Full year results for year ended 31 December 2025

4 March 2026

 

Full year results for the year ended 31 December 2025

 

SIG plc ("SIG", "the Group" or "the Company") today announces its results for the full year ended 31 December 2025 ("FY25" or "the year").

	2025	2024
Underlying revenue	£2,591.0m	£2,611.8m
LFL1 sales	0%	(4)%
Gross margin	24.2%	24.5%
Underlying2 operating profit	£32.1m	£25.1m
Underlying operating margin	1.2%	1.0%
Underlying loss before tax	£(20.0)m	£(14.3)m
Underlying loss per share	(2.0)p	(1.7)p
Net debt	£518.2m	£497.3m
Statutory results	2025	2024
Revenue	£2,591.0m	£2,611.8m
Operating loss	£(9.4)m	£(3.8)m
Loss before tax	£(61.7)m	£(44.8)m
Total loss after tax	£(64.1)m	£(48.6)m
Basic loss per share	(5.5)p	(4.2)p

 

 

Key highlights

·    FY25 results reflect continued strong commercial execution and productivity gains against a challenging market backdrop, particularly in the latter part of the year

·    Group like-for-like¹ ("LFL") sales flat versus the prior year, with revenues of £2.59bn (2024: £2.61bn)

·    Underlying² operating profit of £32.1m, up 28% versus the prior year (2024: £25.1m) and in line with market expectations

·    Good progress on strategic actions, including those benefitting medium and longer term profitability:

o Group's operating companies continue to perform well relative to their markets

o Restructuring and productivity initiatives contributed to year over year underlying reduction in operating expenses of £39m, mitigating much of the near-term impact of lower volumes and operating cost inflation

o UK Interiors' performance transformed with a £9m year over year improvement in operating profit in its core Insulation and Drylining business

o Benelux delivered a £3.2m reduction in operating losses

·    Underlying loss before tax of £20.0m; statutory loss before tax of £61.7m, reflecting £41.7m of Other items, including £29.7m of non cash impairments and £9m of restructuring costs

·    Operating cash inflow³ of £43m and free cash outflow³ of £12m, reflecting strong progress on working capital initiatives

·    Robust liquidity of £171m at year-end, consisting of cash balances of £81m (2024: £87m) along with undrawn RCF of £90m

·    Year-end net debt of £518m (2024: £497m), including £323m (2024: £321m) of net lease liabilities; leverage unchanged at 4.7x

 

Commenting, Pim Vervaat, Chief Executive Officer, said:

"In 2025 the Group delivered a robust trading performance in continued difficult market conditions, and good progress in improving the underlying performance and profitability of our businesses. Cost reduction initiatives delivered a £39m saving which enabled us to deliver 28% growth in underlying operating profit despite the challenging market backdrop.

"During my first five months at SIG, I have been impressed with the capability of our people and can see a clear opportunity to increase the value that the Group can deliver for shareholders, as outlined in our update in January.

"The Group is well positioned in markets that continue to have strong long-term growth drivers. The operating leverage benefits when markets return to growth will be significant, and further opportunities for self-help have been identified. We will focus on optimising both the business performance and the business portfolio in order to create a best-in-class growth platform for building materials distribution in Europe. In 2026 we aim to deliver further financial and strategic progress, and I look forward to working with the Board and all the SIG management teams in driving substantial value over time."

 

Notes

1. Like-for-like is defined as sales per working day in constant currency, excluding completed acquisitions and disposals, and adjusted to exclude the net impact of branch closures and openings.

2. Underlying represents the results before Other items. Other items relate to the amortisation of acquired intangibles, impairment charges, net restructuring costs, cloud-based ERP implementation costs, costs associated with refinancing and other specific items.

3. Free cash flow is defined as all cash flows excluding M&A transactions, dividend payments, and financing transactions. Operating cash flow represents free cash flow before interest and financing and tax.

 

An Investor and Analyst presentation will be available on www.sigplc.com from 7:15am UK time today. A live presentation of the results followed by Q&A, hosted by Pim Vervaat, CEO, and Ian Ashton, CFO, will take place at 10:00am UK time today.

