TROUBLED building supplies firm SIG says a number of employees will leave the business following disciplinary investigations relating to accounting irregularities and mis-stated profits.

Last month the group called in auditors from Deloitte and KPMG after a whistleblower identified issues at its UK insulation and interiors business, SIG Distribution.

This resulted in the discovery of "historical overstatement of profit" for the financial year ending December 31 2016, as well as prior years, SIG said at the time.

The firm, which runs a number of operations out of Dunston, Gateshead, has now said that, while an investigation carried out by KPMG found no further cause for concern, it will make a number of changes.

A spokesman said: "The group has implemented a number of priority controls recommendations in relation to both rebates and cash.

"With support from KPMG, the group has completed a review of financial reporting controls at SIG Distribution, which has identified no further material accounting cause for concern, although it has made some controls recommendations which are now being implemented.

"A number of employees are leaving the business following disciplinary investigations into the circumstances."

The departure of staff follows their suspension when the irregularities were first uncovered.

It comes as SIG, which has roofing branches in Stockton and Middlesbrough, also unveiled its full-year results, which saw losses narrow but the firm warn over a precarious UK market.

Pre-tax losses came in at £51.2m in 2017, down from the £110m booked the previous year.

Boss Meinie Oldersma said: "As the group moves into 2018, we are seeing increasingly confident markets across mainland Europe and Ireland, but also the first signs of capacity and labour constraint in buoyant construction markets.

"In contrast, we are seeing an increasingly challenging environment in the UK created by macro uncertainty and recent events in the construction industry."

Revenue was broadly flat at £2.87bn.