Safestyle slumps as it warns over 2017 profit
Shares in Safestyle tumbled after the windows and doors retailer warned on Wednesday that underlying pre-tax profit for 2017 will be below current market expectations as conditions are expected to continue to be challenging.
FTSE AIM 100
3,637.40
17:14 26/04/24
FTSE AIM All-Share
755.28
17:14 26/04/24
General Retailers
3,910.25
16:59 26/04/24
Safestyle UK
0.32p
17:30 15/01/24
The company said that since its interim results in September, in which it highlighted a continuing deterioration in the market, demand has weakened further. In the three months to 30 November, sales have declined 0.3% in value and 6.8% by volume compared to the same period last year. For the 11-month period to the end of November, sales by value are down 0.8%.
In addition, Safestyle said sales in December are not being helped by severe weather disruption to the planned installation programme, so fourth-quarter sales will be below its already reduced expectations.
Still, the group said it is actively reviewing its costs and seeking operational efficiencies where it can. This includes a major restructuring of its sales and canvass function.
"Looking ahead, we expect market conditions to continue to be very challenging in 2018 and, although we aim to further consolidate our position of market leadership, the board has lowered its expectations of the group's performance in FY2018. The benefits of our cost saving and efficiency programme will fall mainly in 2018 and as such should help mitigate the impact on profitability of any further fall in market demand. We, therefore, expect only modest growth in earnings over 2017."
At 0910 GMT, the shares were down 18% to 157.75p.