I have sold out this morning as I am concerned that there will be bad debt ramifications from the collapse of Carillion. When a major contractor like this goes down it takes time for the implications to be fully felt, but there is no doubt a lot of companies are going to have to take a write-off of their debts. Whether SIG is one of those I have no inside knowledge, but given its position in the construction industry I would be surprised if it is unaffected.
This is my only holding with potential exposure but I would suggest others review their portfolios to see where companies might be at risk.
I will be looking for an opportunity to re-enter SIG once the position on this is clear, but with the announcement about misreporting cash the other day and the chart looking very toppy, I am thinking around 150 as the target.
Up over 70% since my purchase in January my instincts say this is too much and I should be cashing out. The momentum seems very strong though and with European economies running ahead we could be in for good trading news.
""Never forget your customer" is the kind of business mantra that belongs on page one of the management handbook. And yet somehow LSE:SHI:SIG failed to heed this message after it became too distracted by its own internal restructuring.The ..."
the ship fingers crossed and with the low value of sterling v the euro it also helps alot. 5% Divi and potentially improved trading we could be heading up towards £1.40 a share in next 3-6 months imho.
"Looking at LSE:SHI:SIG's share price chart, you'd think it had lost a fight with a wrecking ball. The most recent damage was caused by a profits warning that forced the building supplier's boss out the door. But after Friday's full-year update, ..."
No forward looking comment which is a bit disappointing, but nonetheless I have added to my holding this morning to give an average in price of 97.5 which I am happy with. Effectively the price has just returned to where it was ahead of yesterdays nervousness.
I suspect that SIG threw everything in to get the first half numbers then saw a very weak second half in terms of sales volumes which in turn has seen them fail to hit hoped for rebate targets. In effect the first half will have to be corrected as well as posting a poor second half.
I think it could be grim tomorrow.
The market is clearly in a bit of a funk about the possibility of bad news tomorrow hence the fall of over 6.5% at the moment. I have been out for a while whilst continuing to watch, but am tempted to return for a recovery over the next couple of years, or a possible takeover. The question is whether to wait and see what the statement brings, or have a bit of a punt ahead of it in the hope that there is no new negative news.
Year end results to be announced tomorrow. Forecast to be £70-80m which would be a great improvement, but I don't think it will increase the share price as the market is expecting it. I guess if it is at the top end then we should see some movement, but my guess is slap bang in the middle.
Perhaps a new leader could get this out as a take over target, that would be the best result for all.
Specialist construction material supplier SIG (SHI) is continuing with its restructuring although there is some caution about the impact of Brexit later in the year.
Jefferies analyst Sam Cullen retained his buy recommendation and target price of 140p on the shares, which fell 6.1% to 100.6p yesterday.
SIG has delivered a good first half of the year, increasing profits by 20% and controlling the controllables, he said. Despite the uncertainty caused by Brexit, the restructuring of the business remains on track and the UK has seen flat like-for-like sales performance in June and July. However, with September and October accounting for c.30% of total profits we exercise some caution and make no changes to numbers at this stage.
He said the outlook for the second half of the year remained uncertain given the UK saw a slowing of demand immediately pre and post the referendum but it was still too early to discern the impact for the full year. "
Contrarian investment veteran Alastair Mundy has upped his stake in specialist building materials supplier SIG (SHI) following a profit warning which knocked its share price 32% last year.
Mundy increased his holding to 10.4% of the business worth £81.8 million at a share price of 133p, down from above 200p a year ago.
The manager holds the unusual title of head of contrarian investment at Investec, and heads the companys £990 million UK Special Situations fund, the largest shareholder in SIG.
Shares in FTSE 250 constituent SIG tumbled 22% in a single session in October last year as it warned that weakening demand was weighing on sales to continental Europe, guiding full-year profit expectations down from £98 million previously to between £85-£90 million.
