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SIG slashes dividend as profits tumble

08 August 2017 09:23

Building products distributor SIG (SHI) has slashed its dividend by 31.7% to 1.25p after underlying pre-tax profit tumbled by 20% to £38.3 million in the first half.

Earnings per share fell by 23% to 4.7p and cash inflow from trading decreased by 31.1% to £41.3 million.

The company made a statutory loss before tax of £10.7 million.

Meinie Oldersma, chief executive, said that while underlying pre-tax profit was lower than the first half of last year, it represents an increase on the second half 2016.

Oldersma said there remains considerable work to be done to improve returns over the medium term.

He said the company has made good initial progress on its short-term priority to reduce leverage, which has decreased to 1.6x (net debt to EBITDA).

"Following my appointment as CEO, I commissioned a comprehensive review of the group's strategy, use of capital and cost base. The initial phase confirms that the business has real opportunity to improve profits and returns over the medium term, but also highlights the execution challenges in delivering these upsides," he added.

At 9:23am: (LON:SHI) SIG PLC share price was -9.8p at 160.7p

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