Safestyle UK PLC Trading and Operations Update & Notice of Results (0556G)
22 Julio 2021 - 01:00AM
UK Regulatory
TIDMSFE
RNS Number : 0556G
Safestyle UK PLC
22 July 2021
22 July 2021
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Safestyle UK plc
("Safestyle" or the "Group")
Trading and Operations Update, Upgraded FY21 Expectations &
Notice of Results
Safestyle UK plc (AIM: SFE), the leading retailer and
manufacturer of PVCu replacement windows and doors to the UK
homeowner market, today issues a trading and operations update for
the six months ended 4 July 2021 ("H1").
Mike Gallacher, CEO of Safestyle, commented:
"The Group has traded strongly through H1 and continued to make
good progress on its strategic agenda, including levelling up the
performance of our national sales and installations network,
transforming our customer experience and driving our sustainability
agenda. This strategic progress has been made despite the continued
operational challenges created by the Pandemic and the associated
market volatility experienced in the first half of 2021.
Despite these current uncertainties, in light of our positive H1
revenue growth, margin improvement and current order book, the
Board expects 2021's full year financial performance to be ahead of
current market expectations."
H1 Financial Headlines
The Group expects to report H1 revenues of c.GBP72.9m, an
increase of 13.1% over 2019 and 73.1% over 2020. Given the first
COVID lockdown in H1 2020 during which the business generated no
revenue for almost two full months, H1 2019 represents a more
meaningful comparative for H1 2021.
As reported in the AGM statement in May, the Group has made good
progress on improving its margins which have increased versus both
comparative periods. This continued improvement in margin
performance is after the impact of cost inflation in resin, other
materials and resource-related costs which have been widely
reported in our sector.
Net Cash was c.GBP14.4m at 4 July, with GBP3.0m of the Group's
committed banking facilities remaining undrawn as reported in our
Final Results on 25 March 2021. The VAT deferral reported at the
end of the year has reduced to GBP1.7m at the end of H1 and will be
fully repaid by the beginning of January 2022. With this exception,
working capital is being controlled normally and the Group is now
generating sustained positive net cash inflows.
Trading and Operational Update
As expected, the key national milestones reopening the economy
have slowed consumer demand in our sector and this is reflected in
our recent order intake following a very strong first quarter. As a
result, the Group has utilised some of the record order book that
had been built since May 2020. Notwithstanding this, the order book
at the end of June 2021 remains very healthy at c.10% ahead of June
2020 levels.
The business continued to invest in recovering customer service
performance during H1 following the significant operational issues
that have impacted the business from the COVID lockdowns in 2020
and 2021 . This work is closely aligned with our strategic priority
of driving growth through enhancing the quality and consistency of
our customer experience.
Outlook
Looking ahead, the Group remains exposed to two short term
uncertainties. Firstly, the market remains volatile, although
demand now appears to be returning to more normal levels as
consumer spending opportunities broaden. The extent to which this
will be mitigated by the current record levels of household savings
and the impact of the recent surge in home transactions is
uncertain.
Secondly, we are currently experiencing an elevated level of
operational disruption due to employees being required to
self-isolate as a result of the country's increasing levels of
COVID infection rates and related self-isolations of close
contacts. This is already having an impact on the business and
looks likely to adversely impact our customers' availability, our
factory and our supply chains if not rapidly addressed by the
Government. The senior management team are managing the situation
closely with the aim of sustaining stable operations utilising our
COVID-safe practices that have been embedded in the business since
early 2020.
Despite these current uncertainties, in light of the positive
revenue, margins and current order book, the Board expects 2021's
full year financial performance to be ahead of current market
expectations.
Notice of Results
The Group will report its half year results for the six months
ended 4 July 2021 on 23 September 2021.
Enquiries:
Safestyle UK plc via FTI Consulting
Mike Gallacher, Chief Executive Officer
Rob Neale, Chief Financial Officer
Zeus Capital (Nominated Adviser & Joint Tel: 0203 829 5000
Broker)
Dan Bate / Daniel Harris / Dominic King
Liberum Capital Limited (Joint Broker) Tel: 0203 100 2100
Neil Patel / Jamie Richards
FTI Consulting (Financial PR) Tel: 0203 727 1000
Alex Beagley / James Styles / Sam Macpherson
About Safestyle UK plc
The Group is the leading retailer and manufacturer of PVCu
replacement windows and doors to the UK homeowner market. For more
information please visit www.safestyleukplc.co.uk or
www.safestyle-windows.co.uk .
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END
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