SIG plc (LSE:SHI) shares rose 8.4% on Friday after the building materials distributor announced that Chief Financial Officer Simon Kesterton will succeed Pim Vervaat as Chief Executive Officer on 1 May 2027.
The appointment forms part of a previously outlined leadership succession plan, under which Vervaat will move from his current executive position to become non-executive Chair of the company.
Vervaat will remain Chief Executive until the transition takes effect, providing continuity during the implementation of SIG’s Vision 2030 strategic programme.
The company initially outlined the planned leadership transition in July 2025, when it announced that Vervaat was expected to serve as Chief Executive for approximately 18 months before moving to the Chair position.
Kesterton’s appointment follows his involvement in the development of SIG’s financial and operational strategy, including its performance improvement and cash generation objectives.
The board has begun a search for a successor to Kesterton as Chief Financial Officer, with further details of the appointment process expected to be announced at a later date.
SIG Chair Andrew Allner commented on Kesterton’s contribution to the business, saying he “has brought valuable commercial insight and strong financial discipline to the business, as well as being integral to development of the Vision 2030 strategic plan.”
The board said Kesterton’s experience within SIG places him in a position to oversee the continued implementation of the company’s strategic priorities.
Vision 2030 focuses on improving operating performance, increasing cash generation and strengthening the group’s balance sheet.
The programme includes specific financial objectives intended to support SIG’s operational and financial position over the coming years.
Commenting on the company’s priorities, Kesterton said: “The Vision 2030 plan is at the heart of our priorities, notably delivering at least £100m of cash generation by the end of 2027 and £50m of run rate operating profit improvement by mid-2028.”
These targets remain forward-looking objectives, with delivery dependent on the company’s operational performance and execution of its strategic initiatives.
Vervaat also highlighted Kesterton’s involvement in implementing the strategy, referring to his experience in financial leadership, performance management and business transformation.
The planned transition will see Kesterton assume responsibility for the group’s executive management while Vervaat moves into a non-executive oversight role.
SIG has not announced any changes to its Vision 2030 financial targets in connection with the leadership appointments.
The company’s shares advanced following the announcement, although the extent to which the succession plan contributed to the share price movement cannot be established independently.
Further information on the appointment of a new Chief Financial Officer will be provided once the board’s recruitment process progresses.
About SIG plc
SIG plc (LSE:SHI) is a building materials distributor supplying specialist construction products to customers in the building and construction sectors.
The company operates through distribution businesses serving construction professionals and contractors, with activities focused on providing building products and associated services.
SIG’s Vision 2030 strategy is intended to improve profitability, cash generation and balance sheet strength through operational and financial performance initiatives.
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