Q2 2026 SIG PLC Earnings Call

August 4, 2026

Speaker #1: Welcome to Zoom. Enter your meeting ID followed by pound. Enter your participant ID. You have joined the meeting as an attendee and will be muted throughout the meeting.

Operator: Welcome to Zoom. Enter your meeting ID followed by pound. Enter your participant ID. You have joined the meeting as an attendee and will be muted throughout the meeting. This meeting is being recorded.

Speaker #1: This meeting is being recorded.

Speaker #2: Hello and welcome to today's SIG PLC H1 2026 results. Automated subtitles are available, and you can turn this feature on or off within your Zoom app settings.

Operator 2: Hello, welcome to today's SIG plc H1 2026 results. Automated subtitles are available, and you can turn this feature on or off within your Zoom app settings. Please note, this is an automated service and transcription errors sometimes occur. If you would like to ask a question, you can do so by pressing the raised hand button on the Zoom app, and we will bring you into the meeting to ask your question verbally. Please be ready to unmute yourself if you wish to ask a question. For now, I'd like to hand over to Pim Vervaat.

Operator: Hello, welcome to today's SIG plc H1 2026 results. Automated subtitles are available, and you can turn this feature on or off within your Zoom app settings. Please note, this is an automated service and transcription errors sometimes occur. If you would like to ask a question, you can do so by pressing the raised hand button on the Zoom app, and we will bring you into the meeting to ask your question verbally. Please be ready to unmute yourself if you wish to ask a question. For now, I'd like to hand over to Pim Vervaat.

Speaker #2: Please note, this is an automated service, and transcription errors sometimes occur. If you would like to ask a question, you can do so by pressing the raised hand button on the Zoom app, and we will bring you into the meeting to ask your question verbally. So please be ready to unmute yourself if you wish to ask a question.

Speaker #2: But for now, I'd like to hand over to Pim Vavat.

Speaker #3: Good morning, and welcome to the H1 presentation of SIG. I'm joined here by my colleagues, Chris Lodge, the MD of our UK Roofing division, and Simon Kesselton, our CFO.

Pim Vervaat: Good morning, welcome to the H1 presentation of SIG. I'm joined here by my colleagues, Chris Lodge, the MD of our UK Roofing division, and Simon Kesterton, our CFO. Simon joined 1st of May. I'm delighted he's joined us. As some of you may be aware, I've worked with Simon for over six years at RPC Group plc, subsequently, Simon had a stint of six years at Care Group, during which time he was part of management teams which were able to create significant amount of shareholder value. The H1 results have been resilient, I would say, in light of difficult market circumstances. Q2 actually did show a like-for-like growth compared to last year versus a weather-impacted Q1.

Speaker #3: Simon joined on May 1st, and I'm delighted he's joined us. As some of you may be aware, I worked with Simon for over six years at RBC Group PLC, and subsequently, Simon had a stint of six years at Kier Group.

Speaker #3: During this time, he was part of management teams that were able to create a significant amount of shareholder value. In terms of an overview, the H1 results have been resilient.

Speaker #3: I would say, in light of difficult market circumstances, Q2 actually did show a like-for-like growth compared to last year, versus a weather-impacted Q1.

Speaker #3: Pleased to report that the panelists' business has returned to profitability, and indeed, further cost savings across the group have been realized. We are maintaining good liquidity.

Pim Vervaat: Pleased to report that the Benelux business has returned to profitability, indeed, further cost savings across the group have been realized, we are maintaining good liquidity. Beginning of this year, we launched the Vision 2030 strategy, against the backdrop of subdued markets for the foreseeable future, we have identified more opportunities going forward. We accelerate actions but also extended our management actions with the team now in place. Numbers-wise, we are targeting a GBP 50 million improvement in operating profit, run rate, admittedly, by mid-2028. We're aiming to reduce leverage, to improve leverage, I would say, to generate at least GBP 100 million of cash by the end of 2027. Our longer-term target, as we announced at Vision 2030, remains a 3% to 5% operating margins through the cycle whilst being cash generative.

Speaker #3: At the beginning of this year, we launched the Vision 2030 strategy. However, against the backdrop of subdued markets for the foreseeable future, we have identified more opportunities going forward.

Speaker #3: So we've accelerated actions, but also extended our management actions, with the team now in place. Numbers-wise, we are targeting a £50 million improvement in operating profit run rate, admittedly, by mid-2028.

Speaker #3: We're aiming to reduce leverage—to improve leverage, I would say—and to generate at least £100 million of cash by the end of 2027. Our longer-term target, as we announced at Vision 2030, remains a 3% to 5% operating margin through the cycle, whilst being cash generative.

Speaker #3: We have a net debt to EBITDA target of less than 3x, and we are focusing more than perhaps we did in the past on the latest technology—AI in particular—to enhance our key processes, which are in sales, supply chain management, and procurement.

Pim Vervaat: We have a net debt to EBITDA target of less than three times. We are focusing more than perhaps we did do in the past on latest technology, AI in particular, to enhance our key processes, which are in sales, supply chain management, and procurement. Before we move further on the value creation plan, we first go back to what's happened in the H1. Handing over to Simon on that one.

Speaker #3: Before we move further on the value creation plan, we'll first go back over what's happened in the half year. I'll hand over to Simon on that one.

Speaker #4: Many thanks, Pim, for your introduction. Good morning to everyone. It's good to meet many of you in person this morning. Having joined the group in May, I've been encouraged by the SIG culture, our people, and the market positions we occupy. This gives me great confidence that the significant self-help opportunities available to improve profitability and cash generation can be delivered.

Simon Kesterton: Many thanks, Pim, for your introduction. Good morning to everyone. It's good to meet many of you in person this morning. Having joined the group in May, I have been encouraged by the SIG culture, our people, the market positions we occupy. This gives me great confidence that the significant self-help opportunities available to improve profitability and cash generation can be delivered. Moving on now into the results, slide seven. This slide sets out our high-level results. Despite difficult end markets, as Pim mentioned earlier, and a weather-affected Q1, the group delivered a resilient H1. Trading improved throughout the period, returning to growth in Q2, whilst our management actions delivered GBP 10 million of benefits. We maintained strong liquidity.

Speaker #4: So moving on now to the results, slide 7. This slide sets out our high-level results. Despite difficult end markets, as Pim mentioned earlier, and a weather-affected first quarter, the Group delivered a resilient first half.

Speaker #4: Trading improved throughout the period, returning to growth in Q2, while our management actions delivered £10 million of benefits, and we maintained strong liquidity. Revenue in the period is lower than HY25 and reflects the weak demand across our end markets, made worse by the poor weather in the first quarter of the period.

Simon Kesterton: Revenue in the period is lower than HY25 and reflects the weak demand across our end markets, made worse by the poor weather in the Q1 of the period. This resulted in like-for-like sales declining 1.5%. Lower volume in Q1 resulted in underlying operating profit declining GBP 5 million to GBP 10.5 million, and margins falling 40 basis points to 0.8% due to a competitive market chasing low demand. The free cash outflow of GBP 16 million reflects a normal working capital seasonality. However, the opportunity to build stock levels ahead of price increases and higher prices during Q2 is partly offset by other working capital improvements. The group has robust liquidity, and long-term financing is provided through the EUR 300 million senior secured notes, which are due in October 2029.

Speaker #4: This resulted in like-for-like sales declining 1.5%. Lower volume in Q1 resulted in underlying operating profit declining by £5 million, to £10.5 million, and margins falling 40 basis points to 0.8%, due to a competitive market chasing low demand.

Speaker #4: The free cash outflow of £16 million reflects normal working capital seasonality. However, the opportunity to build stock levels ahead of price increases and higher prices during Q2 is partly offset by other working capital improvements.

Speaker #4: The group has robust liquidity, and long-term financing is provided through the £300 million senior secured notes, which are due in October 2029. Despite leverage being high at five times net debt to EBITDA, we have a clear plan to reduce it to below three times.

Simon Kesterton: Despite leverage being high at five times net debt to EBITDA, we have a clear plan to reduce it to below three times. Turning to slide eight, I will walk you through the group's revenue change. On the right-hand side, we see a strong month-on-month growth. Pricing impact was largely flat as the group was able to pass through cost inflation, an impressive result bearing in mind the competitive scenario low demand created. The key point is that the exit rate had recovered and was materially better than the start of the year. Moving on to explain how the like-for-like sales translated to the overall revenue change. We start on the left with the previous period revenue of just over GBP 1.3 billion. The next two bars show the like-for-like sales changes split between volume and price, which I have just explained, volume decline, partially mitigated by some pricing pass-through.

Speaker #4: Turning to slide 8, I'll walk you through the group's revenue change. On the right-hand side, we see a strong month-on-month growth. Pricing impact was largely flat, as the group was able to pass through cost inflation—an impressive result bearing in mind the competitive scenario and low demand created.

Speaker #4: The key point is that the exit rate had recovered and was materially better than at the start of the year. Moving on to explain how the like-for-like sales translated to the overall revenue change.

Speaker #4: We start on the left with the previous period revenue of just over £1.3 billion. The next two bars show the like-for-like sales changes, split between volume and price, which I've just explained, and volume decline.

Speaker #4: This was partially mitigated by some pricing pass-through. The impact of closed and exited business has resulted in a 0.7% decline in revenue in the period. As a reminder, in 2025 we closed 14 sites—six in each of the UK and France, and one site each in the Germany and Benelux divisions.

Simon Kesterton: The impact of closed and exited business has resulted in a 0.7% decline in revenue in the period. As a reminder, in 2025, we closed 14 sites, six in each of the UK and France, and one site each in Germany and the Benelux divisions. We closed a further net one site in H1 2026. Across the geographies we serve, there were fewer working days in H1, and this, combined with translation gains, results in a revenue growth of 1.3%. This resulted in revenue of just below GBP 1.3 billion during the period, a solid performance considering January and February revenue. Moving now to the underlying operating profit bridge. We start on the left with the previous period's underlying operating profit, GBP 15 million.

