Sig Plc · LSE:SHI
Sig — Sheffield Insulations Group — H1 2025 Earnings Presentation
32 slides from Sig's earnings presentation, Aug 6, 2025
Slide 1: SIG plc H1 2025 Results
SIG plc H1 2025 Results 5 August 2025
Slide 2: H1 2025 Results Agenda
H1 2025 Results Agenda Ian Ashton, CFO 1 2 3 Overview Financial Results Business Review 2
Slide 3: Overview
Overview
Slide 4: New CEO Pim Vervaat joins SIG on 1 October 2025
New CEO Pim Vervaat joins SIG on 1 October 2025 Strong track record of creating shareholder value in Europe-focused global industrial companies • Appointed CEO from 1 October • Significant experience in decentralised European business models • Success in delivering value in public company and privat
Slide 5: H1 2025 Overview
H1 2025 Overview Continued sales Good strategic Strong cost and outperformance in weak and operational cash discipline markets progress • Group reported revenue of • £21m yoy operating cost • UK Interiors turnaround driving £1.3bn, up 1% LFL reduction before inflation strong sales and positive • Res
Slide 6: Financial Results
SIG Financial Results
Slide 7: Key financials
Key financials £'m H1 H1 2025 2024 • Market headwinds offset by continued market out performance, driving LFL growth of 1.5% Revenue 1,304 1,317 LFL sales growth 1.5% (6.4)% • Gross margin continues to be well managed – decline Gross profit 315 325 reflects ongoing competitive pricing pressures in c
Slide 8: Revenue
Revenue £(13)m £31m £(13)m £(18)m £1,317m £1,304m H1 2024 LFL - volume LFL - pricing Branch changes Working days/FX H1 2025 • Positive momentum in difficult markets, with year-on-year volumes increasing in the half • Purchase price deflation and sales pricing pressures lead to c1% deflation impact o
Slide 9: Revenue trends
Revenue trends Volume, price and total LFL trend yoy 4.0% 2.0% Volume Total LFL - Pricing (2.0)% (4.0)% (6.0)% (8.0)% Q1 24 Q2 24 Q3 24 Q4 24 Q1 25 Q2 25 • The Group returned to LFL growth despite ongoing market softness; volumes up c2% in H1 2025 • All businesses other than UK Specialist Markets an
Slide 10: Operating profit bridge
Operating profit bridge £8m £(9)m £(8)m £15m £12m £21m £(8)m H1 2024 Sales volume Pricing Other GM changes Opex inflation Opex savings H1 2025 • Positive underlying volumes offset by competitive sales pricing • Other GM changes includes lost GP from closed branches (£6m) • Operating cost inflation o
Slide 11: Free cash flow
Free cash flow Working capital % of LTM sales: H1 2023: 10.6% H1 2024: 10.3% £35m H1 2025: 10.1% £54m £6m £13m £8m £18m £25m £0m £2m £9m Underlying Lease Capex Working Cash Operating Interest and Tax Free cash EBITDA payments capital exceptionals & cash flow financing outflow other • Working capital
Slide 12: Balance sheet
Balance sheet • Liquidity remains robust; RCF undrawn throughout the period and to date • Net debt includes £333m of lease liabilities on fleet and estate, up c4% on year end • Leverage increased due to rise in lease liabilities and free cash outflow; LTM EBITDA stable Liquidity Net debt and leverag
Slide 13: Technical guidance – FY 2025 expectations
Technical guidance – FY 2025 expectations • Inflation: o Flat to slightly positive yoy input cost inflation for FY 2025 in aggregate; offset on top line by pricing pressures in market o Operating cost inflation expected to be approximately 2-3%; includes UK NIC impact of c£3m p.a. on full year basis
Slide 14: Business Review
SIG Business Review
Slide 15: SIG overview
SIG overview Our Pan-European operations Ireland Poland 7% Germany 3% 7% Operating profit1 UK 50% by region France H1 2025 33% 420 6,600+ c1,100 BRANCHES COLLEAGUES DELIVERY ACROSS SIX FLEET GEOGRAPHIES Note: 1) Underlying operating profit adjusted to exclude Group overhead and Benelux loss. 15
Slide 16: Business performance
Business performance H1 2025 Operating LFL1 margin2 H1 2025 Revenue & Operating Profit 2 (£m) UK Interiors 8% 1.1% Germany 0% 0.3% France Roofing (4)% 2.5% UK Roofing 6% 3.0% Poland 3% 1.1% UK Specialist Markets (1)% 1.9% France Interiors (7)% 2.3% Ireland 3% 2.7% Revenue Operating profit Benelux 3%
Slide 17: Our strategy: Improving our performance
Our strategy: Improving our performance To medium-term Improving the way we operate target now Improving our performance 5% margin Positioning to win in long-term growth market 4 Pillar Grow Execute Modernise Specialise strategy Revenue growth ahead of UK Interiors and Benelux France Interiors New s
Slide 18: UK Interiors: Turnaround actions driving improved performance
