Shares in SIG (LON:SHI) dropped this morning after the group said that recent macroeconomic data and construction sector forecasts suggest that markets will remain challenging this year.
The construction products supplier added that the “uneven demand patterns” seen in the first half will continue throughout the year, while trading in the London region is expected to be disrupted by the upcoming Olympics.
Apart from the macroeconomic uncertainty, trading in the year to date has been impacted by cold weather in Europe and the recent wet weather in the UK. Still, sales for the first half of the year were flat against “very strong” prior year comparatives.
“SIG indicated at the start of the year that it expected construction activity in its markets to decline slightly in 2012, and trading in the first half substantiated this view,” the group said in a stock exchange statement this morning.
“Against this background, SIG remains focused on outperforming its markets, on cash and working capital discipline, and improving efficiency so as to manage what appears to be a slight increase in downside risks.”
SIG slumped 4.5 percent to 91.5 pence by 11:15, valuing the group at £540.6 million.