Speaker #4: We closed a further net one site in the half-year 2026. Across the geographies we serve, there were fewer working days in the first half of the year, and this, combined with translation gains, results in revenue growth of 1.3%.

Speaker #4: This resulted in revenue of just below £1.3 billion during the period, a solid performance considering January and February revenue. Moving now to the underlying operating profit bridge.

Speaker #4: We start on the left with the previous period's underlying operating profit, £15 million. The volume declines seen especially in the first quarter result in loss margins of £6 million—£9 million negative in the first two months of the year, and £3 million positive during the following four months.

Simon Kesterton: The volume decline seen, especially in Q1, result in lost margins of GBP 6 million, GBP -9 million in the first two months of the year, and GBP +3 million during the following four months. Pricing growth contributed GBP 2 million. Closures mentioned on the previous slide, alongside the impact of other gross margin impacts, has reduced margins by a further GBP 3 million. Overhead cost inflation was around 2% or GBP 6 million during the period. We delivered GBP 10 million of management actions in the period. That more than offset the GBP 6 million of inflationary headwinds and went some way to mitigating the volume impact from January and February. Of this, around GBP 3 million related to restructuring and branch closure projects, and a further GBP 3 million came from increased focus on procurement across the Group.

Speaker #4: Pricing growth contributed £2 million. Closures mentioned on the previous slide, alongside the impact of other gross margin impacts, have reduced margins by a further £3 million.

Speaker #4: Overhead cost inflation was around 2%, or £6 million, during the period. We delivered £10 million of management actions in the period, which more than offset the £6 million of inflationary headwinds and went some way to mitigating the volume impact from January and February.

Speaker #4: Of this, around £3 million related to restructuring and branch closure projects, and a further £3 million came from increased focus on procurement across the group.

Speaker #4: The balance came from a range of overhead and property actions, which we expect to accelerate given the continued absence of a market recovery that Pim touched on earlier.

Simon Kesterton: The balance came from a range of overhead and property actions, which we expect to accelerate given the continued absence of a market recovery that Pim touched on earlier. The overall result is an underlying operating profit of GBP 11 million. A good result considering the first two months of the year and the continuing weak market conditions, materially contributed to by our self-help initiatives. Now let's turn to our free cash flow. We did have underlying EBITDA of GBP 51 million during the period. We have paid GBP 36 million in lease payments, and CapEx in the period amounted to GBP 6 million. There was an GBP 8 million working capital inflow, a great performance despite investing in stock ahead of price increases. This reflects the stock build ahead of a price increase and the impact of higher prices during Q4, partly offset by receivables and other working capital improvements.

Speaker #4: The overall result is an underlying operating profit of £11 million—a good result considering the first two months of the year and the continuing weak market conditions.

Speaker #4: Materially contributed to by our self-help initiatives. Now, let's turn to our free cash flow. We delivered underlying EBITDA of £51 million during the period.

Speaker #4: We have paid £36 million in lease payments, and CapEx in the period amounted to £6 million. There was an £8 million working capital inflow—a great performance, despite investing in stock ahead of price increases.

Speaker #4: This reflects the stock build ahead of a price increase, and the impacts of higher prices during the last quarter, partly offset by receivables and other working capital improvements.

Simon Kesterton: This reflects the stock build ahead of a price increase and the impact of higher prices during Q4, partly offset by receivables and other working capital improvements. Branch closures and other restructuring activities resulted in a GBP 6 million payment in the period. The Group generated GBP 11 million of operating cash in the period at 104% conversion of operating profit. The interest in financing payments were GBP 26 million in the period, and this results in the free cash outflow of GBP 16 million.

Speaker #4: Branch closures and other restructuring activities resulted in a £6 million payment in the period. The Group generated £11 million of operating cash in the period, a 104% conversion of operating profit. The interest and financing payments were £26 million in the period, and this resulted in a free cash outflow of £16 million.

Simon Kesterton: Branch closures and other restructuring activities resulted in a GBP 6 million payment in the period. The Group generated GBP 11 million of operating cash in the period at 104% conversion of operating profit. The interest in financing payments were GBP 26 million in the period, and this results in the free cash outflow of GBP 16 million. This slide sets out the long-term funding arrangements the Group currently has in place. The long-term financing of the Group is provided through €300 million senior secured notes, which are due in October 2029. This, combined with the €90 million revolving credit facility, which runs to April 2029, gives us significant long-term liquidity. The RCF was undrawn, and combined with GBP 64 million of cash at the period end, gave us a robust liquidity of GBP 154 million. The only facilities in the next three years due are GBP 13.5 million of fixed rate secure notes.

Speaker #4: This slide sets out the long-term funding arrangements the Group currently has in place. The long-term financing of the Group is provided through £300 million senior secured notes, which are due in October 2029.

Simon Kesterton: This slide sets out the long-term funding arrangements the Group currently has in place. The long-term financing of the Group is provided through €300 million senior secured notes, which are due in October 2029. This, combined with the €90 million revolving credit facility, which runs to April 2029, gives us significant long-term liquidity. The RCF was undrawn, and combined with GBP 64 million of cash at the period end, gave us a robust liquidity of GBP 154 million. The only facilities in the next three years due are GBP 13.5 million of fixed rate secure notes.

Speaker #4: And this, combined with the £90 million revolving credit facility, which runs to April 2029, gives us significant long-term liquidity. The RCF was undrawn and, combined with £64 million of cash at the period end, gave us a robust liquidity of £154 million.

Speaker #4: The only facilities due in the next three years are £13.5 million of fixed-rate secured notes. £322 million of the group's total net debt of £532 million are IFRS 16 capitalized leases related to our operating assets.

Simon Kesterton: GBP 322 million of the Group's total net debt of GBP 532 million are IFRS 16 capitalized leases related to our operating assets, resulting leverage of 5x EBITDA. As I mentioned earlier, whilst leverage remains high, we have substantial liquidity, no near-term financing issues, and a clearly defined plan, which I'll walk through later, to reduce leverage to below 3x net debt to EBITDA. Now I'll hand back to Pim for the business review.

Speaker #4: Resulting leverage of 5 times EBITDA. As I mentioned earlier, whilst leverage remains high, we have substantial liquidity, no near-term financing issues, and a clearly defined plan—which I'll walk through later—to reduce leverage to below 3 times net debt to EBITDA.

Speaker #4: And now I'll hand back to Pim for the business review.

Speaker #2: Yep. Thanks, Simon. So here you see a slide with an overview of the various businesses. A couple of remarks on this slide: the presentation is following the management structure, so there hasn't been some streamlining in the organisation.

Pim Vervaat: Thanks, Simon. Here you see a slide with an overview of the various businesses. A couple of remarks on this slide. The presentation is following the management structure, there has been some streamlining in the organization. You can see UK Interiors has been combined with Ireland. Second remark is no loss-making divisions anymore, given the fact that Benelux turned around into a profit. You can see that the main markets we have in France, Germany, and the UK are the most difficult ones. We do have some bright spots when you look at Ireland, Poland, and the Netherlands. I'll give some more background of the various divisions in the coming slides. Also, Chris is here, who will take in a bit more depth through the UK Roofing division.

Speaker #2: So you can see UK Interiors has been combined with Ireland. Second remark is no loss-making divisions anymore, given the fact that Benelux turned around into a profit.

Speaker #2: And you can see that the main markets we have in France, Germany, and the UK are the most difficult ones, but we do have some bright spots when you look at Ireland, Poland, and the Netherlands.

Speaker #2: I'll give some more background on the various divisions in the coming slides, and also Chris is here, who'll take you in a bit more depth through the UK Roofing division, which, as you can see on this slide, is actually our star performer—certainly this half year—with a £7.3 million operating profit and a like-for-like growth of 1.7%.

Pim Vervaat: As you can see on this slide, actually our star performer, certainly this H1, with a GBP 7.3 million operating profit, a like-for-like growth of 1.7%. France and Germany, two of our challenged markets in terms of overall market environment. In France, you see a drop in revenue, although that was compensated in Q2 partially. It remains challenging. The reduction in profitability has indeed reflected that challenging market, although we are taking further action. One of them has been the closure of our Lyon branch. Perhaps also to note, we're trying to balance the cost reduction with also continuing to progress our customer proposition. We have made good progress implementing AI tools, particularly in France.

Speaker #2: France and Germany, two of our challenged markets in terms of the overall market environment—in France, you see a drop in revenue, although that was partially compensated in Q2.

Speaker #2: It remains challenging. The reduction in profitability has indeed reflected that challenging market. Although we are taking further action, one of them has been the closure of our Lyon branch.

Speaker #2: Perhaps also to note, we're trying to balance the cost reduction with continuing to progress our customer proposition. We have made good progress implementing AI tools, particularly in France.

Speaker #2: We went live with something called La Bonne Réponse, which is a quoting tool we developed over six months with an AI startup, basically reducing the time for quotations from over six hours to 30 minutes.

Pim Vervaat: We went live with something called La Belle Response, which is a quoting tool which we developed over 6 months with an AI startup, basically reducing the time for quotations from six plus hours to 30 minutes. That's now in action, and it's also very much improved the quality of the quotations. Within the group, we are building an AI roadmap, which we are deploying centrally to make sure we learn from each other. Perhaps more than before, we are focusing on technology, helping improve our key processes, being sales, customer service, as well as dynamic pricing, supply chain management, and procurement. Germany, a significant drop at 5.5% in terms of the market. Compared to that drop, still a resilient performance in operating profit, as you can see, 0.7 reduction. Costs have been taken out and will be taken out.

Speaker #2: So that's now in action, and it's also very much improved the quality of the quotations. Within the group, we are building an AI roadmap, which we are deploying centrally to make sure we learn from each other.

Speaker #2: So, perhaps more than before, we are focusing on technology—helping improve our key processes, namely sales, customer service, as well as dynamic pricing, supply chain management, and procurement.

Speaker #2: Germany saw a significant drop—that's 5.5% in terms of the market. Compared to that drop, it's still a resilient performance in operating profit, as you can see.

Speaker #2: A 0.7 reduction—costs have been taken out and will be taken out. As we see it, the market there is very challenging, but we think we are doing better than most of our competitors.

