SIG plc - First-half result highlights extent of challenge

Davy Research
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To say it has been an eventful few months for SIG is an understatement. A new management team, a new strategy, significant Board changes and a new main shareholder point to the massive level of change across the group. There has also been a £165m (gross) equity raise, which provides greater financial security, albeit at a cost - with the number of shares in issue effectively doubling. Interim results reflect the extent of the challenges facing SIG, evident in a loss before tax of £125m with significant trading losses incurred in the UK. SIG expects to remain loss making in H2, albeit at a more modest rate, and the turnaround of what has been a perennially struggling business will clearly take time.