Building materials supplier SIG Plc <SHI.L> warned on Monday that annual profit in its core businesses would be significantly lower, hit by a deteriorating construction market as a downturn in Britain and Germany deepened and fears of a recession loomed.
Contraction in manufacturing activity globally, including those key markets have taken a toll on the company. At home, the construction slump worsened in September with data showing the commercial and civil engineering sectors contracting at the fastest in around a decade ahead of Brexit.
“This deterioration in trading conditions has accelerated over recent weeks, and political and macro-economic uncertainty has continued to increase,” the company said.
The Sheffield-based company expects significantly lower underlying profitability in both its specialist distribution and roofing merchanting businesses, and said it was taking actions to address the continuing market weakness – without divulging specific details of those plans.
The company, which had repeatedly sounded warnings of a hit from Britain’s construction industry woes, also separately announced the disposal of its air handling division and building solutions business.