LONDON (dpa-AFX) - Shares of SIG plc (SHI.L) were gaining around 6 percent in the early morning trade in London after the distributor of specialist building products Friday reported that its third-quarter like-for-like sales grew 17 percent from the Covid-affected prior year, and the growth was 9 percent against the pre-pandemic 2019.
Looking ahead for the year 2021, the company said it is now more confident in near term outlook and expects full year underlying operating profit to be ahead of current market forecasts. The outlook reflects continued strong sales momentum and operating performance.
In its trading update for the third quarter, the company confirmed that the solid trading performance seen in July and August continued through September.
UK Distribution performance moved, as expected, back to growth against 2019 monthly comparators.
France and UK Exteriors businesses, and Poland business, continue to perform very strongly. Ireland was, as anticipated, a further driver for the Q3 acceleration.
The company further noted that profitability continued to improve in the quarter compared to the first half, despite the typical modest seasonal dip in sales volumes in August.
Looking ahead, the company said its order books continue to build and the outlook for materials shortages has become clearer amid ongoing supply issues.
The company said, 'We are mindful of the potential impact of these shortages should the situation persist for an extended period, but remain highly confident in the effectiveness of our supply chain management and commercial agility.'
In London, SIG shares were trading at 49.24 pence, up 6.25 percent.
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