REG - Safestyle UK PLC - Year-End Trading Update & Notice of Results

Safestyle UKAnnouncement

02/02/2023 07:00

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RNS Number : 6589O  Safestyle UK PLC  02 February 2023

2 February 2023

 

 

Safestyle UK plc

("Safestyle" or the "Group")

 

Year-End Trading Update & Notice of Results

 

Safestyle UK plc (AIM: SFE), the leading UK focused retailer and manufacturer
of PVCu replacement windows and doors for the homeowner market, today issues a
trading update for the year ended 1 January 2023 ("FY22") ahead of announcing
its Final Results on 23 March 2023.

 

The Group expects to report revenues of c.£154.3m, c.7.7% higher than the
prior year, and an underlying loss before tax in line with market
expectations*.

 

Further, the Group is pleased to report it completed the transition to its new
supplier of PVCu profile on time and on budget over the Christmas period and
is now manufacturing products using the Liniar system.

 

The cash position has reduced in line with the trading performance by c.£4.1m
to £8.0m compared to the prior year's net cash balance of £12.1m at 2 Jan
2022.  The decrease from the balance of £9.0m expected at the time of the
Group's trading update in November 2022, is predominantly due to the timing of
working capital unwinds and non-recurring items.

 

Separately, the replacement of the Group's existing facility with a new £7.5m
RCF to the end of 2026 has been completed.  As reported previously, the
Group's borrowing facilities will continue to be provided by Aurelius, albeit
terms and pricing now represent a reduced cost commensurate with the improved
health of the balance sheet.

 

Current Trading and Outlook

 

Whilst the Board expects that trading conditions will remain reasonably
challenging in the short-term given the wider consumer environment, the
Group's order book at 31 January 2023 was marginally higher than at the same
time last year.  The Board is also confident that the Group's proposition
will combine well with what has historically proven to be a resilient sector
supported by an ongoing focus on energy-saving products by consumers.

 

Rob Neale, CEO of Safestyle, commented:

"Despite a number of unforeseen challenges in 2022, I am pleased with the
significant progress we delivered on our strategic priorities and whilst we
remain mindful of the difficulties facing UK consumers, we are confident that
our business will continue to trade resiliently and return to profitability in
2023.  Since taking on the CEO role in December, I am excited about the
medium term opportunities for the Group and look forward to updating
shareholders on progress at our Final Results in March."

 

*current analyst consensus for the year ended 1 January 2023 is revenue of
£154m and an underlying loss before tax of £(4.5)m.

 

 

Enquiries:

 

 Safestyle UK plc                             via FTI Consulting

 Alan Lovell, Non-Executive Chairman

 Rob Neale, Chief Executive Officer

 Zeus (Nominated Adviser & Joint Broker)      Tel: 0203 829 5000

 Dan Bate / James Edis (Investment Banking)

 Dominic King (Corporate Broking)

 Liberum Capital Limited (Joint Broker)       Tel: 0203 100 2100

 Jamie Richards / Kate Bannatyne

 FTI Consulting (Financial PR)                Tel: 0203 727 1000

 Alex Beagley / Sam Macpherson / Amy Goldup

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 (http://www.safestyleukplc.co.uk) or
www.safestyle-windows.co.uk (http://www.safestyle-windows.co.uk) .

 

 

 

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