UK Interiors Turnaround actions driving improved performance Sales acceleration Q3 2024 Q4 2024 Q1 2025 Q2 2025 H1 25 market demand at flat LFL sales (9)% (3)% 4% 12% to slightly negative1 Reconnected with key customers, suppliers, and winning large projects London Manchester Merseyside Canary Wharf
Slide 19: UK Interiors
UK Interiors Turnaround actions driving improved performance Realigned operating cost base Returned to operating profit3 in H1 2025 £2.8m c 15% £ 3.4m Reduction in Annualised headcount1 cost reduction2 £(1.2)m H1 2024 H1 2025 Notes: 1) Ongoing workforce is now c15% lower than 1 January 2024. 2) Perm
Slide 20: France
France Revenue Revenue LFL sales Profit1 Profit1 Trading £m H1 2025 H1 2024 H1 2025 H1 2025 H1 2024 France Interiors 96.4 105.1 (7)% 2.2 3.6 Markets remain challenging at c(10)% France Roofing 199.2 214.9 (4)% 5.0 4.9 Interiors and c(5)% Roofing France 295.6 320.0 (5)% 7.2 8.5 Roofing profit benefit
Slide 21: Germany
Germany Trading £m H1 2025 H1 2024 Market remains challenging with residential remaining in Sales 216.9 219.9 decline LFL sales 0% (3)% Strong price pressure and investment phasing impacting Operating profit1 0.7 3.0 profit Strategic development Investment in sales teams and sales training to suppor
Slide 22: UK Roofing
UK Roofing Trading £m H1 2025 H1 2024 Sales 190.4 182.1 Market broadly flat to low growth LFL sales 6% (2)% Sales driven by initiatives and new-build projects; Operating profit 1 5.8 4.9 RMI project sales remain weak Strategic development Investment in sales teams, sales training and leadership trai
Slide 23: H1 2025 Summary & Outlook
H1 2025 Summary & Outlook H1 2025 FY 2025 Outlook Medium to longer term • Continued robust performance in • No change to FY expectations • Business model and operating weak markets leverage will help drive quick • Cautious on prospects for and material margin rebound meaningful market improvement in
Slide 24: Appendix
Appendix SIG plc H1 2025 Results
Slide 25: Market outlook
Market outlook Construction output forecast in Europe Evolution of expected construction output in Europe (% change in real terms) Europe 11.7% 6.5% 5.5% 6.6% 3.0% 4.5% 1.8% 1.4% 3.4% 1.5% 2.1% 0.4% 0.0% (3.4%) 2.4% 2.3% (4.4%) 2.0% 2021A 2022A 2023A 2024A 2025E 2026E 2027E 2021A 2022A 2023A 2024A 2
Slide 26: Growth drivers – long-term
Growth drivers – long-term Drivers of structural demand within European construction benefit SIG’s portfolio 1 Energy efficiency and decarbonisation regulations 2 Ageing buildings across Europe 3 Housing undersupply and pent-up demand Regulations support long-term demand for insulation and Significa
Slide 27: Benelux
Benelux Trading £m H1 2025 H1 2024 Sales 46.0 54.4 £1.6m improvement in operating profit from H2 2024 LFL sales 3% (12)% restructuring Operating profit1 (0.8) (2.4) Market broadly flat in residential projects Strategic development Closure of seven branches in Q4 2024 in the Netherlands, consolidatin
Slide 28: Underlying financials by segment
Underlying financials by segment Operating Change Revenue profit/(loss) vs PY Operating Change £'m LFL £'m £'m margin vs PY UK Interiors 263 8% 2.8 4.0 1.1% 1.6% UK Roofing 190 6% 5.8 0.9 3.0% 0.3% UK Specialist Markets 117 (1)% 2.2 (0.1) 1.9% 0.0% Total UK 571 5% 10.8 4.8 1.9% 0.8% France Interiors
Slide 29: Other items
Other items PBT Cash Impact Impact H1 H1 H1 £'m 2025 2024 2025 Amortisation of acquired intangibles (1.0) (1.1) - 1 Impairment charges (22.1) - - 2 Net restructuring costs 0.2 (2.8) (4.2) Cloud based ERP implementation costs (0.3) (0.4) (0.3) Other 0.5 (0.3) (0.1) Impact on operating profit (22.7) (
Slide 30: Cash flow and net debt
Cash flow and net debt £'m H1 H2 H1 2025 2024 2024 Underlying operating profit 15 13 12 Add back: Depreciation & amortisation 39 40 40 Underlying EBITDA 54 54 52 Working capital movements 13 6 (8) • Working capital inflow, reflecting working capital initiatives including Repayment of lease liabiliti
Slide 31: Net debt bridge
Net debt bridge £13m £41m £2m £54m £13m £5m £25m £8m £524m £497m FY 2024 Underlying Working Capex Cash Interest and Tax Lease additions/ Provisions/ FY 2025 Net Debt EBITDA capital exceptionals financing renewals Other/FX Net Debt 31
Slide 32: Number of trading sites
Number of trading sites 31 Dec 30 Jun Opened Merged Closed 2024 2025 UK Interiors 30 - - - 30 UK Roofing 111 - - (2) 109 UK Specialist Markets 29 - - - 29 Total UK 170 - - (2) 168 France Interiors 40 1 - (1) 40 France Roofing 100 1 - (5) 96 Total France 140 2 - (6) 136 Germany 50 - (1) - 49 Poland 5
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