SIG shares fall after disappointing results

Shares in the FTSE 250 company, Europe’s largest supplier of insulation products, fell 7.6p to 137.1p, as revenues dropped 1.4 per cent to £2.57bn in 2015

SIG provides material to the construction industry (Getty)

Investors gave SIG the cold shoulder after the insulation specialist’s annual results received a lukewarm reception from analysts.

Shares in the FTSE 250 company, Europe’s largest supplier of insulation products, fell 7.6p to 137.1p, as revenues dropped 1.4 per cent to £2.57bn last year and underlying pre-tax profits slumped 12 per cent to £87.4m. Traders suggested the upbeat outlook was unjustified and were concerned about management’s unwavering faith that “demand should pick up” in the UK.

Similar questions were asked by Numis Securities, which reminded its clients that margins remain under pressure in the UK and that growth in Europe was weaker than expected.

The mining rally fizzled out, but oil majors came to the rescue for the FTSE 100, which ended up 20.88p points at 6,146.32 after the price of Brent crude jumped $1.26 to $40.91 a barrel, boosting Shell by 25.5p to 1,689p.

Analysts took the axe to their forecasts for Ashtead Group, with fears building over the tool-hire firm’s growth prospects in the US. Credit Suisse predicted profit growth would stall in the next few years and cut its earnings forecasts for next year by 15 per cent and for the following year by 29 per cent, and downgraded its rating to underperform.Ashtead suffered heavy losses early on, but ended just 9p lower at 852.5p.

Burberry, off 98p at 1,364p, fell out of fashion after HSBC revealed there was no mystery bidder and it was merely trading shares on behalf of several clients.

FTSE 250 car dealer Lookers reversed 1p to 162.1p as its annual results hit targets, while smaller AIM dealer Vertu Motors fell 3.25p to 65.25p on plans to raise £35m through a share placing.

Lakehouse improved 5p to 45.75p as activist investor Slater Investments and the troubled social housing contractor’s founder Steve Rawlings called a vote to oust the board. Together they own more than 20 per cent of the company.

Meanwhile, AIM-listed HR firm Penna Consulting was 3.5p cheaper at 361.5p after agreeing to a £105m takeover by Swiss staffing giant Adecco at 365p per share, which will mean a £28m payday for chairman Stephen Rowlinson.