Building materials supplier SIG has announced Chief Executive Stuart Mitchell is stepping down after the Group issued a profit warning today, 11 November.

Mr Mitchell will be replaced by former Amey Chief Executive Mel Ewell, who is currently a Non-Executive Director at the company. He will act in the interim while the Board starts hunting for a new Group Chief Executive.

Leslie Van de Walle, Chairman of SIG, said: "On behalf of the Board and Group, I would liketo thank Stuart for his commitment and all that he has contributed during his four year tenure as Group Chief Executive."

"As Interim Group Chief Executive, Mel brings his experience in logistics, construction and engineering, and comes with a strong track record of operational delivery and successful change management at TNT and Amey."

In a trading update earlier, the company revealed like-for-like revenue had fallen 1.1% in the UK and Ireland between July and October.

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It blamed "weaker than anticipated" trading conditions and "intensified competition" in the UK, caused largely by a slowing of activity around the time of the EU referendum.

The Group's share price fell by over 20% earlier today following the news.

SIG said: "Following a slowing of activity around the time of the EU referendum, trading conditions in the UK have continued to soften and competition in the market has intensified.  In particular the Group has been impacted by delays to some projects in the commercial sector and subdued demand for technical insulation in the petrochemical and manufacturing sectors.  As already has been widely noted within the industry, the UK RMI market also remains challenging.

"Furthermore, while SIG has high confidence in the medium-term prospects for its offsite construction business, its recent performance has been affected by the commissioning of new plant and machinery which has taken longer than originally anticipated and led to the temporary deferral of some projects into 2017.  The order book for the business however is growing and remains strong."

The company said it now expects underlying profit before tax for the year ending 31 December 2016 will be in the range of £75m to £80m.

"The Group has accelerated its supply chain and procurement efficiency programmes and is confident of achieving savings in excess of £13m this year," it continued.

"In addition SIG has undertaken a further review of its UK branch network and cost structure which will provide it with annualised net savings of approximately £10m, with an exceptional charge of c.£10m.  These efficiencies are in addition to previously disclosed targets and mean that the Group is now targeting savings of at least £20m in 2017."

(LM/MH)