Sales on the increase at materials firms Grafton and SIG

Strong demand outside the housing market and new outlets is helping drive sales upwards at materials firms Grafton and SIG.

Sales at the UK outlets of Irish builders’ merchant Grafton rose six per cent to £700 million in the first half of this year despite falling like-for-like sales in May and June.

Shares in insulation supplier SIG have been under pressure recently but UK and Irish sales in the first half of 2008 rose 17 per cent to £847 million. This was partly driven by acquisitions, but like-for-like growth in the UK alone was up four per cent.

David Taylor, an analyst at brokers NCB, said: “SIG is still delivering growth in deteriorating markets. The finances are robust, SIG has cut back on acquisition spend, which should make it net cash generative from here, and the fall in the share price over the last year is disproportionate to any trading outcome we envisage.”