Please click the link below to join the webinar:

https://storm-virtual-uk.zoom.us/webinar/register/WN_bKcDO5-wQGGVaUt9OCkPeA

Webinar ID:

869 0673 8129

 

Enquiries

SIG plc		+44 (0) 114 285 6300
Pim Vervaat Ian Ashton	Chief Executive Officer Chief Financial Officer
FTI Consulting		+44 (0) 20 3727 1340
Richard Mountain Vicky Hayns

 

LEI: 213800VDC1BKJEZ8PV53

 

About

SIG plc is a leading pan-European supplier of specialist building products to trade customers across the UK, France, Germany, Ireland, Benelux and Poland. With leading market positions in specialist insulation, interiors and roofing products, SIG facilitates one-stop access to an extensive product range, provides expert technical advice and coordinates often complex delivery requirements. For suppliers, SIG offers a channel through which products can be brought to a highly fragmented market of smaller customers and sites that are of insufficient scale to supply direct. SIG employs approximately 6,500 employees across Europe and is listed on the London Stock Exchange (SHI). For more information, please visit the Company's website, www.sigplc.com.

 

Trading overview

Reported Group sales were 1% lower in the year. This included a net 1% negative impact from the combined effect of exchange rates, the number of working days, and branch closures and openings during the year.

Group LFL sales were flat versus the prior year, up 1% in H1 and down 2% in H2. Subdued demand persisted across the Group's markets throughout 2025 and softened further in the final months of the year in several geographies, notably the UK, Germany and Ireland. Given this demand backdrop, pricing pressure remained elevated, and this led to a net 1% reduction in pricing in the year, despite modest increases in input costs. The impact of this was similar across H1 and H2.

 

LFL sales growth  2025 vs 2024	H1 Restated	H2	FY	FY25 sales
				£m
UK Interiors	6%	(1)%	3%	673
UK Roofing	4%	(1)%	2%	453
UK	5%	(1)%	2%	1,126
France Interiors	(7)%	(6)%	(6)%	190
France Roofing	(4)%	(5)%	(5)%	388
Germany	0%	(6)%	(3)%	432
Poland	3%	5%	5%	261
Benelux	3%	1%	2%	92
Ireland	3%	(10)%	(3)%	102
EU	(1)%	(4)%	(2)%	1,465
Group	1%	(2)%	0%	2,591

 

Demand in all markets remains well below historical levels, with European construction remaining at a low point in the cycle for a protracted period, without near term evidence of a meaningful recovery. Against this backdrop, our businesses continue to outperform and the majority are taking share within their end-markets.

The Group continues to make good progress on its operational initiatives, including those to drive efficiencies in costs and working capital. Most notably, the UK Interiors and Benelux businesses continue to benefit from the self-help programmes put in place last year.

In Q4 2025 we removed the separate management structure that was supporting the UK Specialist Markets businesses, and these businesses are now reported within either UK Interiors or UK Roofing. We believe these changes in management will allow us to better exploit the opportunities in these smaller specialist businesses, including synergies across our own portfolio.

Strategic progress

During 2025, the Group made good progress on its strategic goals, encompassing actions and focus on four key areas as follows:

Growth - despite the continued market weakness in 2025, we continued to deliver sales growth ahead of the market in the majority of our geographies. This was most pronounced in UK Interiors, driven by the successful turnaround programme in the UK Insulation and Drylining business, our largest business by revenue, which had a particularly strong year from a sales perspective, growing 8% in H1, 3% in H2, and 5% for the full year.

Execution - the Group has focused on improving execution in order to deliver consistent and profitable growth. In 2025 the Group continued to focus on streamlining its operating costs to mitigate the impact of weaker demand, but also to improve ongoing efficiency to drive higher margin and operating leverage when markets recover. Most notably, the UK Interiors and Benelux businesses continued to benefit from the self-help programmes put in place in Q4 2024. In December 2025, as part of the early phase of a portfolio review, we closed one of the smaller UK businesses, Mayplas, as it did not have the ability to deliver sustainable profitable growth. Across the Group as a whole, restructuring actions in 2025, including headcount reduction and realigning our branch footprint in some areas, led to a decrease in underlying operating costs of £39m, driven by these savings initiatives. 

Modernisation - the progressive modernisation and digitalisation of our operations is creating an important opportunity for the Group to increase profitability and efficiency sustainably over the medium and longer term. In 2025 we continued to expand our customer facing e-commerce platforms, with our French Interiors business launching its new e-commerce site in the pilot phase in the final quarter of the year, following the launch of a similar platform in Germany in 2024. These in-house developed platforms allow us to provide a more seamless and convenient customer experience.

