FTSE 250 building supplies group SIG was the best performer on the FTSE All-Share in early trading on Tuesday, rising more than 8 per cent after the company announced its full-year results and appointed a new chief executive.
The group said it was “disappointed” with its financial performance in 2016, and said it faces further uncertainty in many of its major markets this year.
However, the company said the “longer term outlook in our core markets continues to offer considerable opportunity”, and announced the appointment of former Brammer boss Meinie Oldersma to lead the company’s turnround.
At publication time, shares in the group were up 8.2 per cent, at 116p.
Some analysts remained sceptical, with Liberum’s Charlie Campbell arguing that the group is “structurally challenged”, but house broker Panmure Gordon said the stock’s recent recovery – today’s rise takes it back to the level it was at before November’s profit warning – suggests “investors are beginning to assume SIG can recover”.