(Alliance News) - Safestyle UK PLC on Tuesday said that recent political and economic news had adversely affected order intake from late September to the end of October, as it saw value across the period drop below expectations.
Safestyle is a Bradford, England-based provider of double-glazed windows, conservatories, and French, patio-sliding, and bi-folding doors.
The company said that order intake from September to October was 7.6% behind guidance, and 2.7% lower than the prior year. It also noted higher costs of acquisition than anticipated, similarly attributed to the "challenging market context".
Though Safestyle was encouraged by an uptake in demand over November, returning order intake to expected levels, it said previous volatility was likely to "significantly impact" profitability for the financial year.
Safestyle shares were trading 9.5% lower at 28.00 pence each in London on Tuesday afternoon.
However, it also said that recently improved order intake would close the year "significantly ahead" of its original expectations.
In other news, Safestyle has continued its transition to a new supplier for PVCu profile, which will conclude by the end of the year. There is expected to be a small impact on manufacturing volumes, and thus installation volume levels, to ensure there is sufficient time for a smooth switchover.
The board has also reached agreement on heads of terms for a replacement of its existing facility, with a new GBP7.5 million revolving credit facility extending out to the end of 2026.
Looking ahead, Safestyle said it expects pretax profit materially below current market expectations, and net cash lower than guidance at around GBP9 million.
By Holly Beveridge; hollybeveridge@alliancenews.com
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