Specialisation - as noted above, the former UK Specialist Markets businesses are now reported within either UK Interiors or UK Roofing. Growing in higher margin categories remains a key focus and we believe these changes will allow us to better exploit the opportunities in these smaller specialist UK businesses, including synergies across our own portfolio. The strategic assessment being undertaken of each business in the Group is also driving clarity on areas of specialism that we can develop in the future.

Vision 2030

In January 2026, the Group outlined its new Vision 2030 strategy, with the aim of creating an agile, focused and best-in-class pan-European distribution platform in building materials. In the medium and longer term, it is expected that this can deliver an operating margin of 3%-5% through the cycle, alongside robust and predictable cash generation.

The Group's immediate priorities are to improve the operating margin through further cost and efficiency programmes, including improved procurement. This will also help maximise the upside potential from operational leverage as markets recover and revenues grow. The Group also remains committed to sustaining investment in commercial initiatives to drive continued local market outperformance.

Procurement will be a key area of enhanced focus in 2026 and beyond. The Group's current annual procurement spend is c£2.3bn, and the aim is that by applying best practice we achieve an annualised benefit of at least 1% of spend from 2027.

We will, in addition, assess opportunities to simplify and optimise the current business portfolio to enhance the Group's focus on its most attractive growth markets to accelerate outperformance and deliver value creation.

Sustainability

While improving the Group's financial performance remains the key priority, we also made improvements in many of the Group's sustainability metrics during the year. Operational carbon emissions were lowered by 1%, and we further reduced waste that goes to landfill and completed our five-year focus period for our waste improvement programme. Despite the actions taken to reduce headcount and costs, the Group's employee engagement levels remained broadly stable, with our businesses keeping employee engagement as a key priority.

Balance Sheet

Continued focus on working capital management drove an improved performance in operating cash flow and resulted in a material reduction of the free cash outflow in the year to £12.0m (2024: £38.6m). This, along with some favourable currency movements, resulted in year end cash balances of £81.3m (2024: £87.4m). The Group's revolving credit facility ("RCF") of £90m was undrawn throughout 2025 and remains undrawn at the date of this report. Maintaining healthy liquidity headroom remains a key priority for 2026, and additional facilities are now available, specifically receivables factoring in selected markets, to support this.

Year-end net debt was £518.2m (2024: £497.3m). Combined with the higher profitability in the year, this resulted in year-end leverage of 4.7x (2024: 4.7x). Year-end net debt excluding lease liabilities was £194.9m (2024: £175.9m). Net lease liabilities, including an unfavourable currency movement, increased by £1.9m. Bond debt, including accrued interest, increased by £14.9m due to an unfavourable currency movement.

Dividend

No dividend will be paid for 2025. The Board reiterates its commitment to return to paying a dividend, appropriately covered by underlying earnings, when it is prudent to do so. Continued successful strategic execution, including sensible investment where appropriate, will deliver sustainable, profitable growth and cash generation as markets recover, allowing the Board to consider a range of capital allocation options.

Outlook

The Group continues to expect softness in market conditions in 2026 and, to the extent there is a recovery, that it is more likely to materialise in the second half of the year. Trading in the first weeks of 2026 has also been adversely affected by particularly poor weather across Europe, and as a result LFL sales for the first two months of the year have been weaker than expected. We expect improvement over the balance of the year, along with continued progress on self-help measures on both costs and working capital. We therefore expect to deliver further financial and strategic progress in 2026, and expect to maintain healthy levels of liquidity throughout the year.

The operational gearing in our business model applies equally strongly in conditions of rising demand, and the Group remains well positioned to benefit from the market recovery when it occurs. This also underpins the Board's confidence that the Group will deliver its targeted 3-5% operating margin range in the medium-term. This, combined with our focus on portfolio optimisation, which will continue at pace throughout 2026, will support the Board's overarching goal of delivering meaningful value creation over the medium and long-term.

 

FINANCIAL REVIEW

The Group again managed effectively the impact of challenging market conditions during 2025. At an underlying profit level, the effects of continuing subdued demand and marginally falling prices were more than mitigated by significant cost reduction, including ongoing restructuring and productivity initiatives, and solid progress on working capital initiatives. These actions also position the business to deliver a step-up in profitability and cash generation when markets return to growth. The Group has maintained robust liquidity and continued to invest in support of its commercial initiatives, enabling the businesses to outperform their local markets.