Analysts remain downbeat on the stock with nine out of 14 holding it on a negative outlook. UBS last month cut its target price from 125p to 115p. "
Read Panmure Gordon & Co's note on SIG PLC (SHI), out this morning, by visiting https://www.research-tree.com/company/GB0008025412
"SIG, the specialist building materials distributor, has issued a trading in-line AGM update. After experiencing a surprise dip in sales LFLs during 3Q15 (-0.9%), LFLs stabilised during 4Q15 (+0.4%) and expanded +1.1% during the four months to Apr-16. Acquisitions completed during FY15 are contributing more than expected to sales and we are raising our FY16 sales estimate by 2.4%. Whilst it is possibly too early to move earnings estimates higher, SIG is once again on a positive footing. However, this is not reflected in the..."
"SIG's rating was retained at 'buy' but its target was lowered to 160p from 165p by Canaccord Genuity after the building products firm reported its full year results.
The group posted a 1.4% drop in revenue to £2.67bn on Wednesday, hurt by foreign exchange movements in Europe and weak trading.
Pre-tax profit increased 31.5% to £51.3m, but it reflected the previous year's profits being slashed due to costs associated with the disposal of businesses.
Chief executive Stuart Mitchell said that the company's full year had been "adversely affected" by market conditions. However, he said the company had taken steps to cut costs to support growth in 2016.
"While the group continues to face some challenges this year (minimal product price inflation, competitive backdrop and stretched balance sheet), we retain our Buy in view of an undemanding valuation and some offsetting benefits this year of currency gains, a good start to the year, cost savings and organic growth initiatives," said Canaccord analysts Aynsley Lammin and Matthew Walker .
"While we highlight the potential medium-term value in the shares, a sustained recovery in Europe and the UK, operating margins moving to over 4.5%, deleveraging and retaining more of the cost savings are required for the share price to see a sustained recovery."
The analysts said the target was lowered due to higher debt levels than previously assumed. Net debt at 31 December 2015 increased to £235.9m from £126.9m in 2014.
Canaccord expects earnings per share of 12.2p and 14.0p for 2016 and 2017 respectively. The 2016 estimate was left unchanged from prior projections but the 2017 was down from the previous 14.3p expected."
<b>SIG : Chairman And Directors Buy Shares (DIRECTOR DEALINGS)</b>
11/17/2015 | 08:34am US/Eastern
LONDON (Alliance News) - Building products company SIG PLC on Tuesday said its chairman and two non-executive directors bought shares in the company.
Chairman Leslie van de Walle bought 25,000 shares in the company at 126.48 pence per share, increasing his holding to 75,000 shares.
Non-Executive Director Melvyn Ewell bought 7,850 shares at the same price, increasing his to 16,450 shares, and Non-Executive Director Janet Ashdown bought 11,750 shares, also at the same price, to increase hers to 33,450 shares.
All the transactions were carried out on Tuesday, a day after SIG affirmed its reduced guidance for 2015 as trading conditions improved in October. The company had issued a profit warning last month as it was hit by weak markets in Europe and by a slowdown in the UK repair, maintenance and improvement market.
Shares in SIG were up 1.8% on Tuesday to 128.10p.
Copyright 2015 Alliance News Limited. All Rights Reserved., source Alliance News
<b>SIG plc 32% Potential Upside Indicated by JP Morgan Cazenove
Posted by: Ruth Bannister 17th November 2015</b>
SIG plc with EPIC/TICKER LON:SHI had its stock rating noted as Reiterates with the recommendation being set at NEUTRAL this morning by analysts at JP Morgan Cazenove. SIG plc are listed in the Industrials sector within UK Main Market. JP Morgan Cazenove have set their target price at 165 GBX on its stock. This now indicates the analyst believes there is a possible upside of 32% from todays opening price of 125 GBX. Over the last 30 and 90 trading days the company share price has decreased 52 points and decreased 78 points respectively.
SIG plc LON:SHI has a 50 day moving average of 162.76 GBX and a 200 day moving average of 190.96 GBX. The 52 week high for the share price is currently at 212.2 GBX while the 52 week low is 117 GBX. There are currently shares in issue with the average daily volume traded being 2,167,253. Market capitalisation for LON:SHI is £711,755,382 GBP.
SIG plc is a United Kingdom-based distributor of specialist building products in Europe. The Company is engaged in is the supply of specialist products to construction and related markets. The Company product and service offerings three core markets include insulation and energy management, interior fit out and roofing products. The Company operates in two segments: UK & Ireland and Mainland Europe.
