Safestyle down as it issues profit warning
Safestyle UK
0.32p
17:30 15/01/24
Retailer and manufacturer of PVCu replacement windows and doors Safestyle UK updated the market on its current trading on Friday, having told the market on 18 July that - given uncertain market conditions and weaker consumer confidence - it anticipated profit for the year would be lower than previously expected, and broadly in line with 2016.
FTSE AIM 100
3,595.66
17:08 19/04/24
FTSE AIM All-Share
745.67
17:08 19/04/24
General Retailers
3,864.64
17:09 19/04/24
The AIM-traded firm said that since then, its order intake had declined beyond the board's expectations.
It believed that was due to an “accelerating weakness” in the market resulting from increasing consumer caution, as evidenced by the latest FENSA statistics, which it said showed that the overall market had deteriorated further with installations down by 18% in June and July compared to 2016.
“Safestyle has continued to grow market share and remains well-positioned in the event of a market recovery,” the board said in its statement.
“However, given the marked change in market conditions, we now expect full year 2017 group revenues to be flat year-on-year.
“At the same time, our efforts to drive order intake are incurring additional costs, thereby adversely affecting the group's margin performance, and leading to a material impact on full year profits.”
Safestyle remained cash generative, with a “significant” cash balance and a “robust” balance sheet, the board concluded.