SFE.L Share News (SFE)

(Sharecast News) - Shares in Safestyle surged on Monday as the Bradford-based double-glazing company said it has settled its claims against rival SafeGlaze, which has agreed to change its name and rebrand fully.Safestyle had accused NIAMAC developments, trading as SafeGlaze, of trade mark infringement, passing off, misuse of confidential information, malicious falsehood and various other matters.As part of the settlement, NIAMAC has agreed that the court injunctions put in place in May and July will be replaced by appropriate undertakings to the court"The settlement governs future relations between Safestyle UK and NIAMAC to prevent the possibility of any acts of intimidation or harassment of Safestyle UK representatives. In addition, SafeGlaze UK has agreed to change trading name and rebrand fully within an agreed period of time," Safestyle said."The board of Safestyle is pleased that the company has reached a settlement with NIAMAC. Safestyle UK remains the UK's leading window company and the management team looks forward to refocusing its efforts with this case now successfully concluded and behind them."Safestyle announced back in May that it was seeking damages and injunctive relief against Safeglaze, after saying in its profit warning in February that it had taken a hit from the activities of an "aggressive new market entrant" that turned out to be SafeGlaze.Safestyle also issued profit warnings in December and February, and was slapped with an £850,000 fine from the Health & Safety Executive in April.Liberum reckoned Safestyle is now well placed to compete with SageGlaze now that it has a level playing field, and the brokerage expects new management to stabilise the business and start to restore profitability."We believe that there is significant recovery potential as Safestyle replaces employees poached by SafeGlaze and market share starts to be recovered and grows once again. This remains a very fragmented industry, with Safestyle having around 11% market share and competitors 2-4 (Anglian, Everest and Safeglaze) having 15-20%. We remain convinced that Safestyle has a cost advantage in manufacturing, which should enable momentum in market share to be turned positive once again."At 1450 BST, the shares were up 25% to 50p.