Revenue

Group revenue of £2,591.0m (2024: £2,611.8m) was 1% lower on a reported basis, including a net 1% negative impact from the combined effect of exchange rates, the number of working days, and branch closures and openings during the year. LFL revenues, which are adjusted to exclude the impact of branch closures and openings, were flat year-on-year. Within this, the impact of sales price deflation was approximately 1%.

Operating costs and profit

Gross profit decreased 2.0% to £627.1m (2024: £640.0m) at a gross profit margin of 24.2% (2024: 24.5%). The reduction in gross margin reflects greater than normal pricing pressure as a result of the weak demand environment.

The Group's operating costs decreased by 3.2% to £595.0m (2024: £614.9m). The decrease was primarily due to savings initiatives, including restructuring actions taken from H2 2023 onwards, partially offset by inflation, with the biggest impact of the latter being on wages and salaries. Operating costs in the year also benefited from £3.5m profit on the sale of properties in France Roofing and Poland.

The Group's underlying operating profit increased to £32.1m (2024: £25.1m), at an operating margin of 1.2% (2024: 1.0%). The reported operating loss was £9.4m (2024: £3.8m) after Other items of £41.5m (2024: £28.9m). Other items includes £23.4m impairment of goodwill and intangibles relating to Miers and other former UK Specialist Markets businesses, £6.3m impairment of right-of-use assets in the UK Interiors business, £9.0m of restructuring costs and £1.3m of ERP implementation costs.

 

Segmental analysis

UK

	Revenue 2025 £m	Revenue restated 2024 £m	LFL sales vs 2024	Underlying operating profit 2025 £m	Underlying operating profit restated 2024 £m
UK Interiors	673.1	665.0	3%	7.7	0.6
UK Roofing	453.4	448.7	2%	14.3	13.9
UK	1,126.5	1,113.7	2%	22.0	14.5

Following a change in the UK management structure announced in November 2025, we now report two segments in the UK, with the various Specialist Markets businesses separated out and reported within Interiors and Roofing. The 2024 segmental information has been restated in order to present it on a consistent basis with the 2025 numbers.

Revenue in UK Interiors, a specialist insulation, interiors and construction accessories distribution business, increased 1% to £673.1m (2024: £665.0m). LFL revenue was up 3% year-on-year, with the business outperforming the market. The increase in revenue and good progress on operating cost reductions, which were only partially offset by the impact of pricing pressure on the gross margin, resulted in the business reporting an improved profit of £7.7m (2024: £0.6m). The Insulation and Drylining business that forms the majority of UK Interiors had a particularly strong year from a sales perspective, growing 8% LFL in H1, 3% in H2, and 5% for the full year. Its resulting turnaround in profit was the driver of the profit improvement in UK Interiors as a whole.

Revenue in UK Roofing, a specialist roofing merchant, which now also includes our Building Solutions business, increased 1% to £453.4m (2024: £448.7m), with LFL revenue up 2%. This was despite a weak market, and was driven by the business's successful execution of its multi-year programme of business development and growth initiatives. Operating margin was stable, and this resulted in an operating profit of £14.3m (2024: £13.9m).

France

	Revenue 2025 £m	Revenue 2024 £m	LFL sales vs 2024	Underlying operating profit 2025 £m	Underlying operating profit 2024 £m
France Interiors	189.9	200.4	(6)%	4.8	6.2
France Roofing	388.4	410.1	(5)%	9.7	8.0
France	578.3	610.5	(5)%	14.5	14.2

France Interiors, a structural insulation and interiors business trading as LiTT, saw reported revenue decrease by 5% to £189.9m (2024: £200.4m), and by 6% on a LFL basis. This was driven by lower market demand, particularly in the new-build residential segment. The revenue decline, coupled with increased margin pressure, resulted in a £1.4m decrease in underlying operating profit to £4.8m (2024: £6.2m).

Revenue in France Roofing, a specialist roofing business trading as Larivière, decreased by 5% to £388.4m (2024: £410.1m), and also by 5% on a LFL basis. Demand and volumes were lower due to continued softening of the new-build market and input price deflation. The decreases in revenue and gross margin were more than offset by reduced operating costs and also £3.0m of profit on the disposal of certain properties, resulting in an operating profit increase of £1.7m to £9.7m (2024: £8.0m).