Jefferies Group Reaffirms Buy Rating for SIG plc (SHI)
November 17th, 2015
SIG plc (LON:SHI)s stock had its buy rating restated by analysts at Jefferies Group in a report issued on Tuesday, AnalystRatings.NET reports. They currently have a GBX 250 ($3.80) target price on the stock. Jefferies Groups target price would suggest a potential upside of 108.33% from the stocks current price.
SHI has been the subject of a number of other research reports. Goodbody Stockbrokers Ltd reissued a buy rating on shares of SIG plc in a report on Tuesday, August 11th. Citigroup Inc. reaffirmed a buy rating and set a GBX 230 ($3.50) target price on shares of SIG plc in a research note on Friday, August 7th. Stifel Nicolaus reissued a buy rating and set a GBX 200 ($3.04) price target on shares of SIG plc in a research report on Friday, October 23rd. Deutsche Bank reaffirmed a hold rating and issued a GBX 184 ($2.80) target price on shares of SIG plc in a report on Friday, July 31st. Finally, Panmure Gordon reissued a buy rating and set a GBX 195 ($2.97) price objective on shares of SIG plc in a report on Monday. Eight analysts have rated the stock with a hold rating and seven have given a buy rating to the company. The stock presently has a consensus rating of Hold and an average target price of GBX 204.14 ($3.11).
SIG plc (LON:SHI) opened at 126.9000 on Monday. The companys 50-day moving average is GBX 153.38 and its 200 day moving average is GBX 185.74. The stocks market capitalization is GBX 750.18 million. SIG plc has a 1-year low of GBX 117.00 and a 1-year high of GBX 212.20.
SIG pins hopes on massive savings
By Harriet Mann | Mon, 16th November 2015 - 14:23
SIG pins hopes on massive savings Less than four weeks after a savage profits warning triggered a dramatic sell-off, SIG (SHI) has, at least temporarily, plugged the flow of equity leaving the specialist building materials company. Full-year profit guidance remains unchanged, but trading did improve in October, and cost cuts and fixing its supply chain could save tens of millions of pounds.
After underlying pre-tax profit jumped to £98 million in 2014, SIG last month slashed expectations to more like £85-£90 million this year following a difficult third-quarter in France and the UK Repair, Maintenance and Improvement (RMI) sector. This warning wiped out a third of the group's market value in about a month, as the shares plummeted from 179p to a low last week of 117p.
But like-for-like numbers were positive in both UK & Ireland and Mainland Europe in October, and while we shouldn't read too much into one month's data, it's certainly good news.
And at a capital markets day, SIG chiefs will tell major shareholders and analysts how it will cut costs and grow earnings. The numbers bandied around ahead of the presentations are significant.
Changes to the supply chain could save £20 million, and growing its air handling and offsite construction businesses over the next three years should make SIG a further £30 million. Together with £10 million of ongoing procurement savings, the company could grow profits by an extra £60 million by 2018. Incredibly, SIG believes a possible phase two of supply chain changes could save an additional £30 million.
As most capital market days reveal little new information on a company, <b><i>Panmure Gordon analyst Adrian Kearsey reckons it is "refreshing" SIG has announced a clear target for earnings growth, especially given its strong record of achieving targets. The group has been performing ahead of targets set two years ago in a three-year plan to drive £30 million of savings.
"The plans represent a material potential upside for investors," explains Kearsey. "Relative to our FY17 forecasts (we currently do not have published FY18 numbers) this represents a 46.4% uplift to PBT." He thinks SIG will make £85.3 million, or earnings per share of 10.5p this year.</i></b>
Despite basing the trading update on only one month's data, buyers have jumped on the news which has sent SIG shares 6% higher to 128p. They now trade on 10.6 times earnings estimates for 2016, but that seemingly modest rating is justified by both the business climate and execution risk. It will require an improving trend and evidence of massive savings before investor confidence is truly restored.
<b><i>Shares in SIG (SHI) jumped by 6 per cent after the insulation and roofing materials specialist delivered an upbeat trading statement, although it cautioned that trading conditions remain challenging in France and the UK RMI sector. It has also identified further cost savings that could boost profits by £60m by 2018</b></i>. We stay buyers.
