13.0 | nil |
| 2011 | 2.80 | 7.50 | nil | 2.25 |
| % change | +5 | - | - | - |
Ex-div: 2 May Payment: 30 May *Includes intangible assets of £494m, or 84p a share | ||||
