28 Feb 2018 07:00
28 February 2018
Safestyle UK plc
("Safestyle" or the "Group")
Trading Update
Safestyle UK plc, the leading retailer and manufacturer of PVCu replacement windows and doors to the UK homeowner market, today issues an update on current trading.
The Group announced on 13 December 2017 that it had seen a continuing deterioration in the market resulting from declining consumer confidence and the Board expected market conditions to continue to be very challenging in 2018. The activities of an aggressive new market entrant have added to an already competitive landscape and impacted the Group in certain areas of its operations. As a result, the Group's order intake in 2018 to date has been disappointing and below our expectations.
The Group has reviewed and reduced its cost base and carried out the planned restructuring of its Sales and Canvass functions. The Group continues to invest in information technology to ensure it can deliver an enhanced end-to-end customer experience and improve operational efficiency.
Guidance for the year ended 31 December 2017 remains unchanged. The Board now expects Group revenues and underlying profit before tax for the year ending 31 December 2018 to be materially below 2017 levels and current market expectations.
The Group continues to be cash generative, with a strong cash position and robust balance sheet. Safestyle remains very well invested for any upturn in demand and the Board expects the benefits of its cost savings programme to take effect in 2018, particularly in the second half.
The Group will announce its final results for the year ended 31 December 2017 on 22 March 2018 when it expects to declare a final dividend for 2017 of 7.5p in line with its normal 1/3:2/3 policy.
The information contained within this announcement is deemed by the Company to constitute inside information stipulated under the Market Abuse Regulation (EU) No. 596/2014. Upon the publication of this announcement via the Regulatory Information Service, this inside information is now considered to be in the public domain.
Enquiries:
Safestyle UK plc Steve Birmingham, Chief Executive Officer Mike Robinson, Chief Financial Officer
| via FTI Consulting |
Zeus Capital (Nominated Adviser & Joint Broker) Nick How / Dominic King
| Tel: 0203 829 5000 |
Liberum Capital Limited (Joint Broker) Neil Patel / Jamie Richards
| Tel: 0203 100 2100 |
FTI Consulting (Financial PR) Alex Beagley / James Styles
| Tel: 0203 727 1000 |
About Safestyle UK plc
The Group is the leading retailer and manufacturer of PVCu replacement windows and doors to the UK homeowner market. For more information please visit www.safestyleukplc.co.uk or www.safestyle-windows.co.uk.