<b>SIG plc 10.7% Potential Upside Indicated by Liberum Capital
Posted by: Ruth Bannister 16th November 2015</b>
SIG plc using EPIC/TICKER code LON:SHI has had its stock rating noted as Reiterates with the recommendation being set at HOLD today by analysts at Liberum Capital. SIG plc are listed in the Industrials sector within UK Main Market. Liberum Capital have set their target price at 135 GBX on its stock. This is indicating the analyst believes there is a potential upside of 10.7% from the opening price of 122 GBX. Over the last 30 and 90 trading days the company share price has decreased 53.7 points and decreased 75 points respectively.
SIG plc LON:SHI has a 50 day moving average of 163.93 GBX and a 200 Day Moving Average share price is recorded at 191.27 GBX. The 1 year high stock price is 212.2 GBX while the 52 week low for the share price is 117 GBX. There are currently 14,376,774,204 shares in issue with the average daily volume traded being 2,167,253. Market capitalisation for LON:SHI is £754,436,267 GBP.
SIG plc is a United Kingdom-based distributor of specialist building products in Europe. The Company is engaged in is the supply of specialist products to construction and related markets. The Company product and service offerings three core markets include insulation and energy management, interior fit out and roofing products.
"Less than four weeks after a savage profits warning triggered a dramatic sell-off, LSE:SHI:SIG has, at least temporarily, plugged the flow of equity leaving the specialist building materials company. Full-year profit guidance remains unchanged, ..."
<b>SIG plc Given Buy Rating at Panmure Gordon (SHI)
November 16th, 2015</b>
SIG plc (LON:SHI)s stock had its buy rating reiterated by analysts at Panmure Gordon in a research note issued on Monday, AnalystRatings.NET reports. They presently have a GBX 195 ($2.97) price target on the stock. Panmure Gordons target price indicates a potential upside of 62.50% from the companys current price.
In related news, insider Robertson,Douglas bought 10,000 shares of the firms stock in a transaction that occurred on Monday, October 26th. The stock was purchased at an average price of GBX 135 ($2.05) per share, for a total transaction of £13,500 ($20,535.44).
Shares of SIG plc (LON:SHI) opened at 127.3000 on Monday. The firm has a 50-day moving average of GBX 153.38 and a 200 day moving average of GBX 185.74. SIG plc has a 12-month low of GBX 117.00 and a 12-month high of GBX 212.20. The stocks market capitalization is GBX 752.54 million.
BRIEF SIG sees FY underlying pretax profit of 85 90 mln stg
Nov 16 (Reuters) SIG Plc :
Group is targeting 20 mln stg of cost savings from implementation of step 1 of its supply chain strategy
Targeting 30 mln stg of additional profit from growth in its air handling and offsite construction businesses over next three years
These initiatives provide group with a 60 mln stg profit improvement opportunity by 2018
SIG believes there is potential for an additional 30 mln stg of savings from enacting second step of its supply chain strategy
Continues to expect underlying profit before tax to be in range of 85-90 mln stg for full year
Source text for Eikon: ... Further company coverage: SHI.L
SIG plc ("SIG" or "the Group"), a leading distributor of specialist building
products in Europe, is hosting a Capital Markets Day in London today at
The key themes of the day are the reshaping of SIG's supply chain, based on a
two-step strategy to reduce its cost to serve, and how it intends to grow its
value added sales, with a focus on air handling and offsite construction.
The Group is targeting £20m of cost savings from the implementation of step
one of its supply chain strategy, and £30m of additional profit from growth in
its air handling and offsite construction businesses over the next three
years. Together with ongoing procurement savings, these initiatives provide
the Group with a £60m profit improvement opportunity by 2018.
Furthermore SIG believes there is potential for an additional £30m of savings
from enacting the second step of its supply chain strategy.
The presentation will be available on www.sigplc.com later in the day.
On 22 October 2015 SIG released a trading update in which it cited difficult
Q3 market conditions, particularly in France and the UK RMI sector.
Trading improved in October, with positive LFLs in both UK & Ireland and
Mainland Europe. The Group continues to expect underlying profit before tax
to be in the range of £85-90m for the full year.
Simon Bielecki, Head of Investor Relations + 44 (0)
Richard Mountain/Nick Hasell +
44 (0) 20 3727 1340
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