Pim Vervaat: As we see it, actually the market there is very challenging, we think we are doing better than most of our competitors there. Clearly, we know the long-term incentive plan of the German government hasn't kicked in just yet, its effects. Hopefully in the not too distant future, we see some effects in the general market circumstances. Also here, we try to give the balance between cost and continuing to improve our customer proposition. Last year, we introduced the omni-channel digital project also in Germany. We can see some momentum gathering in Germany as well vis-à-vis our customer base. Some bright spots in the H1. SIG in Poland had the harshest winter since the last 20 years in Poland. That impacted sales quite dramatically in January and February, as you can imagine, on the construction sites.

Speaker #2: Clearly, we know the long-term incentive plan of the German government hasn't kicked in just yet—its effects, but hopefully in the not too distant future, we see some effects in the general market circumstances.

Speaker #2: Again, also here, we try to give the balance between cost and continuing to improve our customer proposition. So, last year we introduced the omnichannel digital project, also in Germany, so we can see some momentum gathering in Germany as well vis-à-vis our customer base.

Speaker #2: Some bright spots in the half-year: SIG in Poland had the harshest winter in the last 20 years, which impacted sales quite dramatically in January and February, as you can imagine, on the construction sites.

Speaker #2: Nonetheless, we've recovered subsequently, with growth of 4% year-on-year in the first half, continuing to gain market share. Part of the reason also is the digital omnichannel capabilities driving market share, and also in Poland, where we're some way down the line in terms of developing and starting to implement the AI roadmap.

Pim Vervaat: Nonetheless, we've recovered subsequently growth of 4% year-on-year in the H1, continuing to gain market share. A part of the reason also there is the digital omni-channel capabilities driving market share. Also in Poland, we are some way down the line in terms of developing and starting to implement the AI roadmap. Benelux, I already referred to that. Turned to profit this year from a loss last year. They have been in a reorganization for the better part of two years, they're now regaining their market position and retaking market share. In those numbers is still included the company called MPA, which is a heavily loss-making Belgian subsidiary, which we've announced closure in the H1 towards the back end of H1, which closure process will be concluded in H2. Clearly, we have a path going forward where Benelux should enhance its profitability.

Speaker #2: Benelux, I already referred to that, turned a profit turned to profit this year from a loss last year. They have been in a reorganisation for the better part of 2 years, and they're now regaining their market position and retaking market share.

Speaker #2: Those numbers still include the company called MPA, which is a heavily loss-making Belgian subsidiary. We've announced its closure towards the back end of H1, and the closure process will be concluded in H2.

Speaker #2: So clearly, we have a path going forward where Benelux should enhance its profitability. UK and Ireland Interiors, as I said, we changed the reporting line and simplified the organisational structures, so that's now in one.

Pim Vervaat: UK and Ireland Interiors, as I said, we changed the reporting line, simplified the organization structure, that's now in one. You can see, though, recovery in market share where you may recall that we lost some market share in the H2 of last year. That's now recovered, Ireland is improving its profitability. In the UK, particularly our insulation and dry lining business is having a tough time, as have our competitors. We remain profitable, but it's been very intensive competition volume-wise, housing new builds, I think my colleague Kevin mentioned the Southeast high-rise buildings market not being great, we're suffering from exactly that same impact. Further cost measures are under consideration.

Speaker #2: You can see, though, recovery in market share—where you may recall that we lost some market share in the second half of last year—that's now recovered. Ireland is improving its profitability, but in the UK, particularly, our insulation and dry lining business is having a tough time, as have our competitors.

Speaker #2: We remain profitable, but it's been very intense competition, volume-wise. You know, housing new builds—and I think my colleague Kevin mentioned the south-east high-rise buildings market not being great—and we're suffering from exactly that same impact.

Speaker #2: So, cost measures—further cost measures—are under consideration. The division is larger than that, so we also announced recently the restructuring of two smaller businesses, called Euroform and CMS Danskin. There was still a separate management structure called 'Performance Technology Business' that has also been dissolved.

Pim Vervaat: The division is larger than that, we also announced recently the restructuring of two smaller businesses called Euroform and CMS Danskin, and there was still a separate management structure called Performance Technology Group that also has been dissolved. There's further measures to come on that front. UK Roofing, as I said, our star performer is market leader in roofing, is continuing to take market share in difficult markets. Chris will talk about that. It also includes Building Solutions where we actually seen a significant growth in H1, 13% up, indeed it's improved its profitability. Having said that, I'll hand over to Chris to deep dive a little bit more in UK Roofing. Chris?

Speaker #2: So there's further measures to come on that front. UK roofing, as I said, our star performer and market leader in roofing, is continuing to take market share in difficult markets.

Speaker #2: Chris will talk about that. But it also includes Building Solutions, where we actually saw significant growth in H1—up 13%—and indeed, it's improved its profitability.

Speaker #2: But having said that, I'll hand over to Chris to deep dive a little bit more into UK roofing. Chris?

Speaker #3: Thank you, Pim. Good morning, everyone. Before I talk about performance, I'd like to start with what sits at the heart of SIG Roofing. Our purpose is simple: to be the home of roofing.

Chris Lodge: Thank you, Pim. Good morning, everyone. Before I talk about performance, I would like to start with what sits at the heart of SIG Roofing. Our purpose is simple, to be the home of roofing. For us, that means creating a place where customers, suppliers, and importantly, our colleagues, feel that they belong. We believe sustainable outperformance is built on the strength of that ecosystem. It starts with investing in our people, maintaining the highest standards of health and safety, and developing expertise and creating a culture that puts the customer first. The result is stronger engagement, stronger customer relationships, better service, and ultimately, market share gains. The home of roofing is more than a slogan. It is the foundation of our strategy and ultimately the reason why we continue to outperform the market.

Speaker #3: And for us, that means creating a place where customers, suppliers, and, importantly, our colleagues feel that they belong. We believe sustainable outperformance is built on the strength of that ecosystem.

Speaker #3: It starts with investing in our people, maintaining the highest standards of health and safety, developing expertise, and creating a culture that puts the customer first.

Speaker #3: The result is stronger engagement, stronger customer relationships, better service, and ultimately, market share gains. 'It's the home of roofing' is more than a slogan.

Speaker #3: It is the foundation of our strategy and ultimately the reason why we continue to outperform the market. So, with that in mind, let me briefly explain the scale and capabilities that sit behind that proposition.

Chris Lodge: With that in mind, let me briefly explain the scale and capabilities that sit behind that proposition. We are the number one specialist roofing merchant in the UK, operating out of 108 locations and employing 920 colleagues. Our focus is entirely on the specialist trade of roofing, which differentiates us from general merchants. We provide specialist expertise through pitched, flat, industrial, and increasingly solar roofing solutions. Alongside the SIG Roofing core business, we have complementary specialist capability through AccuRoof, SR Timber, and Flex-R. This enables us to support customers across specification, waterproofing, and timber solutions. This specialist positioning, combined with national scale, gives us a strong platform to regain and win share and support customers regardless of the market conditions. Onto 2026 to date. Firstly, the point is the markets remain challenging.

Speaker #3: We are the number one specialist roofing merchant in the UK, operating out of 108 locations and employing 920 colleagues. Our focus is entirely on the specialist trade of roofing.

Speaker #3: This differentiates us from general merchants. We provide specialist expertise through pitched, flat, industrial, and increasingly solar roofing solutions. Alongside the SIG Roofing core business, we have complementary specialist capabilities through AcuRoof, SR Timber, and Flexar.

Speaker #3: This enables us to support customers across specification, waterproofing, and timber solutions. So, this specialist positioning, combined with national scale, gives us a strong platform to regain and win share, and support customers regardless of the market conditions.

Speaker #3: So, on to 2026 today. Firstly, the point is the markets remain challenging. Industry forecasts have market volumes in private new build and private RMI down 10% and 8%, respectively.

Chris Lodge: Industry forecasts have market volumes in private new build and private RMI down 10% and 8% respectively. Now, given that two-thirds of our exposure is in these markets, we are certainly not immune to these conditions. Against that backdrop, I am pleased with the resilience of our performance. Also, the inclement weather that we experienced in Q1, January, February, and now the weather extremes that we are seeing in June and July have impacted demand, and I'm pleased with performance and how we've come through that. We estimate we've outperformed the market by 4%. This continues a multi-year trend of share gains driven by our laser focus on our customer proposition, commercial discipline, and growth initiatives. Importantly, we balance growth and profitability. Despite ongoing cost inflation, our operating margin improved, and we also generated GBP 6 million of free cash flow, supported by strong working capital discipline. While the market remains subdued, the business continues to demonstrate resilience on sales, profit, and cash.

Speaker #3: Now, given that two-thirds of our exposure is in these markets, we are certainly not immune to these conditions. Against that backdrop, I am pleased with the resilience of our performance. Also, the inclement weather that we experienced in Q1, January and February, and now the weather extremes that we're seeing in June and July have impacted demand, and I'm pleased with performance and how we've come through that.

Speaker #3: And we estimate we've outperformed the market by 4%. This continues a multi-year trend of share gains, driven by our laser focus on our customer proposition, commercial discipline, and growth initiatives.

Chris Lodge: We estimate we've outperformed the market by 4%. This continues a multi-year trend of share gains driven by our laser focus on our customer proposition, commercial discipline, and growth initiatives. Importantly, we balance growth and profitability. Despite ongoing cost inflation, our operating margin improved, and we also generated GBP 6 million of free cash flow, supported by strong working capital discipline. While the market remains subdued, the business continues to demonstrate resilience on sales, profit, and cash.

Speaker #3: Importantly, we balanced growth and profitability. Despite ongoing cost inflation, our operating margin improved, and we also generated £6 million of free cash flow, supported by strong working capital discipline.

Speaker #3: So, while the market remains subdued, the business continues to demonstrate resilience in sales, profit, and cash. Looking ahead, we remain realistic about the market conditions.

