Shares in Sheffield-based FTSE 250 building products firm SIG (SHI) hit their lowest level since the pandemic this month, bringing year-to-date losses to almost 40%.

In its interim trading update the company revealed sales in May and June were below forecasts, having failed to recover from the downturn of the first four months of the year, and said it was ‘cautious’ in calling a second-half recovery.

As a result, it lowered its full-year operating profit forecast to between £20 million and £30 million against market expectations of £37 million to £43 million.

The firm blamed ‘prolonged’ weakness in the construction sector in the French and German markets for disappointing volume sales, as well as ‘softness’ in its UK interiors business.

Last month, SIG reiterated its lower full-year guidance but said hitting its targets would depend on a recovery in its European markets and its operational gearing – which means small changes in sales can translate into big moves in profits – while also noting prices had fallen partly as a consequence of lower inflation. 

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