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
Global PC shipments returned to growth in the second quarter of 2020 after seeing a significant decline in the preceding first quarter due to COVID-19 related supply-chain disruptions, according to reports by two research firms. The PC market returned to growth in the quarter as production ramped up and vendors restocked their supplies to near-normal levels. The bankruptcy filing of America's oldest apparel retailer Brooks Brothers has ignited significant interest from potential buyers for the brand. WHP Global and a venture backed by Authentic Brands Group LLC and Simon Property Group, Inc., are reportedly considering bids for the retailer. WHP Global owns the ANNE KLEIN and JOSEPH ABBOUD brands. Sundial Herbal Products has recalled around 65 products, which were misbranded and currently unapproved drugs, the U.S. Food and Drug Administration said in a statement. The recall follows an order by a federal judge in June to stop distributing the company's unapproved new drugs. The affected items include herbal products and dietary supplements.
Follow RTT