Sig is a leading distributor of specialist building products in europe.

The group has product and service offerings of significant scale with strong positions in its three core markets of insulation and energy management, interior fit out and roofing products.

Growth drivers

  • Leveraging the Group's specialist distribution model across Western / Central Europe
  • Positive regulatory developments especially in insulation and energy management
  • Increasing market penetration through targeted investment in branch network, including acquisitions which meet strict financial performance criteria
  • Maturation of new branches
  • Greater exposure to key national account customers
  • Consolidation opportunities in specialist markets

Strong market positions and resilient operating model

  • Geographical diversification and sector balance – residential and non-residential; new build and RMI; public and private
  • Diversified customer base from major construction companies to small local contractors
  • Specialist expertise which acts as a barrier to entry
  • Strong customer relationships based on high service levels, technical expertise and supply chain management competence
  • Proactive and effective credit management
  • Healthy balance sheet, low leverage, substantial headroom in banking facilities and covenants
  • Effective control of cost base

Strategic initiatives

  • Working more closely together to improve business performance
  • Four workstreams covering procurement, commercial vehicles, branch network and eCommerce
  • Making SIG's whole greater than the sum of the parts
  • Targeting a net benefit of c.£30m from its Strategic Initiatives by 2016
  • Underpinned by Stronger Together culture change programme

Improving shareholder returns

  • Maintaining record of sales market outperformance (2-3%)
  • Continuous improvement in gross and operating margins
  • 100% operating cash conversion over the medium-term
  • Post-tax Return on Capital Employed to exceed 11% in 2015
  • Maintain a progressive dividend policy with cover of 2-3x over the medium-term