Safestyle UK PLC Trading Update and Directorate Change (7034L)
23 April 2018 - 4:00PM
UK Regulatory
TIDMSFE
RNS Number : 7034L
Safestyle UK PLC
23 April 2018
23 April 2018
Safestyle UK plc
("Safestyle" or the "Group")
Trading Update & Directorate Change
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.
In its Final Results announcement on 22 March 2018 the Group
noted that the beginning of the year had been difficult with a
continuing deterioration in the market resulting from declining
consumer confidence. This was exacerbated by the activities of an
aggressive new market entrant and it was noted that this
competitor's actions were impacting the Group in certain areas of
its operations, particularly in relation to its Sales and Canvass
divisions. As a result, the Group's order intake in 2018 to date
had been weak and its market share was under pressure.
The Board reports that, since then, the activities of this
competitor have intensified and the Group has taken longer to
rebuild its order intake to the rate previously anticipated and has
also experienced cost increases as management takes the necessary
actions to address these challenges.
The Board believes it is necessary to take a cautious approach
to the prospect of further short-term disruption to the Group's
operations. Therefore, the Board now expects Group revenues and
underlying profit before tax for the year ending 31 December 2018
to be significantly below current market expectations with profits
for the year expected to be heavily weighted to the second
half.
The Board remains resolutely focused on protecting Safestyle's
leading market position. Early evidence shows that the Group's
Sales and Canvass teams are more effective in those locations where
rebuilding has occurred. As an immediate priority, the Board is
undertaking a detailed strategic review of its operations and has a
number of measures in hand aimed at addressing the competitive
situation and improving performance.
The Group announced in its Final Results that it was proposing a
final dividend of 7.5p per share, subject to the approval of
shareholders at the Annual General Meeting to be held on 17 May
2018. As a result of the revised guidance and in order to provide
the Company with the strongest balance sheet from which to protect
and strengthen its position, the Board believes the most
responsible course of action is to preserve the Group's cash by
cancelling the recommended final dividend of 7.5p per share that
was due to be paid on 9 July to ordinary shareholders registered on
15 June 2018.
The Group also announces that Steve Halbert, Non-Executive
Chairman, has resigned from the Board with immediate effect. Peter
Richardson, an existing Non-Executive Director at Safestyle and a
member of the Audit, Remuneration and Nominations Committees, has
been appointed Non-Executive Chairman with immediate effect.
Peter joined the Safestyle Board in July 2016 and has extensive
Board level and Non-Executive Directorship experience across a
number of sectors including technology and engineering, fast moving
consumer goods (FMCG) and utilities. He was a Group Board Director
and Chief Operating Officer at Dyson Ltd for almost 15 years,
during which time the business grew from a revenue base of GBP40
million to more than GBP1 billion. Peter's early career was spent
in the sales and marketing functions of Cadbury Schweppes,
Coca-Cola and Colgate Palmolive.
Peter Richardson, Non-Executive Chairman, said:
"On behalf of the Board, I would like to acknowledge the
significant contribution Steve has made to the Group. He was the
Group's Chairman at the time of its successful IPO in 2013 and has
provided wise counsel, guidance and support to the Board over the
years. We wish him the very best for the future.
"I am now looking forward to working with the Board and the
executive team during what is a challenging period for the Group as
it undertakes a number of actions to emerge as a stronger, fitter,
more agile business."
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 via FTI Consulting
Steve Birmingham, Chief Executive
Officer
Mike Robinson, Chief Financial
Officer
Zeus Capital (Nominated Adviser Tel: 0203 829
& Joint Broker) 5000
Nick How / Dominic King
Liberum Capital Limited (Joint Tel: 0203 100
Broker) 2100
Neil Patel / Jamie Richards
FTI Consulting (Financial PR) Tel: 0203 727
Alex Beagley / James Styles 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.
This information is provided by RNS
The company news service from the London Stock Exchange
END
TSTSEFEFEFASEDL
(END) Dow Jones Newswires
April 23, 2018 02:00 ET (06:00 GMT)
Safestyle Uk (LSE:SFE)
Historical Stock Chart
From Apr 2024 to May 2024
Safestyle Uk (LSE:SFE)
Historical Stock Chart
From May 2023 to May 2024