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Safestyle UK Expecting Cost Reduction Boost In Difficult Market

22nd Mar 2018 11:46

LONDON (Alliance News) - Safestyle UK PLC on Thursday reported a steep drop in profit during 2017 in an increasingly difficult market, as it announced the hire of a new chief financial officer.

Safestyle, which makes PVCu replacement windows and doors, posted pretax profit of GBP13.8 million in 2017, down 29% year-on-year. On an underlying basis, which strips out non-recurring charges, share based payments, and taxation, this figure fell 26% to GBP15.1 million.

Revenue for the year was down 0.5% to GBP158.6 million. The volume of frames installed fell by 7.9% to 265,716, with the average unit sales pricing increasing 7.6% to GBP608.00. Safestyle's market share grew, however, to 10.7% at the end of 2017 from 10.2%.

Safestyle is paying a final dividend of 7.5 pence per share, taking the year's total to 11.25p, flat year-on-year.

Safestyle also announced the appointment of Robert Neale as its new finance chief, effective from "no later" than July 16. He will replace Mike Robinson, who is leaving after ten years at the company's annual general meeting at the end of May.

Neale is currently head of leisure travel finance at Jet2.com and Jet2 Holidays, part of London-listed Dart Group PLC.

Market conditions were stable at the start of 2017, Safestyle said, but contraction accelerated afterwards and the outlook for the large household discretionary purchase market remains difficult, and it expects this to continue throughout 2018.

Orders from digital activities and director response channels exceeded all other sources for the first time, now making up 47% of total sales.

Going into 2018, Safestyle is to continue investing in its digital transformation project to further reduce costs and increase operational effectiveness. It believes 2018 will be a "year of transition", with a leaner, more cost effective business by the end of it.

Safestyle shares were up 2.8% on Thursday at a price of 92.50 pence each.


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