Safestyle revenue charges ahead in 2016

UK-focused retailer and manufacturer of PVCu windows and doors Safestyle UK provided a trading update for the year to 31 December on Monday, with revenue for the year increasing 9.8% to approximately £163.5m.

The AIM-traded firm claimed profit before tax showed “good progress” during the period, and was in line with board expectations.

As it had expected, its second half showed slower growth than H1 due to more challenging comparatives.

The board said performance in 2016 was “pleasing” and it estimated that it continued to gain market share.

It said its growth was reflected in the increase in frames manufactured during the year - up 3.2% to 288,460 - while the number of installations increased 4.7% to 62,989.

Price increases implemented at the start of 2016 helped Safestyle to deliver improved operating margins, the board said, offsetting consumer finance subsidy costs, which had become an established feature of our cost base.

Cash flow also continued to be strong, and the board said it ended the year with cash of £13.5m - down from £16.5m at the start of the year - having paid a special dividend during the year of £5.6m and incurred £4.6m of expenditure on its new factory extension, which continued to be on time and on budget.

“I am pleased to report that trading during 2016 was consistently strong and that we have achieved another year of record turnover,” said CEO Steve Birmingham.

“2017 will see increases in our raw material costs primarily due to sterling weakness.”

Birmingham said the company planned to offset such increases by improving the price it obtains for its products.

“Despite the uncertain macroeconomic outlook, we remain cautiously optimistic and believe we are well positioned to continue growing the business.”

The company said it intends to announce its audited results for the year ended 31 December on 23 March.