 

Germany

	Revenue 2025 £m	Revenue 2024 £m	LFL sales vs 2024	Underlying operating profit 2025 £m	Underlying operating profit 2024 £m
Germany	432.5	438.5	(3)%	1.3	4.7

Revenue in Wego/Vti, our specialist insulation and interiors distribution business in Germany, decreased 1% to £432.5m (2024: £438.5m). LFL revenue decreased 3%, though the business outperformed a soft overall market. Gross margin percentage remained stable year-on-year, whilst operating costs increased marginally, with inflation being mostly offset by cost savings, resulting in lower operating profit of £1.3m (2024: £4.7m).

 

Poland

	Revenue 2025 £m	Revenue 2024 £m	LFL sales vs 2024	Underlying operating profit 2025 £m	Underlying operating profit 2024 £m
Poland	260.5	241.4	5%	4.0	4.6

In our Polish business, a market-leading distributor of insulation and interiors products, revenue increased to £260.5m (2024: £241.4m), representing an 8% increase on a reported basis and 5% on a LFL basis. The impact of a weak market was more than offset by further improvements in our market position. However, the impact of this sales growth was more than offset by pricing pressure and operating cost inflation, resulting in lower operating profit of £4.0m (2024: £4.6m).

 

Benelux

	Revenue 2025 £m	Revenue 2024 £m	LFL sales vs 2024	Underlying operating  (loss) 2025 £m	Underlying operating  (loss) 2024 £m
Benelux	91.6	103.6	2%	(1.3)	(4.5)

 

Reported revenue from the Group's business in Benelux decreased to £91.6m (2024: £103.6m) with a c13% impact from the strategic decision to close seven branches in late 2024. LFL revenue, adjusted for these branch closures, was up 2%, helped by an inflationary tailwind. Gross margin improved due to favourable product mix in the remaining branches. The closures generated material operating cost savings, resulting in a lower underlying operating loss of £1.3m (2024: loss of £4.5m).

Ireland

	Revenue 2025 £m	Revenue 2024 £m	LFL sales vs 2024	Underlying operating profit 2025 £m	Underlying operating profit 2024 £m
Ireland	101.6	104.1	(3)%	2.7	3.3

Our business in Ireland comprises a specialist distributor of interiors and exteriors, and three separate specialist contracting businesses offering office fit-out, industrial infrastructure coatings services and kitchen/bathroom interiors fit-out. Revenue decreased by 2% to £101.6m (2024: £104.1m), and by 3% on a LFL basis, driven by a deterioration in the market in H2. This, coupled with operating cost inflation, resulted in reduced operating profit of £2.7m (2024: £3.3m).

 

Reconciliation of underlying to statutory result

Other items, being items excluded from underlying results, amounted to a charge of £41.7m for the year (2024: £30.5m) on a pre-tax basis and are summarised in the table below:

	2025 £m	2024 £m
Underlying loss before tax	(20.0)	(14.3)
Other items - impacting profit before tax:
Amortisation of acquired intangibles	(2.1)	(2.1)
Impairment charges	(29.7)	(7.3)
Cloud-based ERP implementation costs	(1.3)	(1.0)
Net restructuring costs	(9.0)	(13.4)
Costs associated with refinancing	-	(3.9)
Other specific items	0.6	(1.2)
Non-underlying finance costs	(0.2)	(1.6)
Total Other items	(41.7)	(30.5)
Statutory loss before tax	(61.7)	(44.8)

 

Other items are disclosed separately in order to provide a better indication of the underlying earnings of the Group. Further details of other items in 2025 are as follows:

·    Non-cash impairment charges in the year relate to right-of-use asset impairment in the UK Interiors business (£6.3m) and impairment of goodwill and other intangible assets in the Miers and other former UK Specialist Markets businesses (£23.4m), as a result of a reduction in future cash flow forecasts due to continued challenging market conditions.

·    Net restructuring costs in the year comprised £2.8m of redundancy and related staff costs and £6.2m of branch closure costs. The latter includes £4.2m non-cash impairment of right-of-use assets and tangible fixed assets, of which £3.5m relates to a head office property which is no longer being fully occupied by the Group, offset by £1.1m gain on lease terminations, all related to restructuring across the Group.

·    Cloud-based ERP implementation costs relate to project configuration and customisation costs associated with strategic cloud computing arrangements, which are expensed, rather than being capitalised as intangible assets.

·    Other specific items comprised income relating to an investment property no longer in use by the Group and other credits relating to the finalisation of amounts included in previous years.

