Lazard sticks with its own advice

LAST MONTH, SIG, a specialist supplier of insulation and other materials to the UK and continental European building and construction industries, announced a £325 million ($469 million) placement of equity to existing and new shareholders to strengthen its balance sheet for the worrying and highly uncertain times ahead.

The Sheffield-headquartered company, which grew rapidly from 2003 to 2007 partly through acquisition, employs 13,300 people operating from 800 sites. It spent 2008 hunkering down as trading deteriorated. It cancelled planned acquisition spending, closed 80 sites, cut 7% of its workforce, and improved management of working capital.

It remains to be seen, though, if this will be enough to preserve it through an economic downturn of unknown duration and severity.

In June and July this year, SIG faces debt maturities totalling £78.8 million, which it must either roll over or repay. Although it has the cash to do this, it...