http://www.piworld.co.uk/videos/2015/11/9/safestyle-sfe-presentation-sharesoc-altrincham-281015
Presentation by Steve Birmingham, CEO and Mike Robinson, CFO at the ShareSoc Growth Company’s seminar in Altrincham, 28.10.15
Overview of Safestyle's business: their products, their business structure (low fixed costs, high cash generation) and how they’re finding business.
In spite of the wider market decline in double-glazing, Safestyle seem to be bucking the trend. SFE think their new financing option with Barclays Capital is a core reason. It does impact margins, but increased volume more than makes up for that.
Steve Birmingham, CEO and Mike Robinson, CFO, talk through what’s going on.
Safestyle UK (LON:SFE) Lovely full year results. Delivered as promised.
Sales growth in H2 2015 where PTP up 12% sounds more in line with the beginning of 2016 (rather than the FY 7.1% which was dragged down by a slower H1. The increase is probably due to the financing option. Which is offered at no risk to SFE. And the price increases introduced January 2016 cover the 1-2% cost of that.
Cheaper lead generation through the internet, so cost of marketing will be down.
The increase to manufacturing capacity over the next 18mths to initially, +50% with potential to +100% is very exciting. (And financed out of cash - in addition to the special dividend announced here!)
Highly cash generative - and willingness to return to shareholders, although sensibly creating a buffer for less buoyant times, and for manufacturing investment.
I liked management very much at ShareSoc Altrincham presentation last October (video in the link) - and they've lived up to everything suggested - I like management you can trust. (I bought after this presentation, and topped up first thing this morning.)
