Safestyle Share Count

Saturday, Oct 14 2017 by

I noticed that Safestyle UK (SFE.L) has been undergoing some dilution of shares from 2015 and on. Share counts have been:

2015: 80.72M
2016: 82.35M (about 2% dilution)
TTM: 83.19M (about 1% dilution for a half of one year)

Without reading the financial filings, can someone let me know is this all stock grants to management, and are these one-time special events, or is this going to be a new normal for them?

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Safestyle UK plc is a United Kingdom-based company engaged in the sale, manufacture and installation of replacement un-plasticized poly vinyl chloride (PVCu) windows and doors for the United Kingdom homeowner market. The Company's segment includes the sale, design, manufacture, installation and maintenance of domestic, double-glazed, replacement windows and doors. The Company has over 30 sales branches and approximately 10 distribution depots located throughout the United Kingdom. Its product range includes EcoDiamond WINDOWS, EcoDiamond UPVC DOORS, EcoDiamond BI-FOLD DOORS, EcoDiamond REPLACEMENT CONSERVATORIES, GuardDoor, Pavilion and Inspire. It has manufactured over 279,000 frames and carried out approximately 60,000 installations. The Company's subsidiaries include Style Group Holdings Limited, Style Group Limited and HPAS Limited. more »

LSE Price
74p
Change
-4.3%
Mkt Cap (£m)
64.0
P/E (fwd)
14.3
Yield (fwd)
1.2



  Is LON:SFE fundamentally strong or weak? Find out More »


2 Posts on this Thread show/hide all

gus 1065 14th Oct '17 1 of 2
1

A quick look at the company website and the accounts suggests they operate several share schemes for Directors and Employees (an SAYE scheme, an ESOP and presumably exec options as well). Looks as though most of these are options to buy at a reasonable exercise price (at the time the options are granted; most seem to now be well in the money). They seem to make available shares to an extent to all employees although as ever the CEO and CFO seem to take the lion's share. Can't see any reference to shares being issued for other purposes (e.g. as part of an acquisition) so I would infer they are used to provide employee/director remuneration. 

Easy enough to use the filter (Check Director and Capital Structure options) to identify Director and Capital Structure related RNS. The major recent dilution event seems to be on April 22, 2016 as covered by the attached RNS.


http://www.safestyleukplc.co.uk/investor-relations/rns-announcements.aspx

Not, in my opinion, the most usurious management bung (sorry, valid incentive program) I've seen on AIM but reasonably generous. As ever, take a look and form your own view.

Gus.

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pone 15th Oct '17 2 of 2

In reply to post #228753

Here is the key transaction, which it appears is an employee stock grant dating back to the 2013 IPO:
http://otp.investis.com/clients/uk/safestyle/rns/regulatory-story.aspx?cid=745&newsid=707856

So I am going to hope that 2% annual dilution is not the new normal for this company.

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