Chris Lodge: Looking ahead, we remain realistic about the market conditions. We expect the roofing demand to remain challenging throughout 2026. We're not assuming any near-term recovery. However, our focus remains on the factors that we can control. First, continuing to invest in our people and our customer proposition. Second, supporting customers and accelerating targeted growth areas such as solar, where training and technical expertise are becoming increasingly important differentiators. Third, expanding customer proximity through both digital capability and selective network expansion. We believe increasing our local market coverage remains one of the most effective ways to drive growth above market levels.

Speaker #3: We expect the roofing demand to remain challenging throughout 2026, and I'm not assuming any near-term recovery. However, our focus remains on the factors that we can control.

Speaker #3: First, continuing to invest in our people and our customer proposition. Second, supporting customers and accelerating targeted growth areas such as solar, where training and technical expertise are becoming increasingly important differentiators.

Speaker #3: Third, expanding customer proximity through both digital capability and selective network expansion—we believe increasing our local market coverage remains one of the most effective ways to drive growth above market levels.

Speaker #3: And finally, we are progressing our AI roadmap, focused on practical applications like inquiry and pricing optimization, and inventory management that will simplify the front line, allowing us to provide enhanced customer service.

Chris Lodge: Finally, we are progressing our AI roadmap focused in practical applications like inquiry and pricing optimization and inventory management that will simplify the front line, allowing us to provide an enhanced customer service. Of course, beyond the current cycle, we remain very positive on the medium-term outlook. Structural housing undersupply and eventual recovery in RMI activity should support roofing demand greatly over time and enhance margins further. Thank you.

Speaker #3: And of course, beyond the current cycle, we remain very positive on the medium-term outlook. Structural housing undersupply and an eventual recovery in RMI activity should support roofing demand greatly over time and enhance margins further.

Speaker #3: Thank you.

Speaker #2: Thanks, Chris. So on to the strategy and outlook. And just as a reminder, Vision 2030, which was launched at the beginning of this year, has two legs: optimizing our operating leverage and optimizing the business portfolio.

Pim Vervaat: Thanks, Chris. On to the strategy and outlook. Just as a reminder, 2030 was launched, Vision 2030, beginning of this year, has two legs, optimizing our operating leverage and optimizing the business portfolio. We do not expect the markets to recover in the foreseeable future, our action plan is against that backdrop. Key actions there, you can see it on the slide. One is to simplify the business portfolio, also the property portfolio and indeed the branch network. We are simplifying the organization as well in terms of the organization structure, some of the things that you've already seen, UK specialist markets no longer there, PTG no longer there, consolidation of Ireland into UK Interiors. Reaffirming our operating model, again, we've stated at the beginning of this year, we anticipate procurement to have a benefit of at least 1% of our procurement spend.

Speaker #2: We do not expect the markets to recover in the foreseeable future, so our action plan is against that backdrop. Key actions are there—you can see them on the slide.

Speaker #2: One is to simplify the business portfolio, but also the property portfolio and, indeed, the branch network. We are simplifying the organization as well, in terms of the organizational structure.

Speaker #2: Some of the things that you've already seen: UK specialist markets no longer there, PGG no longer there, consolidation of Ireland into UK Interiors. Reaffirming our operating model—again, we've stated at the beginning of this year we anticipate procurement to have a benefit of at least 1% of our procurement spend.

Speaker #2: It is network-driven, so no big central department. It's really about revitalizing and sharing best practices, and indeed information. We are reviewing our logistics models, and we're also looking at how to more efficiently use our capital structure.

Pim Vervaat: It is network driven, no big central department. It's really revitalizing and sharing best practice and indeed information. We are reviewing our logistics models and we're also looking how to more efficiently use our capital structure. Simon is our expert in that. Mentioned a couple of times, we're embracing AI and enabling technologies. That's part of the GBP 50 million operating profit improvement target. Some of it is what I would call traditional. Some of it is really enhancing our processes, as I said, on sales, where everybody's looking to further implement dynamic pricing, customer service, Chris already mentioned it, supply chain management, procurement, visibility of data. That roadmap is in development for the group, and we will invest more going forward in order to indeed become a higher quality distribution platform.

Speaker #2: But Simon is our expert in that. As mentioned a couple of times, we're embracing AI and enabling technologies. We are in that spot of the £50 million operating profit improvement target.

Speaker #2: Some of it is what I would call traditional. Some of it is really enhancing our processes, as I said, on sales, where everybody is looking to further implement dynamic pricing, customer service—Chris already mentioned it—supply chain management, procurement, and visibility of data.

Speaker #2: So, that roadmap is in development for the group, and we will invest more going forward in order to indeed become a higher-quality distribution platform.

Speaker #2: So, our targets remain the same: 3 to 5% operating margin through the cycle, and to create a best-in-class distribution platform. However, the more short- to medium-term plan is, clearly, how do we get to the £50 million operating profit by mid-2028?

Pim Vervaat: Our target remains the same, 3% to 5% operating margin through the cycle and create a best-in-class distribution platform. The more short to medium-term plan is clearly how do we get to the GBP 50 million operating profit by mid 2028? How do we achieve cash generation of at least GBP 100 million by the end of next year? Indeed, the target leverage of less than 3x net debt to EBITDA. To that, I'll hand over to Simon to go through the next slide.

Speaker #2: How do we achieve cash generation of at least $100 million by the end of next year? And, indeed, the target leverage of less than three times net debt to EBITDA.

Speaker #2: And with that, I'll hand over to Simon to go through the next slide.

Speaker #1: Thanks, Bim. I'd like to explain how we intend to create value over the next few years. Importantly, this plan is not dependent on a market recovery, as PEM mentioned, in our end markets.

Simon Kesterton: Thanks, Pim. I'd like to explain how we intend to create value over the next few years. Importantly, this plan is not dependent on a market recovery, as Pim mentioned in our end markets. A market recovery would clearly provide additional upside, the majority of these opportunities are management controlled and can be delivered irrespective of market conditions. The program is focused on three financial objectives: improving profitability, generating cash, and reducing leverage. On profitability, we're targeting a GBP 50 million operating profit run rate improvement by mid-2028, as Pim mentioned earlier. This will be delivered through a combination of procurement savings, back office simplification, organizational efficiencies, footprint optimization, and over time, market share gains. Procurement alone represents a significant opportunity with a further of GBP 25 million of benefits targeted.

Speaker #1: A market recovery clearly would provide additional upside, but the majority of these opportunities are management controlled and can be delivered irrespective of market conditions.

Speaker #1: The program is focused on three financial objectives: improving profitability, generating cash, and reducing leverage. On profitability, we're targeting a £50 million operating profit run rate improvement by mid-2028, as PIM mentioned earlier.

Speaker #1: This will be delivered through a combination of procurement savings, back-office simplification, organizational efficiencies, footprint optimization, and, over time, market share gains. Procurement alone represents a significant opportunity.

Speaker #1: With a further £25 million of benefits targeted. Alongside this, we see substantial opportunities to improve cash generation through tighter working capital management, optimization of stock and receivables, selective asset disposals, and further operational efficiencies.

Simon Kesterton: Alongside this, we see substantial opportunities to improve cash generation through tighter working capital management, optimization of stock and receivables, selective asset disposals, and further operational efficiencies. We are targeting at least GBP 100 million of cash generation by the end of 2027. Technology and AI, as Pim explained earlier, will act as accelerators across many of these initiatives. Our focus is practical, improving pricing decisions, supporting procurement, optimizing inventory space and distribution costs, and simplifying support functions to enhance productivity across the group. Importantly, these opportunities are not theoretical. The actions already taken in H1 provide evidence of the potential. We delivered GBP 10 million of management actions in H1, including procurement savings, restructuring initiatives, and organizational improvements, whilst also significantly reducing working capital as a percentage of sales.

Speaker #1: We are targeting at least $100 million of cash generation by the end of 2027. Technology and AI, as PIM explained earlier, will act as accelerators across many of these initiatives.

Speaker #1: Our focus is practical: improving pricing decisions, supporting procurement, optimizing inventory, space, and distribution costs, and simplifying support functions to enhance productivity across the group.

Speaker #1: Importantly, these opportunities are not theoretical. The actions already taken in the first half provide evidence of the potential. We delivered £10 million of management actions in H1, including procurement savings, restructuring initiatives, and organizational improvements, whilst also significantly reducing working capital as a percentage of sales.

Speaker #1: Taken together, we believe these initiatives provide a clear path to a significantly more profitable, more cash-generative, and lower-leveraged SIG. As we execute the plan, our target is to reduce leverage to below 3x EBITDA, while building a higher-quality specialist distribution platform supported by technology, including AI, capable of delivering sustainable operating margins of 3% to 5% through the cycle.

Simon Kesterton: Taken together, we believe these initiatives provide a clear path to a significantly more profitable, more cash generative, and lower leveraged SIG. As we execute the plan, our target is to reduce leverage to below 3x EBITDA while building a higher quality specialist distribution platform supported by technology, including AI, capable of delivering sustainable operating margins of 3% to 5% through the cycle. I'll now hand back to Pim for the outlook and takeaways.

Speaker #1: On our end, back to PIM for the outlook and takeaways.

Speaker #2: Thanks, Simon. So, in terms of the outlook for the second half, as said before, main markets are expected to remain subdued in the second half.

Pim Vervaat: Thanks, Simon. In terms of the outlook for H2, as said before, main markets are expected to remain subdued in H2. The full year operating profit is expected to be around GBP 25 million, as we highlighted 2 weeks ago. We aim to reduce the net debt in H2, expect to maintain healthy levels of liquidity going forward, as we alluded to, we are really accelerating our value creation plan. To conclude, what are the investment takeaways? Strong markets, what we shouldn't forget, are structural growth markets. We are in a downturn of the cycle, which is longer than anybody apparently ever experienced before. Those are structural growth markets, we do have strong market position. You heard about our extension and an acceleration of our self-help.

Speaker #2: The full-year operating profit is expected to be around £25 million, as we highlighted two weeks ago. We aim to reduce the net debt in H2, expect to maintain healthy levels of liquidity going forward, and, as we alluded to, we are really accelerating our value creation plan.

