Trading Update

08 September 2017

Safestyle UK plc

("The Group")

Trading Update

Safestyle UK plc (AIM: SFE), 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 18 July 2017 that given the uncertain market conditions and weaker consumer confidence it anticipated profit for the year would be lower than previously expected and broadly in line with 2016. Since then, the Group's order intake has declined beyond the Board's expectations. The Board believes this is due to an accelerating weakness in the market resulting from increasing consumer caution, as evidenced by the latest FENSA statistics, which show that the overall market has deteriorated further, with installations down by 18% in June and July compared to 2016.

Safestyle has continued to grow market share and remains well positioned in the event of a market recovery. However, given the marked change in market conditions, we now expect Full Year 2017 Group revenues to be flat year on year. At the same time, our efforts to drive order intake are incurring additional costs, thereby adversely affecting the Group's margin performance, and leading to a material impact on full year profits.

The Group remains cash generative, with a significant cash balance and a robust balance sheet.

The Group will announce its interim results on 21 September 2017.

Enquiries:

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