Avonside collapse cost SIG £5m

Grant Prior 1 year ago
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The failure of the country’s largest roofing contractor Avonside last September cost materials supplier SIG £5m.

The hit was revealed in a trading update today which revealed strong growth at the insulation and building products supplier despite the Avonside blow.

SIG said full year like-for-like sales were up 17% in 2022 increasing revenue to £2.74bn with underlying operating profits are expected to be up to £80m from £41m in 2021.

The update said: “This performance was achieved despite a one-off loss of c£5m in H2 resulting from the administration of Avonside, a major UK roofing contractor and one of the Group’s largest customers.

“Whilst disappointing, the Group believes that this situation arose from company-specific factors. Customer bad debt metrics more broadly remain in line with management’s expectations.”

CEO Steve Francis said: “SIG’s performance in 2022 demonstrated the resilience, flexibility and diversity of its pan-European business. 

“Thanks to strong employee and customer engagement, the Group has continued to drive strong profit growth, even as market conditions became increasingly challenging as the year progressed.  

“SIG now has strong foundations for the future, and the Group remains well-positioned to benefit from the need for governments and end-customers to increase the sustainability and energy efficiency of buildings over time.

 

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