Plus   Neg

SIG Sees Significantly Lower FY Underlying Profitability - Quick Facts

SIG Plc. (SHI.L) said that it expects, in both the specialist distribution and roofing merchanting businesses, significantly lower underlying profitability for the full year than its previous expectations.

"The Group has been reporting during the year a deterioration in the level of construction activity in key markets and highlighting a number of key indicators pointing to further weakening of the macro-economic backdrop, notably in the UK and in Germany,"the company said.

In a separate press release, SIG said that it agreed to sell its Air Handling Division to France Air Management SA for an enterprise value of 222.7 million euros or 198.3 million pounds on a cash free, debt free basis. It is expected to complete the sale in the first-quarter of 2020.

The company noted that it will use the net cash proceeds of at least 130 million pounds to reduce its financial indebtedness. The majority of any residual net cash proceeds will be used to make a return to shareholders.

Separately, SIG said it agreed to sell Building Solutions (National) Limited to Kingspan Group for a consideration of 37.5 million pounds on a cash free, debt free basis.

For comments and feedback contact: editorial@rttnews.com

Business News

Editors Pick
Apple Inc. is taking necessary precautions including Covid-19 testing for those employees returning to work at its headquarters in Silicon Valley, Bloomberg reported citing people familiar with the process. The company, which opened its main Apple Park office in May bringing back some hardware and software engineers, plans the gradual reopening of the building keeping the coronavirus safeguards. A U.S. appeals court has blocked the sales of Bayer AG's dicamba-based Xtendimax in the United States. The three-judge panel in the U.S. Court of Appeals for the Ninth Circuit ruled that the US Environmental Protection Agency (EPA) overstated the protections and substantially understated or ignored the risks related to the use of dicamba-based herbicides. Tesla Chief Executive Officer Elon Musk has called for a breakup of Amazon after the online retail giant refused to publish an upcoming book about COVID-19. Writer Alex Berenson said on Twitter that Amazon refused to publish his booklet about the coronavirus as it did not comply with the company's guidelines. Berenson is a former New York Times reporter.
Follow RTT