SIG shares lost a fifth of their value after the building supplier said “very challenging” markets would hit profits.
The group said full-year underlying profits would be at the bottom end of expectations, which ranged from £63m to £99m. The shares, which have lost 85 per cent in the past year, tumbled 21¾p to 93¼p.
UK volumes were subdued, it said, while pricing pressures and an unfavourable product mix were also holding back performance, with the UK interiors business particularly affected. European markets have not achieved the usual seasonal improvement in the past four weeks, it added.
Howard Seymour, an analyst at Numis Securities, said trading for SIG could still worsen as it was exposed to the later stage of the construction cycle.
“The group is only now starting to see the real impact of construction activity slowing in these markets,” he said, cutting his pre-tax profit forecasts from £90m to £54m.
SIG also said there would be more cost-cutting measures, expected to save another £8m annually, with further job cuts likely.
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