Taxation

The effective tax rate for the Group on the total loss before tax of £61.7m (2024: £44.8m loss) is a "negative tax rate" of 3.9% (2024: negative 8.5%).

The tax charge for the year of £2.4m is related to taxable profits made in the majority of our EU markets. Tax losses in the UK and Benelux, which cannot be surrendered or utilised cross border, are not currently recognised as deferred tax assets, and this impacts the effective tax rate. Due to a reduction of the profit before tax in the overseas operating companies and the ongoing losses in the UK, the Group has generated an overall loss before tax which, alongside the positive P&L tax charge in the overseas operating companies, has resulted in the negative effective tax rate.

In accordance with UK legislation, the Group publishes an annual tax strategy, which is available on our website (www.sigplc.com).

Pensions

The Group operates a number of pension schemes, four of which provide defined benefits based upon pensionable salary. One of these schemes, in the UK, has assets held in a separate trustee administered fund, and three are overseas book reserve schemes. The largest defined benefit pension scheme is the UK scheme, which was closed to further accrual in 2016.

The Group's total pension charge for the year, including amounts charged to interest after Other items, was £7.5m (2024: £8.3m), of which a charge of £1.0m (2024: £1.1m) related to defined benefit pension schemes and £6.5m (2024: £7.2m) related to defined contribution schemes.

The total net liability in relation to defined benefit pension schemes at 31 December 2025 was £16.4m (2024: £18.2m). The latest triennial actuarial valuation of the UK scheme was as at 31 December 2022 and was concluded in March 2024. The scheme remains well funded. The next triennial valuation as at 31 December 2025 has recently commenced.

Financial position

Overall, the net assets of the Group decreased by £59.3m to £120.5m (2024: £179.8m), with a cash position at year end of £81.3m (2024: £87.4m) and net debt of £518.2m (2024: £497.3m), which includes net lease liabilities of £323.3m (2024: £321.4m). Excluding lease liabilities net debt was £194.9m (2024: £175.9m).

The movement in net debt mainly reflects the movement in cash noted below. Net lease liabilities increased by £1.9m in the year, including an unfavourable currency impact.

Cash flow

		2025 £m	2024 £m
	Underlying operating profit	32.1	25.1
	Add back: Depreciation	77.4	78.9
	Add back: Amortisation	0.7	1.2
	Underlying EBITDA	110.2	105.2
	Decrease/(increase) in working capital	28.5	(6.6)
	Repayment of lease liabilities	(70.0)	(67.5)
	Capital expenditure	(16.0)	(16.1)
Other		(0.7)	2.2
	Operating cash flow pre exceptional cash items1	52.0	17.2
	Cash exceptional items	(9.3)	(13.0)
	Operating cash flow1	42.7	4.2
	Interest and financing	(51.2)	(34.8)
	Tax	(3.5)	(8.0)
	Free cash flow1	(12.0)	(38.6)
	Acquisitions and investments	-	(8.4)
	(Repayment)/drawdown of debt	(0.8)	7.3
	Total cash flow	(12.8)	(39.7)
	Cash and cash equivalents at beginning of the year2	87.4	132.2
	Effect of foreign exchange rate changes	6.7	(5.1)
	Cash and cash equivalents at end of the year2	81.3	87.4

1.     Operating cash flow represents free cash flow before interest and financing and tax. Free cash flow is defined as all cash flows excluding M&A transactions, dividend payments and financing transactions.

2.     Cash and cash equivalents at 31 December 2025 comprise cash at bank and on hand of £81.3m (2024: £87.4m) less bank overdrafts of £nil (2024: £nil).

During the period, the Group delivered £52.0m of operating cash flow before exceptional cash spend, which represents a 162% conversion of the underlying operating profit. Post exceptional cash, the conversion was 133%. The higher profit in the year and continued working capital discipline were the key drivers of higher year-on-year operating cash flow, partially offset by slightly higher lease repayments. The Group reported a free cash outflow of £12.0m (2024: £38.6m). This improvement versus the prior year resulted from the improved operating cash flow, partially offset by the increased interest payments following the refinancing in October 2024.

Capex during the year was £16.0m (2024: £16.1m).

"Other" in the cash flow includes payments to the Employee Benefit Trust of £1.7m (2024: £0.8m) to fund share plans, £2.5m payment to the defined benefit pension scheme in the UK, add back of non-cash P&L items, provision movements, and proceeds on sale of property, plant and equipment. Cash exceptional items are those that are related to Other items in the Consolidated income statement, and include restructuring costs and ERP implementation costs.

