ClickAJob News

Insulation and roofing company SIG has reported record results as homes and businesses seek to reduce their energy bills.

Pre-tax profit increased 29.5 per cent to £140.1 million, on sales growth of 32 per cent, to £2.45 billion.

SIG said insulation and related products is the group's largest product sector and demand is expected to continue to increase at a faster rate than overall construction activity in the UK, Ireland and mainland Europe.

Driving factors include a concern for the environment, rising energy costs, new legislation seeking to limit energy consumption, new building regulations, and grant schemes to improve energy efficiency in existing residential properties.

Insulation sales in the UK and Ireland increased by 12.9 per cent in total over the year as demand increased, partly driven by the new higher thermal performance standards required for new buildings in the UK.

Chairman Les Tench said: "The group's sales are more heavily weighted towards non-residential construction, both in the UK and Ireland and in mainland Europe, and it is believed that the substantial pipeline of work in progress of both public and privately funded construction programmes will continue to provide the group with attractive opportunities in its four main product sectors."

The company has increased its dividend by 30.2 per cent to 26.7p to reflect a confident outlook, the company said.

SIG spent £323 million on a string of 27 acquisitions in 2007, which helped boost profits by £217 million over the year.

The company is set to continue its buying spree in 2008, and has so far bought eight companies.