Speaker #2: So to conclude, what are the investment takeaways? We have strong markets in what we shouldn't forget are structural growth markets. We are in a downturn of the cycle, which is longer than anybody apparently has ever experienced before, but those are structural growth markets, and we do have a strong market position.

Speaker #2: You've heard about our extension and acceleration of our self-help, so those targets you've already seen. We aim to reshape SIG into a higher-quality distribution platform going forward.

Pim Vervaat: Those targets you've already seen, we aim to reshape SIG to a higher quality distribution platform going forward. With that, I think we're now over to Q&A. Let's start in the room with Q&A. We got our lady with the mic.

Speaker #2: With that, I think we're now over to Q&A. Let's start in the room—with Q&A. We've got our lady with the mic.

Speaker #3: Thanks. I'm Ainsley, and I'm from Investa. Just two for me, actually. Just to clarify the £50 million run rate in profit improvement—the way we should think about that, is that if we assume the market just stays as it is now, then the kind of base is £25 million for this year, I think consensus. So, it's £50 million on top of that. And then, I just wondered how back-end loaded that is?

Ainsley Hammond: Thanks. Ainsley Hammond from Investec. Just two from me, actually. Just to clarify the GBP 50 million run rate and profit improvement, the way we should think about that, is that if we assume the market just stays as it is now, then the kind of base is GBP 25 million for this year, I think consensus, it's GBP 50 million on top of that. Just wondered how back-end loaded that is. Is it a smooth kind of development to FY28? First question.

Aynsley Lammin: Thanks. Ainsley Hammond from Investec. Just two from me, actually. Just to clarify the GBP 50 million run rate and profit improvement, the way we should think about that, is that if we assume the market just stays as it is now, then the kind of base is GBP 25 million for this year, I think consensus, it's GBP 50 million on top of that. Just wondered how back-end loaded that is. Is it a smooth kind of development to FY28? First question.

Speaker #3: Is it a smooth kind of development to FY28? First question.

Speaker #1: Yeah, you're absolutely right, Ainsley. I mean, if you think about it, the first priority is to realize the capital, which you're going to invest in really improving the business performance.

Simon Kesterton: You're absolutely right, Ainsley. You think about it, the first priority is to realize the capital which you're going to invest in really improving the business performance. You just think about it developing towards a full run rate of that GBP 50 million by the H2 2028. Your full run rate through 2029, and you'll be, I would imagine, quite close to a full run rate through 2028 as well, won't you?

Speaker #1: So you just think about it developing towards a full run rate of that $50 million by the second half of 2028. So your full run rate through 2029, and you'll be, I would imagine, quite close to a full run rate through 2028 as well, won't you?

Speaker #3: Great. And then, maybe if you could give an update on the kind of inflation you're seeing, both on COGS and OPEX, as you look into the second half.

Ainsley Hammond: Great. Just on, maybe if you could give an update on the kind of inflation you're seeing both on COGS and OpEx as you go into H2.

Aynsley Lammin: Great. Just on, maybe if you could give an update on the kind of inflation you're seeing both on COGS and OpEx as you go into H2.

Speaker #1: Yeah, so I touched on the inflation. It was $6 million in the first half on OPEX, effectively, but we see that modest inflation continuing on.

Simon Kesterton: Yeah. I touched on the inflation. It was GBP 6 million in the H1 on OpEx, effectively. We see that modest inflation continuing, we are not expecting that to drop off. We have seen a tremendous amount of pricing inflation through the H1 of the year, I think up to sort of 9%, we have successfully passed on, as you see.

Speaker #1: We're not expecting that to drop off. And then we've seen a tremendous amount of pricing inflation through the first half of the year. I think up to sort of 9%, but we've successfully passed on, as you've seen.

Alastair Stewart: Alastair Stewart from Progressive Equity Research. A couple of questions. One actually continuing from Ainsley's much more short term, looking to the H2. You are looking for a delta in H2 versus H1 operating profit of about GBP 5 million. Bearing in mind your comments on the underlying market, is that really in just the removal of the 2 months of bad weather in the H1? You have nodded.

Speaker #3: Alistair Stewart from Progressive Equity Research. A couple of questions. One, actually continuing from Ainsley's, a much more short-term one, looking to the second half. You're looking for a delta in second half versus first half operating profit of about £5 million.

Speaker #3: Bearing in mind your comments on the underlying market, is that really just the removal of the two months of bad weather in the first half?

Speaker #3: That's you've nodded to us.

Speaker #1: Yeah, yeah, I mean, the removal of the two months of bad weather is £6 million in itself. So I think, yeah, that's effectively what we're saying.

Simon Kesterton: Yeah. I mean, the removal of the 2 months of bad weather is GBP 6 million in itself.

Alastair Stewart: Yeah.

Simon Kesterton: I think, yeah, that is effectively what I am saying.

Alastair Stewart: The second question, in terms of insulation, the mood music's changed from keeping heat in to keeping heat out. Are you planning any innovations, new products, systems on the back of that? Not unrelated, in your continental markets, sadly, France in particular, do you see any retro work on the back of the horrible fires they've had?

Speaker #3: And the second question: in terms of insulation, the mood music's changed from keeping heat in to keeping heat out. Are you planning any innovations?

Speaker #3: New products? Systems on the back of that? And, not unrelated, in your continental markets—sadly, France in particular—do you see any retro work on the back of the horrible fires they've had?

Speaker #2: No, that's where we stand today. I think, as a conservative market, insulation continues to do exactly that. So, I mean, in terms of weather-related changes, it might not be on insulation.

Pim Vervaat: Not as we speak today. I think as a conservative market, insulation continues to do exactly that. I mean, in terms of weather-related changes, might not be on insulation. I think, Chris, you can talk a little bit about our solar activities in the UK. Perhaps now is the time, not to do with insulation, but

Speaker #2: I think, Chris, you can talk a little bit about our solar activities in the UK—perhaps now is the time. Not to do with insulation, but...

Speaker #1: Yeah, I mean, we see solar as a very big growth area. We've seen it in our numbers this year. We've had very strong growth this year.

Chris Lodge: Yeah, we see solar as a very big growth area. We're seeing it in our numbers this year. We've had very strong growth this year. We had strong growth last year. We're invested in the specialist expertise that market is at the moment and traditionally through the electrical wholesale market. Actually, we're trying to give that value to roofers who have the specialism to work on a roof. That's where we see that we can add value into the market through training and expertise, and we are seeing some good wins through that. Of course, for us, that solar panel is taking up space that a tile used to be in. It's very important that strategically, we take a foothold in that market, and it's important for our customers.

Speaker #1: We had strong growth last year. We're investing in the specialist expertise that the market needs at the moment, and traditionally, through the electrical wholesale market.

Speaker #1: And actually, we're trying to give that value to roofers who have the specialism to work on a roof. So that's where we see that we can add value into the market through training and expertise.

Speaker #1: And we are seeing some good wins through that. And of course, for us, that solar panel is taking up space that a tile used to be in.

Speaker #1: So it's very important that, strategically, we take a foothold in that market. And it's important for our customers.

Speaker #4: Good morning, Adrian Kersey, Pamela Libram. I have one question on branches. On roofing, Chris, you’ve got 108 branches, and I think you mentioned something about selective openings going forward.

Adrian Kissse: Morning. Adrian Kissse, Panmure Gordon. One on branches. On roofing, Chris, you've got 108 branches. I think you mentioned about selective openings going forward. Is that in terms of on a gross or a net basis? Would you be closing branches and relocating? I'm just trying to think of, how quickly will that process take?

Adrian Kearsey: Morning. Adrian Kissse, Panmure Gordon. One on branches. On roofing, Chris, you've got 108 branches. I think you mentioned about selective openings going forward. Is that in terms of on a gross or a net basis? Would you be closing branches and relocating? I'm just trying to think of, how quickly will that process take?

Speaker #4: Is that in terms of growth or on a net basis? So, are you—would you be closing branches and relocating? I'm trying to think, and how quickly will that process take?

Speaker #1: Yes, we can answer those plans again through the second half of this year. We have a network design strategy that has identified locations where we would like the business to be.

Chris Lodge: Yes. We're going through those plans again through the H2 of this year. We have a network design and strategy that has identified locations where we would like the business to be. Of course, if you compare it to the general merchant sector, 108 locations actually isn't that many, and proximity to customers remains the number one demand that a customer would like. There is still a demand to have a branch or an outlet within 20-minute drive time of a customer. It still is a strong demand from the customer network. Although we have 108 locations, we cover around about 40% of the UK's population. We still see that as an opportunity, as well as looking at our current network and seeing where we can optimize on the space. In the main, we are in the conurbations that we need to be in.

Speaker #1: Of course, if you compare it to the general merchant sector, 108 locations actually isn't that many. And proximity to customers remains the number one demand that a customer would like.

Speaker #1: There is still a demand to have a branch or an outlet within a 20-minute drive time of a customer. So it still is a strong demand from the customer network.

Chris Lodge: Although we have 108 locations, we cover around about 40% of the UK's population. We still see that as an opportunity, as well as looking at our current network and seeing where we can optimize on the space. In the main, we are in the conurbations that we need to be in. It's just about being in the right place.

Speaker #1: Although we have 108 locations, we cover around 40% of the UK's population. So we still see that as an opportunity, as well as looking at our current network and seeing where we can optimize on the space. Because in the main, we are in the conurbations that we need to be in.

Speaker #1: It's just about being in the right place.

Chris Lodge: It's just about being in the right place.

Clyde Lewis: Clyde Lewis at Peel Hunt. I think I've got three, maybe four, apologies. Could you give us an idea of the scale of the losses at MPA? Presumably, they were included in the H1, and they'll be excluded from the business once you sell it or exit it. In July, any different trends in July versus the Q2? I suppose geographically, would you still expect Poland, Benelux, Ireland, UK Roofing to be positive territory and Germany, France, UK Interiors to still be in a negative situation for the H2 of the year? Finally, the last one was, I suppose, price inflation. Simon, you mentioned obviously big numbers in the H1. Can you maybe update us as to what you're hearing out of the manufacturers in terms of price rises that they're trying to push down the pipe?