Financing and funding

The Group's debt funding comprises €300m of 9.75% and €13.5m of 5.25% fixed rate secured notes, maturing in October 2029 and November 2026 respectively, and an RCF of £90m which matures in April 2029. The secured notes are subject to incurrence-based covenants only. The RCF has a leverage maintenance covenant that was set at 6.5x for 2025, and is set at 5.5x for 2026 and 5.0x thereafter, all of which only apply if the facility is over 40% drawn at a quarter end reporting date. The RCF was undrawn throughout 2025, and remains undrawn at the date of this report.

The Group's liquidity position remained robust throughout 2025, and at the end of the period stood at £171m, consisting of cash of £81m and the £90m undrawn RCF noted above.

	2025 £m	2024 £m
Cash and cash equivalents at end of the year	81.3	87.4
Undrawn RCF at end of the year	90.0	90.0
Liquidity	171.3	177.4
Net debt	518.2	497.3
Leverage	4.7x	4.7x

 

Directors' responsibility statement on the Annual Report

The responsibility statement below has been prepared in connection with the Company's full Annual Report for the year ended 31 December 2025. Certain parts solely thereof are not included within this announcement.

We confirm that to the best of our knowledge:

(a) the financial statements, prepared in accordance with the relevant financial reporting framework, give a true and fair view of the assets, liabilities, financial position and profit or loss of the Company and the undertakings included in the consolidation taken as a whole;

(b) the Strategic report includes a fair review of the development and performance of the business and the position of the Company, and the undertakings included in the consolidation taken as a whole, together with a description of the principal risks and uncertainties that they face; and

(c) the Annual Report and financial statements, taken as a whole, are fair, balanced and understandable and provide the information necessary for shareholders to assess the Company's position and performance, business model and strategy.

This responsibility statement was approved by the Board of Directors on 3 March 2026 and signed on its behalf by:

By order of the Board
Pim Vervaat	Ian Ashton
Director	Director
3 March 2026	3 March 2026

 

 

Cautionary statement

The securities of the Group have not been and will not be registered under the US Securities Act of 1933, as amended (the "Securities Act"), or under the securities laws of any state or other jurisdiction of the United States, and may not be offered, sold, pledged or transferred, directly or indirectly, in, into or within the United States except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and in compliance with any applicable securities laws of any relevant state or other jurisdiction of the United States. There has been and will be no public offering of the securities of the Group in the United States.

This announcement has been prepared to provide the Company's shareholders with a fair review of the business of the Group and a description of the principal risks and uncertainties facing it. It may not be relied upon by anyone, including the Company's shareholders, for any other purpose.

This announcement contains forward-looking statements that are subject to risk factors including the economic and business circumstances occurring from time to time in countries and markets in which the Group operates and risk factors associated with the building and construction sectors. By their nature, forward-looking statements involve a number of risks, uncertainties and assumptions because they relate to events and/or depend on circumstances that may or may not occur in the future and could cause actual results and outcomes to differ materially from those expressed in or implied by the forward-looking statements. No assurance can be given that the forward-looking statements in this announcement will be realised. Statements about the Directors' expectations, beliefs, hopes, plans, intentions and strategies are inherently subject to change and they are based on expectations and assumptions as to future events, circumstances and other factors which are in some cases outside the Group's control. Actual results could differ materially from the Group's current expectations.

It is believed that the expectations set out in these forward-looking statements are reasonable but they may be affected by a wide range of variables, which could cause actual results or trends to differ materially, including but not limited to, changes in risks associated with the level of market demand, fluctuations in product pricing and changes in foreign exchange and interest rates.

The Company's shareholders are cautioned not to place undue reliance on the forward-looking statements. This announcement has not been audited or otherwise independently verified. The information contained in this announcement has been prepared on the basis of the knowledge and information available to Directors at the date of its preparation and the Company does not undertake any obligation to update or revise this announcement during the financial year ahead.

