Emission-cut rules hand a boost to SIG

Insulation supplier SIG's profits have risen as Government incentives and regulations force builders to cut emissions from homes and buildings.

The Carbon Emissions Reduction Target scheme became effective in April and is "already generating strong growth in demand for retrofit insulation in existing homes", SIG said today.

Although it is not inured to the new housing slump this accounts for less than one-third of its revenues, with the rest coming from long-term private and public sector projects.

For the half year to end-June, sales rose 36% to £1.49 billion. Headline pre-tax profits were up 10% at £68.3 million. The dividend rises from 8p to 8.3p a share.

Chairman Les Tench said trading since the end of June has been solid but he realised that trading in some markets may become more challenging. "But we can outperform in a challenging market," he added.