Year End Trading Update

23 January 2017

Safestyle UK plc

("Safestyle" or the "Company")

Year End Trading Update

Safestyle UK plc (AIM: SFE), the leading UK-focused retailer and manufacturer of PVCu windows and doors for the homeowner market, is pleased to provide a trading update for the year ended 31 December 2016.

The Company has continued to trade well, with revenue for the year increasing 9.8% to approximately £163.5 million (2015: £148.9 million). In addition, profit before tax has shown good progress and is in line with Board expectations. As expected, our second half showed slower growth than H1 due to more challenging comparatives.

Our performance in 2016 has been pleasing and we estimate that we have continued to gain market share. Our growth is reflected in the increase in frames manufactured during the year, up 3.2% to 288,460 (2015: 279,453 frames), whilst the number of installations increased 4.7% to 62,989 (2015: 60,134).

Price increases implemented at the start of 2016 helped us deliver improved operating margins, offsetting consumer finance subsidy costs, which have become an established feature of our cost base.

Cash flow has continued to be strong and we ended the year with cash of £13.5 million (31 December 2015: £16.5million), having paid a special dividend during the year of £5.6m and incurred £4.6m of expenditure on our new factory extension, which continues to be on time and on budget.

The Company intends to announce its audited results for the year ended 31 December 2016 on 23 March 2017.

Steve Birmingham, CEO of Safestyle UK, commented:

"I am pleased to report that trading during 2016 was consistently strong and that we have achieved another year of record turnover. 2017 will see increases in our raw material costs primarily due to sterling weakness. However, we plan to offset such increases by improving the price we obtain for our products. Despite the uncertain macroeconomic outlook, we remain cautiously optimistic and believe we are well positioned to continue growing the business"

-Ends-

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