26th Mar 2015 10:16
LONDON (Alliance News) - Window and door replacement company Safestyle UK PLC on Thursday said its pretax profit surged in 2014 on the back of better revenue and improved margins, prompting it to hike its final dividend.
Safestyle said its pretax profit rose to GBP16.4 million, up 73% year-on-year from GBP9.5 million in 2013. Revenue rose to GBP136 million from GBP124.8 million, up 9%, and the group's gross profit margin improved to 36.5% from 36.2% due to a slightly higher average sales price, reflecting higher sales growth for the company in the south of England.
The company said its volume of frames installed in the year rose 7% to 267,642 from 250,185 a year earlier, with its average unit sales price rising 1.6% and average order value up 3.8%. The group also increased its market share in the year to 8.48% from 7.85% at the end of 2013.
The group said it will pay a final dividend of 6.2 pence per share, up from 5.5 pence a year earlier, bringing its final dividend to 9.3 pence per share. The company did not pay an interim dividend in 2013, meaning its total payout for the year was 5.5 pence.
"Safestyle UK has again achieved impressive revenue growth and improved its margin which have resulted in a record level of profit in 2014. We have continued to increase our market share and therefore maintain our position as the leading player in the highly fragmented and competitive replacement window and door market," said Chief Executive Steve Birmingham.
Birmingham added the business is well positioned for further growth in 2015 amid a continuing recovery in the wider UK economy and in the repair, maintenance and improvement market. He added that following its price increase, introduced on January 1, the first 11 weeks of trading in 2015 have seen strong order intake, and said the company is trading in line with its expectations for the year.
Safestyle shares were up 3.2% to 178.50 pence on Thursday.
By Sam Unsted; [email protected]; @SamUAtAlliance
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