Materials firm completed 拢165m equity raise over summer
Materials firm SIG said it expects to stay in the red in the second half of the year after the firm slumped to a 拢125m pre-tax loss in the first six months.
The firm, which over the summer shored up its finances with a 拢165m equity raise which included 拢60m from New York private equity firm Clayton, Dubilier & Rice, crashed to a 拢125.4m loss in the six months to June from a 拢2.2m profit last time.
Revenue was down from 拢1.1bn to 拢840m as the firm said sales had been hit by the impact of covid-19.
SIG, which earlier this year was forced to pull plans to sell its insulation panels business to Kingspan for 拢37.5m saying a regulatory investigation into the move had helped sink the deal, said losses in the second half would be at a lower rate. Last year, the firm fell to a 拢113m pre-tax loss.
The firm said furloughing 2,000 staff and other wage-saving measures had helped keep 拢8m of cash in the business in the period to May 2020 while a series of government deferrals on tax in the UK and Europe had helped it defer 拢15m of cash payments during the same period.
The majority of furloughed staff are now back at work, it added.
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