Company will continue to cut costs in response to uncertainty over spending cuts

SIG has reported a recovery in sales after a turbulent period of falling turnover and rising losses.

The product manufacturer today revealed that sales increased in the second quarter of 2010 and were up 4% in July year on year.

Poor weather conditions hit first quarter sales while overall revenue for the six months to 30 June 2010 fell 4% to 拢1.29bn.

The firm did manage to scale back losses in the first half posting a pre-tax loss of 拢2.2m compared to 拢9.2m in 2009.

Despite the recent uplift in sales, chairman Les Tench remained cautious about recovery in its markets.

He said: 鈥淐aution is based on the continuing macroeconomic uncertainty and concerns about the potential impact of government austerity measures and credit availability on the timing and path of the construction markets鈥� recovery.鈥�

Tench said the group was looking to cut costs to help the business return to profitability.

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