Speaker #4: Clyde Lewis at Peelham. I think I've got three, maybe four questions, so apologies. Could you give us an idea of the scale of the losses at MPA?

Speaker #4: And presumably, they were included in the first half, and they'll be excluded from the business once you sell it or exit it. In July, were there any different trends compared to the second quarter?

Speaker #4: And then, I suppose geographically, would you still expect Poland, Benelux, Ireland, and UK roofing to be in positive territory, and Germany, France, and UK interiors to still be in a negative situation for the second half of the year?

Speaker #4: And finally, the last one was, I suppose, price inflation. Simon, you mentioned obviously big numbers in the first half. Can you maybe update us as to what you're hearing out of the manufacturers, in terms of the sort of price rises that they're trying to push down the pipe?

Speaker #2: So if I take the MPA and the geographic development, and you pick the other two as well.

Pim Vervaat: If I take the MPA and the geographic development, you pick the other two as a result?

Clyde Lewis: I'll pick the remaining three, I think I heard.

Simon Kesterton: I'll pick the remaining three, I think I heard.

Speaker #1: I'll pick the remaining three, I think I heard.

Pim Vervaat: Price inflation. MPA, they have been making losses and included in the H1 results, about a half a million EUR loss. You can see that's a significant improvement opportunity. Geographically, I see Ireland, Netherlands, Poland, continuing those markets to grow and we're outgrowing those markets. I don't see any change. I think the big markets, in Germany, as I said during my presentation, we're actually, even at a zero result, seem to be outperforming our competition. If you look at the indicators, there are some green shoots. Time will tell. What we have done in Germany is taking costs out and are likely to take more costs out, but at the same time have been investing. As I said, omni-channel is one. Have been investing in certain regions, specifically poaching some teams from the competition, and that takes some time to mature.

Speaker #2: And price inflation. Anyway, so MPA, yeah, they have been making losses and included in the half-year results is about a half a million euros loss.

Speaker #2: So, you can see that's a significant improvement opportunity. Geographically, I see Ireland, Netherlands, and Poland—continuing those markets to grow, and we're outgrowing those markets.

Speaker #2: So, I don't see any change. I think the big markets—Germany, as I said during my presentation—were actually even at a zero result, but seemed to be outperforming our competition.

Speaker #2: If you look at the indicators, there are some green shoots. Time will tell. What we have done in Germany is taking costs out, and are likely to take more costs out. But at the same time, we have been investing, as I said. On the channel is one—have been investing in certain regions, specifically approaching some teams from the competition.

Speaker #2: And that takes some time to mature. So, I think in Germany, we are good to, in the short and medium term, continue to take market share, take costs out, and that overall initiative in Germany has been well touted and eventually will come true.

Pim Vervaat: I think in Germany we are good to, on the short to medium term, to continue to take market share, take costs out, and that overall initiative in Germany, as has been well touted, eventually will come true in that sense. UK, you've heard from Chris, we don't expect any change, but he and his team have a very successful track record of continuing to take market share. Hotspot clearly is, and you've heard Travis Perkins say that, is in the insulation, the UK interiors market. I think that is where the battleground is. This is where we are still making a profit. This is where measures are being contemplated in order to. We don't anticipate any improvement, but you never know. The new government leader may actually start to unlock some of the new build houses, and we would benefit from that.

Speaker #2: In that sense, UK, you've heard from Chris, we don't expect any change, but he has a very successful he and his team have a very successful track record of continuing to take market share.

Speaker #2: Hotspots clearly are— and you've heard Travis Birkin say this— in insulation and the UK interiors market. I think that is where the battleground is.

Speaker #2: This is where we are still making a profit, and this is where measures are being contemplated. We don't anticipate any improvement, but you never know.

Speaker #2: The new government leader may actually start to unlock some of the new-build houses, and we would benefit from that. But at this moment in time, we're aiming to improve on the small profit we had in H1 by also internal measures.

Pim Vervaat: At this moment in time, we're aiming to improve on the small profit we had in H1 by also internal measures. You have price inflation.

Speaker #2: Then you've got price inflation.

Speaker #1: I think, yeah, so I think July was the first one. So in terms of how we see the market looking through the second half, it's still quite grim, isn't it?

Simon Kesterton: Jim, yeah. I think July was the first one. In terms of how we see the market looking through the H2, it's still quite grim, isn't it? I don't see anything that's indicating it will be significantly up or down. I expect July and August to be pretty similar to the prior year. In terms of then you talked about Poland, Benelux and Ireland. Yeah, we do expect those to continue to remain profitable for the foreseeable future. In Germany and France, still negative. I think the H2 last year is a slightly better comparator, but yeah, possibly still down, I think, during the H2 as well. Finally, was price inflation. Yeah. We've seen that flattening off. Of course, that's no indication.

Speaker #1: So I don't see anything that's indicating it will be significantly up or down. I expect July and August to be pretty similar to the prior year.

Speaker #1: In terms of — then you talked about Poland, Benelux, and Ireland. Yeah, we do expect those to continue to remain profitable for the foreseeable future.

Speaker #1: And then in Germany and France, still negative. I think the second half last year is a slightly better comparator, but yeah, possibly still down.

Speaker #1: I think during the second half as well. And finally, was price inflation. Yeah, so we've seen that flattening off. But of course, that's no indication of what we can be sure of, though, is we've done very well passing through those price increases, and we'll continue to do that.

Chris Lodge: What we can be sure of, though, is we've done very well passing through those price increases, and we'll continue to do that.

Speaker #4: I've got the mic, so I'll go. Ben Vara, obviously. First one: Is it fair to say that at the end of H2 '28, you target to be at the 3%, or between 3 and 5%?

Ben Barrett: I've got a mic, so I'll go. Ben Barrett, LBC. First one, is it fair to say that at the end of H2 2028, you target to be at the 3% or between 3% and 5%? At that point, could you give us an idea of the run rate operating cash flow, free cash flow, excluding the sort of one-off cash benefits you will unlock? On that point, can you also split the GBP 100 million into the different buckets if

Ben Varrow: I've got a mic, so I'll go. Ben Barrett, LBC. First one, is it fair to say that at the end of H2 2028, you target to be at the 3% or between 3% and 5%? At that point, could you give us an idea of the run rate operating cash flow, free cash flow, excluding the sort of one-off cash benefits you will unlock? On that point, can you also split the GBP 100 million into the different buckets if possible. Last point is just the costs to deliver that plan. Thanks.

Speaker #4: And at that point, could you give us an idea of the run-rate operating cash flow and free cash flow, excluding the sort of one-off cash benefits you will unlock?

Speaker #4: And then, on that point, can you also split the $100 million into the different buckets, if possible? And the last point is just the costs to deliver that plan.

Charlie Campbell: possible. Last point is just the costs to deliver that plan. Thanks.

Speaker #4: Thanks.

Speaker #2: May all look like Simon.

Pim Vervaat: They all look like Simon questions.

Simon Kesterton: They're all my questions, aren't they? I'm doing well here collecting questions. The 3% to 5%, I think, obviously it depends on mix changes and other events, but I don't see you getting to that by the end of 2028. It would be tight. You might be close to the bottom end of that by the end of 2028 because you haven't got the full run rate. Going through 2029, you might be getting quite close to the bottom end of that range. And it is a through the cycle number, so you would obviously expect to be at the bottom end of the range. The GBP 100 million buckets, it's an at least number. We don't give that because some of the actions will be interdependent. Obviously, if there's some disposals, you can't then improve the working capital of the business that you've disposed of.

Speaker #1: May all. My questions aren't—I'm doing well here, collecting questions. Yeah, so the 3 to 5 percent, I think obviously it depends on mix changes and other events, but I don't see you getting to that by the end of 2028.

Speaker #1: It’d be tight. It might be close. You might be close to the bottom end of that by the end of 2028 because you haven’t got the full run rate.

Speaker #1: Going through 2029, you might be getting quite close to the bottom end of that range. And it is a through-the-cycle number, so you'd obviously expect to be at the bottom end of the range.

Speaker #1: The £100 million buckets—it's an 'at least' number. We don't give that because some of the actions will be independent. Obviously, if there are some disposals, you can't then improve the working capital of the business that you've disposed of.

Speaker #1: But it's at least that number. And I think that even without disposals, you will be getting the majority of that $100 million anyway. And then, in terms of cost, it's a net number.

Simon Kesterton: It's an at least number, and I think even without disposals, you will be getting the majority of that GBP 100 million anyway. In terms of cost, it's a net number. That GBP 100 million includes the costs of getting there as well.

Speaker #1: So, that $100 million includes the costs of getting there as well.

Speaker #3: The other one was on the run rate. So if you do get—

Ben Barrett: The other one was on the run rate. If you do get-

Ben Varrow: The other one was on the run rate. If you do get-

Speaker #1: Oh, yes, you had the—yeah, I mean, the run rate I would assume is relatively flat. So, once we've improved the working capital, there's a law of diminishing returns, I guess.

Simon Kesterton: Oh, yes, you had.

Ben Barrett: The run rate also.

Ben Varrow: The run rate also.

Simon Kesterton: Yeah, I mean, the run rate, I would assume relatively flat. Once we've improved the working capital, there's a law of diminishing returns, I guess you will get there, you've got to look at the operating profit converting quite well. It should be converting depending on price changes up and down. There might be some seasonality there. The interest cost, which should be materially reduced.

Speaker #1: You'll get there, and then you've got to look at the operating profit converting quite well. So it should be converting depending on price changes, up and down.

Speaker #1: There might be some seasonality there, and then the interest cost—which should be materially reduced.

Speaker #2: And you never know, markets may have been recovering by the end of 2028. Let's wait and see.

Pim Vervaat: You never know, markets may have been recovering by the end of 2028.

Simon Kesterton: we should be definitely-

Pim Vervaat: Let's wait and see

Speaker #1: It should be positive free cash flow, that's for sure. If you add up all those numbers.

Simon Kesterton: it should be positive free cash flow, that's for sure, if you add up all those numbers.