 

 

Consolidated income statement

For the year ended 31 December 2025

 

		Underlying1	Other items1	Total	Underlying1	Other items1	Total
		2025	2025	2025	2024	2024	2024
	Note	£m	£m	£m	£m	£m	£m
Revenue	2	2,591.0	-	2,591.0	2,611.8	-	2,611.8
Cost of sales		(1,963.9)	-	(1,963.9)	(1,971.8)	-	(1,971.8)
Gross profit		627.1	-	627.1	640.0	-	640.0
Other operating expenses	3	(592.4)	(41.5)	(633.9)	(609.1)	(28.9)	(638.0)
Impairment losses on trade receivables	3	(6.1)	-	(6.1)	(5.8)	-	(5.8)
Gain on disposal of property	3	3.5	-	3.5	-	-	-
Operating profit/(loss)		32.1	(41.5)	(9.4)	25.1	(28.9)	(3.8)
Finance income	4	1.7	-	1.7	2.7	-	2.7
Finance costs	4	(53.8)	(0.2)	(54.0)	(42.1)	(1.6)	(43.7)
Loss before tax		(20.0)	(41.7)	(61.7)	(14.3)	(30.5)	(44.8)
Income tax (expense)/credit	5	(2.7)	0.3	(2.4)	(5.4)	1.6	(3.8)
Loss after tax		(22.7)	(41.4)	(64.1)	(19.7)	(28.9)	(48.6)
Attributable to:
Equity holders of the Company		(22.7)	(41.4)	(64.1)	(19.7)	(28.9)	(48.6)
Loss per share
Basic	6			(5.5)p			(4.2)p
Diluted	6			(5.5)p			(4.2)p

 

¹ Underlying represents the results before Other items. Other items have been disclosed separately in order to give an indication of the underlying earnings of the Group. Further details are disclosed in Note 3.

 

 

Consolidated statement of comprehensive income

For the year ended 31 December 2025

 

		2025 £m	2024 £m
Loss after tax for the year		(64.1)	(48.6)
Items that will not subsequently be reclassified to the Consolidated income statement:
Remeasurement of defined benefit pension liability		0.2	(0.2)
Deferred tax movement associated with remeasurement of defined benefit pension liability		(0.2)	-
		-	(0.2)
Items that may subsequently be reclassified to the Consolidated income statement:
Exchange difference on retranslation of foreign currency goodwill and intangibles		2.6	(2.2)
Exchange difference on retranslation of foreign currency net investments (excluding goodwill and intangibles)		14.1	(13.1)
Exchange and fair value movements associated with borrowings and derivative financial instruments		(14.5)	12.3
Losses on cash flow hedges		-	(1.1)
Transfer to profit and loss on cash flow hedges		1.2	1.0
		3.4	(3.1)
Other comprehensive income/(expense)		3.4	(3.3)
Total comprehensive expense		(60.7)	(51.9)
Attributable to:
Equity holders of the Company		(60.7)	(51.9)

 

 

Consolidated balance sheet

As at 31 December 2025

 

		2025	2024
	Note	£m	£m
Non-current assets
Property, plant and equipment		67.7	64.9
Right-of-use assets		248.2	250.3
Goodwill		115.6	129.0
Intangible assets		2.4	12.5
Lease receivables		1.6	1.9
Deferred tax assets		5.1	4.6
Non-current financial assets		0.2	0.3
		440.8	463.5
Current assets
Inventories		257.0	253.8
Lease receivables		0.3	0.3
Trade and other receivables		359.9	370.8
Current tax assets		1.5	2.3
Current financial assets		0.2	0.1
Cash at bank and on hand		81.3	87.4
		700.2	714.7
Total assets		1,141.0	1,178.2
Current liabilities
Trade and other payables		370.9	358.6
Lease liabilities		69.1	64.9
Interest-bearing loans and borrowings		16.5	5.2
Derivative financial instruments		0.2	1.3
Current tax liabilities		0.1	1.7
Provisions	10	5.1	7.6
		461.9	439.3
Non-current liabilities
Lease liabilities		256.1	258.7
Interest-bearing loans and borrowings		259.7	256.9
Derivative financial instruments		-	0.1
Other payables		2.5	2.8
Retirement benefit obligations		16.4	18.2
Provisions	10	23.9	22.4
		558.6	559.1
Total liabilities		1,020.5	998.4
Net assets		120.5	179.8
Capital and reserves
Called up share capital		118.2	118.2
Treasury shares reserve		(6.1)	(8.6)
Capital redemption reserve		0.3	0.3
Share option reserve		6.7	7.8
Hedging and translation reserves		4.1	0.7
Cost of hedging reserve		0.1	0.1
Merger reserve		92.5	92.5
Retained losses		(95.3)	(31.2)
Attributable to equity holders of the Company		120.5	179.8
Total equity		120.5	179.8