Safestyle FY revenues rise despite 'unforeseen challenges'

Windows and doors retailer Safestyle said on Thursday that it expects revenues to have jumped in the twelve months ended 1 January despite dealing with "a number of unforeseen challenges".

Safestlye stated that full-year revenues were projected to have risen 7.7% to roughly £154.3m, while underlying losses before tax were seen in line with market expectations*.

The AIM-listed also noted that its cash position has reduced in line with its trading performance, dropping roughly £4.1m to £8.0m, down from the prior year's net cash balance of £12.1m on 2 Jan 2022 - predominantly due to the timing of working capital unwinds and non-recurring items.

Separately, Safestyle said the replacement of its existing facility with a new £7.5m revolving credit facility to the end of 2026 had been completed and added that it had completed the transition to its new supplier of PVCu profile on time and on budget over the Christmas period.

Looking forward, Safestlye said that although it expects that conditions will remain "reasonably challenging" in the short-term given the wider consumer environment, its order book on 31 January 2023 was "marginally higher" than at the same time last year.

Chief executive Rob Neale said: "Despite a number of unforeseen challenges in 2022, I am pleased with the significant progress we delivered on our strategic priorities and whilst we remain mindful of the difficulties facing UK consumers, we are confident that our business will continue to trade resiliently and return to profitability in 2023.

"Since taking on the CEO role in December, I am excited about the medium-term opportunities for the group and look forward to updating shareholders on progress at our Final Results in March."

As of 0925 GMT, Safestyle shares were up 7.70% at 24.77.

Reporting by Iain Gilbert at Sharecast.com