21st Mar 2019 09:13
LONDON (Alliance News) - Safestyle UK PLC on Thursday said it has started 2019 well after swinging to a loss in 2018 amid litigation costs.
The PVC replacement windows retailer said it swung to pretax loss of GBP16.3 million in 2018 compared to GBP13.8 million profit a year earlier, as revenue fell by 27% to GBP116.4 million from GBP158.6 million.
The company said that 2018 was an unprecedented period of disruption and change for Safestyle that significantly knocked its financial performance.
In May, Safestyle made claims of trade mark infringement, passing off, misuse of confidential information, malicious falsehood and "various other matters" against NIAMAC Developments Ltd. As a result of interim applications to the Court, a series of injunctions were put in place in May and subsequently in July.
In September, the company announced that it had settled the claim against all parties with a number of appropriate undertakings made by NIAMAC to the Court. As a result, NIAMAC was placed into administration at the end of October 2018.
Shortly after that, Safestyle entered into new commercial agreement with its founder Mitu Misra, who was party to the company's legal dispute with rival NIAMAC. Under the five-year non-compete agreement, Misra will provide services to support the continued recovery of Safestyle, it said.
Under the three phase turnaround programme the company plans to form a new board, improve its margins and invest in its brands and innovation through the establishment of its national training academy.
Safestyle on Thursday said it has started 2019 well and is encouraged by its sales order intake for the first part of the year.
"The business faced a unique and challenging operating context in 2018, but I am pleased to say that, through the dedication and hard work of our people, we ended the year with our business stabilised and trading position materially improved," said Chief Executive Mike Gallacher.
"Whilst there is still much work to do, we look forward to the opportunities of the year ahead and returning Safestyle to profitability," added Gallacher.
The company expects to return to profitability in 2019 and to generate positive cashflow, it added.
Safestyle shares were trading 0.5% higher on Thursday at 70.70 pence each.
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