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SHI

Sig PLC

Industrial Goods and Services First-pass screen £95m
300/1000 Overall fit
AI beneficiary 35% 15
Operating leverage 25% 48
Valuation 25% 30
Downside protection 15% 35

First-pass take

SIG is a loss-making building materials distributor (£61.7m pre-tax loss, 0% LFL growth) with zero AI exposure, 4.7x leverage, negative free cash flow, and tight covenant headroom (8% revenue resilience). Recovery depends entirely on European construction market, making this a speculative cyclical turnaround, not a disciplined value play.

Flags

loss-makingnegative-fcfhigh-leveragecyclicalno-ai-exposuregoing-concerncovenant-riskturnaroundno-dividend