Speaker #4: Hey, Pritchard here from Guys Capital. So just on the $100 million saving, it sounds like most of that's coming from working capital. Can you break down where that's coming from?

Prit Shah: Hey, Prit Shah from Guy's Capital. Just on the 100 million saving, it sounds like most of that's coming from working capital. Can you break down where that's coming from? Also you mentioned factoring, so how much is being used today, and how much do you expect to get from that?

[Analyst]: Hey, Prit Shah from Guy's Capital. Just on the 100 million saving, it sounds like most of that's coming from working capital. Can you break down where that's coming from? Also you mentioned factoring, so how much is being used today, and how much do you expect to get from that?

Speaker #4: And also, you mentioned factoring. So, how much is being used today, and how much do you expect to get from that?

Speaker #1: Yes, so we're using approximately £30 million of factoring. It suits the business relatively well as a source of financing because it's a positive working capital business.

Simon Kesterton: We are using approximately GBP 30 million of factoring. It does suit the business relatively well as a source of financing because it is a positive working capital business. As you grow, in theory, your sort of facilities would grow in line with factoring. That is definitely an opportunity for us as we move forward to contribute towards the GBP 100 million.

Speaker #1: So as you grow, in theory, your sort of facilities would grow in line with factoring. Yeah, and that is definitely an opportunity for us as we move forward to contribute towards the $100 million.

Speaker #4: Can you just break out the rest of the $100 million?

Prit Shah: Can you just break out the rest of the GBP 100 million?

[Analyst]: Can you just break out the rest of the GBP 100 million?

Speaker #1: Yeah, we haven't given a breakdown because there's quite a wide range, and there's quite a lot of independencies. So that's why we say it's an 'at least' number.

Simon Kesterton: We have not given a breakdown because there is quite a wide range and there is quite a lot of interdependencies, that is why we say it is an at least number.

Pim Vervaat: I can say the disposal proceeds should be up to GBP 40 million. In order to at least start to unveil a little bit of the breakdown.

Speaker #2: I can say that the disposal process should be up to £40 million, in order to at least start to unveil a little bit of the breakdown.

Speaker #5: Thank you. Kristen, you from Deutsche Bank. Three, the first one's very simple. On the £100 million saving, should we just think about net debt being £100 million lower, basically, at the end of next year?

Christian Sewing: Thank you. Christian Sewing from Deutsche Bank. Three. The first one's very simple. On the GBP 100 million savings, should we just think about net debt being GBP 100 million lower, basically at the end of next year? Is that the right way to think of it? Second of all, understanding the divestments, potentially up to GBP 40 million, is that accounted for in the profit growth as well? So that GBP 50 million extra is that, despite whatever divestments happen. The third one is just around capital structure, gross debt. As you rightly say, you've got some time. I assume the point is when you get closer is to reduce the gross debt and just generally options around that as you get towards 2029. Thank you.

Christen Hjorth: Thank you. Christian Sewing from Deutsche Bank. Three. The first one's very simple. On the GBP 100 million savings, should we just think about net debt being GBP 100 million lower, basically at the end of next year? Is that the right way to think of it? Second of all, understanding the divestments, potentially up to GBP 40 million, is that accounted for in the profit growth as well? So that GBP 50 million extra is that, despite whatever divestments happen. The third one is just around capital structure, gross debt. As you rightly say, you've got some time. I assume the point is when you get closer is to reduce the gross debt and just generally options around that as you get towards 2029. Thank you.

Speaker #5: Is that the right way to think of it? Second of all, regarding the divestments—potentially up to £40 million—is that accounted for in the profit growth as well?

Speaker #5: So that £50 million extra, is that after any potential divestments? And then the third one is just around capital structure—gross debt. As you rightly say, you've got some time.

Speaker #5: I assume the point when you get closer is to reduce the gross debt and just generally discuss options around that as you get towards 2029.

Speaker #5: Thank you.

Speaker #1: Yeah, so the £100 million reduced, I think that's a sensible way to look at it. It's an 'at least' number. Clearly, the disposals—some of that might impact earnings slightly—but I think even if we achieve all of the disposals that are non-core, it doesn't really change the impact that much.

Simon Kesterton: Yeah. The GBP 100 million reduced, I think that's a sensible way to look at it. It's an at least number. Clearly, the disposals, some of that might impact earnings slightly, but I think even if we achieve all of the disposals that are non-core, it doesn't really change the impact that much. You're still looking at business that's relatively the same size, the same shape, and the same leverage. In terms of the GBP 50 million, of course, they will be generating cash as well, which does contribute modestly to that GBP 100 million over those couple of years. Ongoing, you'll continue to receive that. I mean, the leverage will be materially reduced by the time you're refinancing towards the back end of 2028, probably.

Speaker #1: So you're still looking at a business that's relatively the same size, the same shape, and the same leverage. And then, in terms of the $50 million, of course, they'll be generating cash as well.

Speaker #1: Which does contribute modestly to that $100 million over those couple of years. And ongoing, you'll continue to receive that. So, I mean, the leverage will be materially reduced by the time you’re refinancing towards the back end of 2028, probably.

Christian Sewing: Just options around gross debt.

Speaker #3: And then just options around gross debt.

Christen Hjorth: Just options around gross debt.

Speaker #1: Options around gross debt. So, in terms of...

Simon Kesterton: Options around gross debt. In terms of?

Speaker #3: I suppose that would you look at.

Christian Sewing: I suppose.

Christen Hjorth: I suppose.

Speaker #1: In terms of the instrument, were you financing? Yeah, I mean, I think if the business is the current size and shape, that's too big an instrument.

Simon Kesterton: In terms of the instrument were you financing?

Christian Sewing: Yeah. Exactly that.

Christen Hjorth: Yeah. Exactly that.

Simon Kesterton: Yeah. I think if the business is this current size and shape, that's too big an instrument. You would be looking at a smaller instrument, I think, to refinance in 2028.

Speaker #1: So you would be looking at a smaller instrument, I think, to refinance in 2028.

Speaker #4: Yeah, Charlie Campbell. It's T4. Just one, actually, but it's, I guess, maybe quite broad. Just wondering what impact the Future Homes Standard has on the business in 2027, 2028.

Charlie Campbell: Charlie Campbell at Stifel. Just one, actually. It's maybe quite broad. I'm just wondering what impact Future Homes Standard has on the business 2027, 2028. I guess there's more insulation going into houses and more solar, some opportunities across the group. I'm just wondering if that's material.

Speaker #4: I guess there's more insulation going into houses, and more solar, so there are some opportunities across the group. Just wondering if that's material.

Speaker #2: I think we've got our expert here on the right-hand side. You know something about roofs in the UK and standards.

Pim Vervaat: I think we've got our expert here on the right-hand side. You know something about the roofs in the UK and the standards.

Speaker #4: Yeah, I hope so. I think that's pretty much all I can say on that. Now, look, the reason why we've been building up the capability to support our customers that want to get into this space is because of the future home standard and the direction that the company is going in.

Chris Lodge: Yeah, I hope so. I think that's pretty much all I can say on that. No. The reason why we've been building up the capability and to support our customers that want to get into this space is because of the Future Homes Standard direction that the company's going with. Obviously, net zero, Future Homes Standard takes that one step further in terms of what coverage is required. Equally, there's an offset. Where the tiles would have been before, that's now been replaced with solar. There's a downside to the tile market, upside into the solar. That's the reason why we're trying to lead as much as we can to support the customers who want to undertake those works for the new homes, to make sure that we're front and center in supporting them.

Speaker #4: Obviously, net zero. Future Home Standard takes that one step further in terms of what coverage is required. Equally, there's an offset, so where the tiles would have been before, that's now being replaced with solar.

Chris Lodge: Equally, there's an offset. Where the tiles would have been before, that's now been replaced with solar. There's a downside to the tile market, upside into the solar. That's the reason why we're trying to lead as much as we can to support the customers who want to undertake those works for the new homes, to make sure that we're front and center in supporting them.

Speaker #4: So there's a downside to the tile market upside into the solar, but that's the reason why we're trying to lead as much as we can to support the customers.

Speaker #4: Who want to undertake those works for the new homes, to make sure that we're front and center in supporting them. So it should be a good upside for us in solar, but equally a downside in the tile market.

Chris Lodge: Should be a good upside for us in solar. Equally a downside in the tile market.

Speaker #4: Presumably, you would have imagined that solar might be a higher margin than roof tiles. Is that the hope, the expectation?

Charlie Campbell: Presumably, you would have imagined that solar might be a higher margin than rooftops. Is that sort of the hope, the expectation?

Speaker #1: In the future.

Charlie Campbell: In the future.

Chris Lodge: In the future.

Speaker #4: Yeah.

Charlie Campbell: Yeah. Thank you.

Stephen Rawlinson: I'll stand up because I'm at the back. Stephen Rawlinson from Applied Value. A number of us in the room will remember ten years ago when the SIG revenue was GBP 2.8 billion, and we're still at that point, despite considerable inflation. What the real question is in and around whether you've been able to explore other ways to add value to your suppliers' products in order to get the margin much higher. At the moment, we've talked about cost savings. We've heard a little bit about AI, but to what extent have you been able to explore discussions with your suppliers of your materials to actually add greater value along the way to get up to that 3% to 5% other than what we're talking about the moment, which is actually, if you like, just greater volume to get throughput through a fixed overhead base.

Speaker #6: I'll stand up because I'm at the back. Stephen Rollinson from Applied Value. A number of us in the room will remember 10 years ago when the SIG revenue was £2.8 billion, and it's still at that point despite considerable inflation.

Speaker #6: But what the real question is, in and around whether you've been able to explore other ways to add value to your supplier's products in order to get the margin much higher.

Speaker #6: At the moment, we've talked about cost savings. We've heard a little bit about AI. But to what extent have you been able to explore discussions with your suppliers of your materials to actually add greater value along the way to get up to that three to five percent, other than what we're talking about at the moment—which is, if you like, just greater volume to get throughput through a fixed overhead base?

