March 14 British building materials suppler SIG
cut its dividend by 20 percent and named a new chief
executive on Tuesday as it battles to recover from a November
The group said Meinie Oldersma, currently head of industrial
products distributor Brammer Ltd, would join as chief executive
in April, bringing considerable experiencing in helping turn
around and grow businesses across Europe.
The insulation, roofing and interior fittings firm's former
head stepped down after the company said in November it would
miss 2016 profit forecasts due to weak demand, tougher
competition and delays to some projects after Britain's vote to
leave the European Union.
"Since November we have slowed or stopped a number of
internal initiatives, which will allow our team to refocus on
customers and sales growth in order to generate cash ... This
will ensure that we build on SIG's significant potential in
2017," Interim CEO Mel Ewell said in a statement.
The company reported a 12.5 percent fall in underlying
pretax profit to 77.5 million pounds ($94.1 million) for the
year ended Dec. 31, in line with its previously stated range of
75 million pounds to 80 million pounds.
It cut the dividend to 3.66 pence per share from 4.60 pence
SIG said trading in the first two months of 2017 had been in
line with its expectations, though markets remained competitive
and it was experiencing some supplier price inflation.
($1 = 0.8237 pounds)
(Reporting by Esha Vaish in Bengaluru; Editing by Mark Potter)