SIG (SHI) investor relations material

Trading performance and market conditions

• Like-for-like sales declined 5% in Q1 2026, with volumes also down 5% to £614m, reflecting subdued demand and poor weather early in the year.

• Benelux and Ireland achieved LFL growth, while Poland and UK Roofing showed improving trends, finishing only slightly down year-on-year.

• France, Germany, and UK Interiors were significantly impacted by adverse weather and weak market conditions.

• Pricing pressure remained high, with flat year-over-year pricing despite modest input cost inflation.

• Demand in most markets remains well below historical levels, with European construction in a cyclical low.

Operational initiatives and financial position

• Ongoing actions to drive cost efficiencies, productivity, and working capital improvements are expected to contribute incrementally through the year.

• Cash flow in Q1 was ahead of plan, and liquidity is expected to remain healthy throughout 2026.

• The £90m revolving credit facility remained undrawn during the period.

• Recent increases in oil and gas prices are expected to drive further input cost inflation, which will be passed through as needed.

Outlook and guidance

• Trading improved from March, with a 2-3% LFL decline expected for March and April combined.

• Prior year comparators ease from May, supporting expectations for further improvement in LFL sales as the year progresses.

• H1 2026 profit is expected to be lower than H1 2025, but a stronger H2 is anticipated, targeting a robust full-year performance.

• The Board remains confident in achieving a 3-5% operating margin in the medium term, supported by portfolio optimisation under Vision 2030.

• Uncertainty remains due to global events, notably the Iran war, impacting the timing and shape of market recovery.