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SIG profit rises on cost cuts, shares up 2.4%

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SIG reported a 2025 profit lift that nudged its shares up 2.4% in early London trading. Like‑for‑like sales held steady at roughly £2.6 billion, but the group expects operating profit to hit about £32 million—around £7 million above last year—thanks to aggressive cost cuts. Restructuring and productivity drives cut operating expenses by an estimated £39 million, with £18 million coming from restructuring alone. CEO Pim Vervaat said the firm delivered a robust trading performance amid tough market conditions and remains well‑positioned in markets with long‑term growth drivers, especially through procurement.

Sales fell 1% year‑on‑year, partly due to currency swings, fewer working days and branch changes, while demand weakened in the U.K., Germany and Ireland. Pricing pressure kept the company from passing on modest input cost hikes. Free‑cash‑outflow is projected to narrow to about £12 million from £39 million in 2024, and year‑end liquidity sits at £171 million, supported by £81 million of cash and an undrawn £90 million revolving credit. Net debt, including leases, remains at roughly 4.7 times.