Speaker #6: So, is there something we could just mention there about what you've been doing? AI, presumably, is available to most of your competitors as well.

Stephen Rawlinson: Is there something we could just mention there about what you've been doing? AI presumably is available to most of your competitors as well, that isn't sort of bespoke. There's a little bit of value added been mentioned in regard to the roofing market in the UK, but if you could just talk us through that, Pim, since you've arrived, and Simon as well, as to what extent you've been able to explore those sorts of areas to add greater value.

Speaker #6: So that isn't, sort of, bespoke. There's a little bit of value-added been mentioned in regard to the roofing market in the UK, but if you could just talk us through that, PIM, since you've arrived, and Simon as well, as to what extent you've been able to explore those sorts of areas to add greater value.

Speaker #2: Well, we are talking to suppliers in terms of sustainable materials. Clearly, when you go to more sustainable products that we can use, indeed, for our wider customer base. I think I disagree with you on the fact that AI is available to everybody and therefore it's not going to be a distinctive competitive advantage.

Pim Vervaat: Well, we are talking to suppliers in terms of sustainable materials. Clearly, when you go to more sustainable products that we can use indeed for our wider customer base. I think I disagree with you on the fact that AI is available to everybody, and therefore it's not going to be a distinctive competitive advantage. Certainly, I mentioned Lambourn Response. That takes a six, nine months development with your key users to develop something which is our own proprietary system. Similarly, we are working across the group on dynamic pricing systems. AI, whilst when you're talking about the support functions, these are the general AI chatbot accounting, available to everybody, relatively standard.

Speaker #2: Certainly, I mentioned the Labour response. That takes a six- to nine-month development with your key users to develop something which is our own proprietary system.

Speaker #2: Similarly, we are working across the group on dynamic pricing systems and AI. When you're talking about the support functions, these include the general AR chatbot accounting.

Speaker #2: Yeah, available to everybody, relatively standard. But when you look at our core processes, be it in procurement as well as in dynamic pricing and customer service, we believe that, at this point in time, we haven't focused—at least not centrally—on that.

Pim Vervaat: When you look about our core processes, be it on procurement as well as on dynamic pricing and customer service, we believe at this point in time, we haven't focused, at least not centrally, on that. I do believe introducing technology in what is a conservative industry, low technology industry, ahead of the pack and allocating resources more than we have done in the past will give us, certainly for a significant period of time, an advantage in our key market. Yes, we're taking costs out. I think we've highlighted there are more costs to be taken out in areas which may not have been in focus previously. Together with our market position, we have been, certainly if you take the last three years, have been regaining market share for all the traditional stuff that we do.

Speaker #2: But I do believe introducing technology into what is a conservative, low-technology industry—being ahead of the pack and allocating resources more than we have done in the past—will certainly give us, for a significant period of time, an advantage in our key market.

Speaker #2: So yes, we're taking costs out. I think we've highlighted there are more costs to be taken out in areas which may not have been in focus previously.

Speaker #2: Together with our market position, we have been, certainly if you take the last three years, regaining market share for all the traditional stuff that we do.

Speaker #2: I mean, we have UK roofing as the traditional market share growth driver, which is something that people are helping to drive. So, I am a firm believer that with our market position in what is a structural growth market, streamlining our cost base, but also optimizing our customer service.

Pim Vervaat: I mean, we have UK Roofing is the traditional market share growth driver, which is something called people helping to drive that. I am a firm believer that with our market position in what is a structural growth market, streamlining our cost base, but also optimizing our customer service. I mean, we still have today many decision makers on a daily basis who take suboptimal pricing decision depending on whether they are in Germany or which part they are in the UK with no good information at hand. We know, as a consequence, where we get it right, you get an uplift in margin half a percent, 1%. You just translate that for the whole GBP 2.6 billion, it starts to become significant. Similarly, on procurement. We have a powerful supplier base.

Speaker #2: I mean, we still have many decision makers today who, on a daily basis, make optimal pricing decisions depending on where they are in Germany or which part of the UK they are in, with no good information at hand.

Speaker #2: And we know as a consequence, where we get it right, you get an uplift in margin—half a percent, one percent. You just translate that for the whole £2.6 billion, and it starts to become significant.

Speaker #2: Similarly, on procurement, we have a power supplier base. As you know, having full visibility and an aligned, network-driven procurement approach will be a sustainable advantage.

Pim Vervaat: As you know, having full visibility and aligned procurement, network-driven procurement will be a sustainable advantage. Some of our competitors may be able to do that, but as you know, this is a fragmented industry and not everybody will have the willingness, conservative industry, and/or the capability to do that. I would disagree with the statement AI is just something that everybody can do and everybody gets more proficient at the same time. I'm a luddite from origin, but I'm now a convert in AI. Don't pretend to understand all the details and the ins and outs. What I do understand, we have been doing some really good stuff in various part of SIG, and this is definitely going to be a key focus point going forward.

Speaker #2: Now, some of our competitors may be able to do that, but as you know, this is a fragmented industry. Not everybody will have the willingness—it's a conservative industry—and/or the capability to do that.

Speaker #2: So, I would disagree with the statement that AI is just something that everybody can do and that everybody gets more proficient at the same time. Actually, I'm a Luddite by origin, but I've now converted to AI.

Speaker #2: I don't pretend to understand all the details and the ins and outs, but I do understand we have been doing some really good stuff in various parts of SIG, and this is definitely going to be a key focus point going forward.

Speaker #2: Yes, there have been on the supplier side. Okay, can you give us the more sustainable products to help in that? And I think you said a bit on UK roofing, but I believe Chris is doing, with his team, a great job differentiating. I mean, the way UK roofing has really trained its contractors on solar panels and helping them move along the supply chain—that is actually support for continuing to gain market share.

Pim Vervaat: Yes, there have been on the supplier side, Okay, can you give us the more sustainable products to help in that? I think you say a bit on SIG Roofing, but I believe Chris is doing with his team a great job differentiating. I mean, the way SIG Roofing has really trained its contractors on solar panels and helping them move along the supply chain, that is actually support for continuing to gain market share. We also continue to do the way in a traditional way of operating. I think with the lower cost base, more streamlined, we don't have much resources, as you know. You know our current situation. What we will do, I mean, the net cash or the cash generation of at least GBP 100 million is after investing in resources to make ourselves better.

Speaker #2: So we also continue to operate in the traditional way. And I think, with the lower cost base and being more streamlined, we don't have much resources, as you know.

Speaker #2: You know our current situation. What we will do—I mean, the net cash or the cash generation of at least $100 million—is after investing in resources to make ourselves better.

Speaker #2: Equally, there are some traditional areas where we have a wide range of businesses across SIG. Some may not be exactly core; some may not have been really treasured and developed.

Pim Vervaat: Equally, there are some traditional areas where we have a wide range of businesses across SIG. Some may not be exactly core, some may not have been really treasured and developed. I see a lot of improvement opportunity going forward. AI-driven service model Sustainable materials from suppliers. In the end, this is a people business, and is what Simon said, I can only confirm. There's a reason we've been doing relatively well compared to competition in most instances, even though markets are bad, because I do believe that we have very good management teams across the piece. It's a bit traditional in the way we try to regain market share, but definitely aiming to get that 3% to 5% fixed. If you want to take a longer-term view, this industry will continue to consolidate. Has done, will do.

Speaker #2: So I see a lot of improvement opportunity going forward: AI-driven service models, sustainable materials from suppliers. In the end, this is a people business, and that's what Simon said.

Speaker #2: I can only infer there's a reason we've been doing relatively well compared to the competition in most instances, even though markets are bad, because I do believe that we have very good management teams across the piece.

Speaker #2: So, it's a bit traditional in the way we try to regain market share, but definitely aiming to get that 3% to 5% fixed. And if you want to take a longer-term view, this industry will continue to consolidate.

Speaker #2: Has done will do. What we're aiming to do with SIG is put it in a position where we are a key player with a proven track record and I know there's been a history, you say 10 years, I mean, I've looked at the history clearly and there've been many CEOs and there've been many chains off directions that have been many people say, oh, procurement, this logistics, that prove it the pudding's in the eating.

Pim Vervaat: What we're aiming to do with SIG is put it in a position where we are a key player with a proven track record. I know there's been a history, you say 10 years. I've looked at the history clearly, and there's been many CEOs, and there have been many change of directions. There have been many people say, Oh, procurement this, oh, logistics that. Proof of the pudding is in the eating. I understand the skepticism, but I do believe we have the team in place and the down-to-earth, sensible, pragmatic approach that I think we'll be able to deliver this plan. Once we're in this plan, and we are better than competition in terms of the way we operate in a consolidating market.

Speaker #2: So I understand the skepticism. But I do believe we have the team in place, and the down-to-earth, sensible, pragmatic approach that I think will be able to deliver this plan once we're in this plan, and we are better than the competition in terms of the way we operate in a consolidating market.

Speaker #2: Hey, we may be consolidated by other players because we're a desirable piece, or we may earn the right to do it properly next time.

Pim Vervaat: Hey, we may be consolidated by other players because we're a desirable piece, or we may earn the right to do it properly next time. This is not Vision 2030, this is Vision 2035. Let's first get to getting this business on a better footing. I think those are the questions for the room. I don't know if there's anybody online who wants to ask a question. I think we need to look to the back of the room. Nope. Thank you for coming and for the questions. Enjoy the rest of the day.

Speaker #2: But this is not Vision 2030. This is Vision 2035.

Speaker #1: Let's start by getting this business on a better footing.

Speaker #2: I think those are the questions for the room. I don't know if there's anybody online who wants to ask a question. I think we need to look to the back of the room.

Speaker #2: Nope. So with that, thank you for coming and for the questions. Enjoy the rest of the day.

Speaker #3: Thanks everyone.

[Company Representative] (SIG): Thanks, everyone.

Stephen Rawlinson: Thanks, everyone.

Speaker #1: Thank you.

Pim Vervaat: Thank you.

Operator: Goodbye

Browse all earnings call transcripts

Q2 2026 SIG PLC Earnings Call

Request TrialDemo

SIG

Earnings