Safestyle interim profit drops amid challenging markets
Safestyle - whose shares slumped a couple of weeks ago on the back of a profit warning - reported a drop in first-half profit amid increasingly challenging markets.
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In the six months to the end of June, underlying pre-tax profit at the retailer and manufacturer of PVCu replacement windows and doors fell to £9m from £10.6m in the same period a year ago, while revenue edged up 1.4% to £82.5m.
The company warned earlier this month that its order intake had fallen beyond the board's expectations since it told the market in July that profit for the year would be lower than previously anticipated. On Thursday, Safestyle's chief executive Steve Birmingham said the group had experienced a drop in profits in what was "the severest contraction of our market since 2008/9".
"So far in H2 we have maintained our order intake in line with the previous year and have already commenced a number of initiatives to reduce our cost base," he said.
"The group's cash conversion and balance sheet remain strong and the board is confident of outperforming the market and gaining market share based on our differentiators of price competitiveness, promotional finance offers, quality energy efficient products and outstanding manufacturing capability."
Volumes of frames installed in the period were down 6.8% to 139,612 but average unit sales prices were up 6% to £599 and the company's market share grew to 11.2% at the end of June from 10.2% last year.
Also on Thursday, Safestyle announced a £2.5m share buyback, which if executed would end on 21 October.
At 1000 BST, the shares were up 7.8% to 200p.