Pre-tax profits at insulation and roofing materials group SIG fell by 73.4% to £33.1m on sales which were 24% ahead at £3bn.
The company has now announced a placing and open offer and firm placing to raise around £325m. This will create a more appropriate capital structure and provide financial flexibility in the current environment. It will also allow the Group to capitalise on the long-term growth drivers in its end markets, the company said.
In the UK and Ireland, total sales increased by 9.6% to £1,bn, although like-for-like sales were down by 2.2%. underlying operating profit decreased by £10.1m (8.4%) to £111.2m and the underlying operating profit margin was 1.3% lower at 6.7% (2007: 8.0%);
During the year, the group added 49 trading sites, both organically and by acquisition, with 77 closures, taking the total at December 31 2008 to 433.
Les Tench, SIG chairman, said: “2008 was a challenging year for UK based construction companies, as macro economic conditions took an increasing toll on building and construction activity. Against this background, helped by exposure to a broad range of market sectors and geographies, SIG delivered record sales and a solid underlying profit performance.
“I am confident that the Group will strengthen its market leading position in the period ahead.”