NEWSROUND SIG trading update shows recovery
Specialist building materials distributor SIG plc saw sales recovery solidly ahead of expectations in the second half of 2020, according to a trading update for the year. Like-for-like revenues for the fourth quarter rose up 4% compared to previous year, reflecting the group’s Return to Growth strategy, which is starting to deliver better sales performances, thanks in part to the robust demand in RMI markets in the UK and also in France. As a result, the Board expects to report, subject to audit, full year revenues of around £1,870m, and an underlying operating loss of between £57m and £61m for the full year, which is at the better end of the range of previous expectations. Profitability continued to improve throughout the second half after the underlying operating
OBITUARY Nigel Timms
Nigel Timms has passed away after a long illness. Nigel is best known in the building industry for his knowledge and passion about bricks. Latterly national specification manager at Wolseley UK and then a brick consultant, Nigel started out in insurance but soon fund that his interests lay with the building sector. His early years were spent working with Millington’s and he then spent many years working in the Wolseley group, and with the Build Center brand. His family soon grew to accept his passion for bricks as lots of holidays and days out were spent looking at building sites and examining bricks to see if they were suitable for his next project. He is survived by his wife, Edwina, four children and 12 grandchildren.
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Products in perfect storm
loss of £43m in the first half. The update reports that the branch and customer-centric restructuring in the UK is progressing to plan and that, with the new Distribution organisation structure fully in place, the business started to reverse its decline over the prior year in the last weeks of 2020. The group reports that the early signs for a recovery in market share are “reassuring, and the plan is on track.”
The group opened a new 10,288sq ft SIG Roofing site on the Slough Trading Estate close to J6 of the M4 i on Monday February 1.
Sovini opens flagship branch
Builders’ merchants Sovini Trade Supplies, part of The Sovini Group, has opened a flagship store and distribution centre to support its continued growth across the North West. The 2.4 acre site on Heysham Road in Bootle, Merseyside is the fifth site for the company, and will enable STS to build on its product and service offering. The centre will support the de- livery of multi-million-pound con- tracts with M&Y, Liberty Group and Sovini Property Services, as well as expanding the provision to meet growing customer demand from both trade and public. In addition, the Heysham Road site will support STS’ Corporate Social Responsibility pledge, as profits are reinvested into com- munities through The Sovini Group. The site will also support the Group as it works towards reducing the overall ‘carbon foot- print’ associated with its business activities. towards ‘net zero’.
of shortages Shortages of building materials hit the headines last month when both
Lakes Showering Spaces sales and marketing director, Mike Tattam, and Builders Merchants Federation CEO John Newcomb were featured in The Guardian and The Times. Tattam said: “We are facing a perfect storm caused by a number of factors, including a shortage of containers because of unprecedented demand, ships mothballed with their containers and crew, and carriers reluctant to take bookings for the UK because of the congestion at UK ports. “Shipping companies are not even quoting contract rates, it’s all based on spot pricing, where you get what’s available at a price, on that day. “Currently we are looking at the cost for a container of around $15,000. This time last year it was $2,100. We’ve even heard reports of costs going to $30,000, and that’s untenable. It’s having a very serious impact and it’s a situation that’s getting rapidly worse.” Newcomb, who is co-chair of the Construction Leadership Council’s Brexit Movement of Building Products and Materials Group, said: “We’ve had a report of a merchant being quoted as far ahead as August availability for some roofing products, particularly pitched roof tiles.” It’s the second time that Newcomb has warned of impending building product shortages, having been featured in several media reports before Christmas.
This time he said: “Merchants have seen an exceptional demand for building materials since the first lockdown. We are also facing significant issues with timber supplies.”
NEWS IN BRIEF
Travis Perkins has joined the BMF ETIM Trailblazers group, which aims to fast track the implementation of the ETIM model of data classification which will simplify the transfer of product information between manufacturer and merchant. More than 20 other merchant and supplier members have also signed up as ETIM Trailblazers, including buying groups NMBS and h&b. ETIM is a system of classifying technical product data that ensures all users employ the same terms to describe the same attributes and values. The BMF is implementing the model in the UK for building, HVAC and plumbing products.
Forterra, the building materials manufacturer, is expecting better profits thanks to sales contuing their upward trend during the back end of last year. A trading statement to the City last month showed that sales of bricks and blocks were 6% higher in November and December than the previous year. As a result, the company expects its pre-tax profits to be somewhere in the region of £16m, with sales around £290m.
Keyline Civils Specialist has joined the Govern- ment’s Kickstart Scheme as part of its ongoing commit- ment to bridging the skills gap in the construction in- dustry, offering 21 positions for young, unemployed 16-24 year olds with initial six month work placements across various divisions within the company, and as part of 800 placements across the Travis Perkins Group.
www.buildersmerchantsjournal.net February 2021
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